2210000000
1432000000
8331000000
3207000000
429000000
3654000000
1574000000
1578000000
98000000
0
1023000000
121000000
50899000000
15544000000
0
0.01
3000000000
1253000000
1253000000
13000000
1946000000
386000000
553000000
16854000000
1737000000
30836000000
50899000000
18492000000
1849000000
9063000000
12667000000
1976000000
1326000000
0.001
10000000
0
0
0
2121000000
18929000000
754000000
1354000000
2199000000
1650000000
8664000000
2823000000
514000000
5685000000
1929000000
2363000000
-30000000
-22000000
38000000
148000000
55815000000
14990000000
0
0.01
3000000000
1201000000
1201000000
12000000
1456000000
424000000
803000000
20088000000
2329000000
35035000000
55815000000
19761000000
2286000000
11338000000
13366000000
2861000000
1715000000
0.001
10000000
0
0
0
2181000000
20782000000
783000000
1133000000
5421000000
10320000000
8865000000
7426000000
17815000000
14000000
33000000
7510000000
10258000000
1358000000
20810000000
13000000
15000000
6406000000
14376000000
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13000000
98000000
1023000000
18929000000
1253000000
20780000000
12000000
-52000000
38000000
20782000000
1201000000
<P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B>13. AARP </B></FONT></P>
<P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>The Company provides health insurance products and services to members of AARP under a Supplemental Health Insurance Program (the Program), and separate Medicare Advantage and Medicare Part D arrangements. The products and services under the Program include supplemental Medicare benefits (AARP Medicare Supplement Insurance), hospital indemnity insurance, including insurance for individuals between 50 to 64 years of age, and other related products. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>On October 3, 2007, the Company entered into four agreements with AARP, effective January 1, 2008, that amended its existing AARP arrangements. These agreements extended the Company’s arrangements with AARP on the Program to December 31, 2017, extended the Company’s arrangement with AARP on the Medicare Part D business to December 31, 2014, and gave the Company an exclusive right to use the AARP brand on the Company’s Medicare Advantage offerings until December 31, 2014, subject to certain limited exclusions. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT size=1> </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>Under the Program, the Company is compensated for transaction processing and other services, as well as for assuming underwriting risk. The Company is also engaged in product development activities to complement the insurance offerings. Premium revenues from the Company’s portion of the Program were approximately $5.7 billion in 2008, $5.3 billion in 2007 and $5.0 billion in 2006. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>The Company’s agreement with AARP on the Program provides for the maintenance of the Rate Stabilization Fund (RSF) that is held by the Company on behalf of policyholders. Underwriting gains or losses related to the AARP Medicare Supplement Insurance business are directly recorded as an increase or decrease to the RSF. The primary components of the underwriting results are premium revenue, medical costs, investment income, administrative expenses, member service expenses, marketing expenses and premium taxes. Underwriting gains and losses are recorded as an increase or decrease to the RSF and accrue to the overall benefit of the AARP policyholders, unless cumulative net losses were to exceed the balance in the RSF. To the extent underwriting losses exceed the balance in the RSF, losses would be borne by the Company. Deficits may be recovered by underwriting gains in future periods of the contract. To date, the Company has not been required to fund any underwriting deficits. The RSF balance is reported in Other Policy Liabilities in the Consolidated Balance Sheets and changes in the RSF are reported in Medical Costs in the Consolidated Statement of Operations. In January 2008, $127 million in cash was transferred out of the RSF to an external insurance entity that offers an AARP branded age 50 to 64 comprehensive insurance product. The Company believes the RSF balance at December 31, 2008 is sufficient to cover potential future underwriting and other risks and liabilities associated with the contract. </FONT></P><P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>The effects of changes in balance sheet amounts associated with the Program accrue to the overall benefit of the AARP policyholders through the RSF balance. Accordingly, the Company does not include the effect of such changes in its Consolidated Statements of Cash Flows. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>Under the Company’s agreement with AARP, the Company separately manages the assets that support the Program. These assets are held at fair value in the Consolidated Balance Sheets as Assets Under Management. These assets are invested at the Company’s discretion, within investment guidelines approved by the Program and are used to pay costs associated with the Program. The Company does not guarantee any rates of investment return on these investments and upon any transfer of the Program to another entity, the Company would transfer cash in an amount equal to the fair value of these investments at the date of transfer. Interest earnings and realized investment gains and losses on these assets accrue to the overall benefit of the AARP policyholders through the RSF and, thus, are not included in the Company’s earnings. Interest income and realized gains and losses related to assets under management are recorded as an increase to the AARP RSF and were $82 million, $108 million and $94 million in 2008, 2007 and 2006, respectively. </FONT></P><P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>Upon adoption of FAS 159 on January 1, 2008, the Company elected to measure the entirety of the AARP Assets Under Management on a fair value basis. The adoption impact was not material to the Company. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT size=1> </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>The following AARP Program-related assets and liabilities were included in the Company’s Consolidated Balance Sheets at December 31: </FONT></P>
<P style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px"> </P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0>
<TBODY>
<TR>
<TD width="86%"></TD>
<TD vAlign=bottom width="4%"></TD>
<TD></TD>
<TD></TD>
<TD vAlign=bottom width="4%"></TD>
<TD></TD>
<TD></TD></TR>
<TR>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px"><FONT face="Times New Roman" size=1><B>(in millions)</B></FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>2008</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>2007</B></FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Accounts Receivable</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>482</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>459</FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Assets Under Management</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>2,199</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>2,176</FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Other Assets</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>7</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>— </FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Medical Costs Payable</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,160</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,109</FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Accounts Payable and Accrued Liabilities</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>52</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>33</FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Other Policy Liabilities</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,047</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,132</FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Future Policy Benefits</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>429</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>— </FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Unearned Premiums</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>— </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>361</FONT></TD></TR></TBODY></TABLE>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>At December 31, 2008, the fair value of cash, cash equivalents and investments associated with the Program, included in Assets Under Management, and the fair value of Other Assets were classified in accordance with the fair value hierarchy as discussed in Note 5 of Notes to the Consolidated Financial Statements and were as follows: </FONT></P>
<P style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px"> </P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0>
<TBODY>
<TR>
<TD width="58%"></TD>
<TD vAlign=bottom width="7%"></TD>
<TD></TD>
<TD></TD>
<TD vAlign=bottom width="7%"></TD>
<TD></TD>
<TD></TD>
<TD vAlign=bottom width="7%"></TD>
<TD></TD>
<TD></TD>
<TD vAlign=bottom width="7%"></TD>
<TD></TD>
<TD></TD></TR>
<TR>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px"><FONT face="Times New Roman" size=1><B>(in millions)</B></FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Quoted Prices<BR>in Active<BR>Markets<BR>(Level 1)</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Other<BR>Observable<BR>Inputs<BR>(Level 2)</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Unobservable<BR>Inputs</B></FONT><BR><FONT face="Times New Roman" size=1><B>(Level 3)</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Total Fair<BR>Value</B></FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Cash and Cash Equivalents</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>240</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>18</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom noWrap align=right><FONT face="Times New Roman" size=2> — </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>258</FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Debt Securities:</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>U.S. Government and Direct Agency obligations</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>291</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>293</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>— </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>584</FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>State and Municipal obligations</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2> — </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>6</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>— </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>6</FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Corporate obligations</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>— </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>786</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>— </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>786</FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Mortgage-backed securities (a)</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>— </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>563</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>— </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>563</FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Total Debt Securities</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>291</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,648</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>— </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,939</FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Equity Securities — Available-for-Sale</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>— </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>2</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>— </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>2</FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Total Cash and Investments</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>531</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,668</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>— </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>2,199</FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Other Assets</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>— </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>— </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>7</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>7</FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Total Assets at Fair Value</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>531</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,668</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>7</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>2,206</FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD></TR></TBODY></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 2px; WIDTH: 10%; LINE-HEIGHT: 8px; BORDER-BOTTOM: #000000 0.5pt solid"> </P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>
<TBODY>
<TR>
<TD vAlign=top align=left width="4%"><FONT face="Times New Roman" size=2>(a)</FONT></TD>
<TD vAlign=top align=left><FONT face="Times New Roman" size=2>Includes Agency-backed mortgage pass-through securities. </FONT></TD></TR></TBODY></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT size=1></FONT> </P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"> </P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>At December 31, 2007, prior to the adoption of FAS 159 on January 1, 2008, the amortized cost, gross unrealized gains and losses, and fair value of cash, cash equivalents and investments associated with the Program, included in Assets Under Management, were as follows: </FONT></P>
<P style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px"> </P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0>
<TBODY>
<TR>
<TD width="62%"></TD>
<TD vAlign=bottom width="6%"></TD>
<TD></TD>
<TD></TD>
<TD vAlign=bottom width="6%"></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></TR>
<TR>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px"><FONT face="Times New Roman" size=1><B>(in millions)</B></FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Amortized Cost</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Gross<BR>Unrealized<BR>Gains</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Gross<BR>Unrealized<BR>Losses</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Fair<BR>Value</B></FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Cash and Cash Equivalents</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>441</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom noWrap align=right><FONT face="Times New Roman" size=2> — </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom noWrap align=right><FONT face="Times New Roman" size=2> — </FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>441</FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Debt Securities — Available-for-Sale:</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>U.S. Government and Direct Agency obligations</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>621</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>22</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>— </FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>643</FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>State and Municipal obligations</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>25</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>— </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>— </FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>25</FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Corporate obligations</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>555</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>5</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(7</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>553</FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Mortgage-backed securities (a)</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>514</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>3</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(3</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>514</FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Total Debt Securities — Available-for-Sale</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,715</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>30</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(10</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,735</FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Total Cash and Investments</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>2,156</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>30</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(10</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>2,176</FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD></TR></TBODY></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 2px; WIDTH: 10%; LINE-HEIGHT: 8px; BORDER-BOTTOM: #000000 0.5pt solid"> </P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>
<TBODY>
<TR>
<TD vAlign=top align=left width="4%"><FONT face="Times New Roman" size=2>(a)</FONT></TD>
<TD vAlign=top align=left><FONT face="Times New Roman" size=2>Includes Agency-backed mortgage pass-through securities. </FONT></TD></TR></TBODY></TABLE>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B>1. Description of Business </B></FONT></P>
<P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>UnitedHealth Group Incorporated (also referred to as “UnitedHealth Group” and “the Company”) is a diversified health and well-being company dedicated to making health care work better. The Company emphasizes enhancing the performance of the health system and improving the overall health and well-being of the people it serves and their communities. The Company helps people get the care they need at an affordable cost, supports the physician/patient relationship, and empowers people with the information, guidance and tools they need to make personal health choices and decisions. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>The Company’s primary focus is on improving the health care system by simplifying the administrative components of health care delivery, promoting evidence-based medicine as the standard for care, and providing relevant, actionable data that physicians, health care professionals, consumers, employers and other participants in health care can use to make better, more informed decisions. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>Through its diversified family of businesses, the Company leverages core competencies in advanced technology-based transactional capabilities; health care data, knowledge and information; and health care resource organization and care facilitation to improve access to health and well-being services, simplify the health care experience, promote quality and make health care more affordable. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B>4. Cash, Cash Equivalents and Investments </B></FONT></P>
<P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>As of December 31, the amortized cost, gross unrealized gains and losses, and fair value of cash, cash equivalents and investments, by type, were as follows: </FONT></P>
<P style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px"> </P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0>
<TBODY>
<TR>
<TD width="64%"></TD>
<TD vAlign=bottom width="5%"></TD>
<TD></TD>
<TD></TD>
<TD vAlign=bottom width="5%"></TD>
<TD></TD>
<TD></TD>
<TD vAlign=bottom width="5%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD vAlign=bottom width="5%"></TD>
<TD></TD>
<TD></TD></TR>
<TR>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px"><FONT face="Times New Roman" size=1><B>(in millions)</B></FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Amortized<BR>Cost</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Gross<BR>Unrealized<BR>Gains</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Gross<BR>Unrealized<BR>Losses</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Fair<BR>Value</B></FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2><B>2008</B></FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Cash and Cash Equivalents</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>7,426</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2> — </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2> — </FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>7,426</FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Debt Securities — Available-for-Sale:</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>U.S. Government and Direct Agency obligations</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,276</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>65</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(2</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,339</FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>State and Municipal obligations</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>6,440</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>134</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(90</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>6,484</FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Corporate obligations</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>2,802</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>33</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(132</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>2,703</FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Mortgage-backed securities (a)</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>2,989</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>62</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(105</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>2,946</FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Total Debt Securities — Available-for-Sale</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>13,507</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>294</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(329</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>13,472</FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>— </FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Equity Securities — Available-for-Sale</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>489</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>8</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(20</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>477</FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Debt Securities — Held-to-Maturity:</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>U.S. Government and Direct Agency obligations</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>157</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>10</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>— </FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>167</FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>State and Municipal obligations</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>19</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>— </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>— </FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>19</FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Corporate obligations</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>24</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>— </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>— </FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>24</FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Total Debt Securities—Held-to-Maturity</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>200</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>10</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>— </FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>210</FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Total Cash, Cash Equivalents and Investments</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>21,622</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>312</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(349</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>21,585</FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD></TR>
<TR>
<TD height=8></TD>
<TD colSpan=3 height=8></TD>
<TD colSpan=3 height=8></TD>
<TD colSpan=4 height=8></TD>
<TD colSpan=3 height=8></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2><B>2007</B></FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Cash and Cash Equivalents</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>8,865</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2> — </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2> — </FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>8,865</FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Debt Securities — Available-for-Sale:</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>U.S. Government and Direct Agency obligations</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,901</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>48</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>— </FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,949</FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>State and Municipal obligations</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>5,503</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>62</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(7</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>5,558</FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Corporate obligations</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>2,593</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>22</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(15</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>2,600</FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Mortgage-backed securities (a)</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>2,712</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>30</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(4</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>2,738</FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Total Debt Securities — Available-for-Sale</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>12,709</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>162</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(26</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>12,845</FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>— </FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Equity Securities — Available-for-Sale</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>364</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>20</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(1</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>383</FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Debt Securities — Held-to-Maturity:</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>U.S. Government and Direct Agency obligations</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>118</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>— </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>— </FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>118</FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>State and Municipal obligations</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>— </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>— </FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1</FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Corporate obligations</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>74</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>— </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>— </FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>74</FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Total Debt Securities — Held-to-Maturity</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>193</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>— </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>— </FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>193</FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Total Cash, Cash Equivalents and Investments</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>22,131</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>182</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(27</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>22,286</FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD></TR></TBODY></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 2px; WIDTH: 10%; LINE-HEIGHT: 8px; BORDER-BOTTOM: #000000 0.5pt solid"> </P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>
<TBODY>
<TR>
<TD vAlign=top align=left width="4%"><FONT face="Times New Roman" size=2>(a)</FONT></TD>
<TD vAlign=top align=left><FONT face="Times New Roman" size=2>Includes Agency-backed mortgage pass-through securities. </FONT></TD></TR></TBODY></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT size=1> </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align=center>
<P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px" align=center><FONT face="Times New Roman" size=2><B></B></FONT></P><FONT size=1> </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>The amortized cost and fair value of debt securities available-for-sale as of December 31, 2008, by contractual maturity, are as follows: </FONT></P>
<P style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px"> </P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0>
<TBODY>
<TR>
<TD width="82%"></TD>
<TD vAlign=bottom width="4%"></TD>
<TD></TD>
<TD></TD>
<TD vAlign=bottom width="4%"></TD>
<TD></TD>
<TD></TD></TR>
<TR>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px"><FONT face="Times New Roman" size=1><B>(in millions)</B></FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Amortized<BR>Cost</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Fair<BR>Value</B></FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Due in one year or less</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>857</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>860</FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Due after one year through five years</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>4,575</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>4,603</FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Due after five years through ten years</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>2,966</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>2,986</FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Due after 10 years</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>2,120</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>2,077</FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Mortgage-backed securities (a)</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>2,989</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>2,946</FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Total Debt Securities — Available-for-Sale</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>13,507</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>13,472</FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD></TR></TBODY></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 2px; WIDTH: 10%; LINE-HEIGHT: 8px; BORDER-BOTTOM: #000000 0.5pt solid"> </P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>
<TBODY>
<TR>
<TD vAlign=top align=left width="4%"><FONT face="Times New Roman" size=2>(a)</FONT></TD>
<TD vAlign=top align=left><FONT face="Times New Roman" size=2>Includes Agency-backed mortgage pass-through securities. </FONT></TD></TR></TBODY></TABLE>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>The amortized cost and fair value of debt securities held-to-maturity as of December 31, 2008, by contractual maturity, are as follows: </FONT></P>
<P style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px"> </P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0>
<TBODY>
<TR>
<TD width="86%"></TD>
<TD vAlign=bottom width="4%"></TD>
<TD></TD>
<TD></TD>
<TD vAlign=bottom width="4%"></TD>
<TD></TD>
<TD></TD></TR>
<TR>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px"><FONT face="Times New Roman" size=1><B>(in millions)</B></FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Amortized<BR>Cost</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Fair<BR>Value</B></FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Due in one year or less</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>78</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>79</FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Due after one year through five years</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>86</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>91</FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Due after five years through ten years</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>22</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>22</FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Due after 10 years</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>14</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>18</FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Total Debt Securities — Held-to-Maturity</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>200</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>210</FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD></TR></TBODY></TABLE>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>The gross unrealized losses and fair value of investments with unrealized losses by investment type and length of time that individual securities have been in a continuous unrealized loss position as of December 31 are as follows (a): </FONT></P>
<P style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px"> </P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0>
<TBODY>
<TR>
<TD width="55%"></TD>
<TD vAlign=bottom width="3%"></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 vAlign=bottom width="3%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD vAlign=bottom width="3%"></TD>
<TD></TD>
<TD></TD>
<TD vAlign=bottom width="3%"></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR>
<TR>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=5><FONT face="Times New Roman" size=1><B>Less Than 12 Months</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=5><FONT face="Times New Roman" size=1><B>12 Months or Greater</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=5><FONT face="Times New Roman" size=1><B>Total</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD></TR>
<TR>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px"><FONT face="Times New Roman" size=1><B>(in millions)</B></FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Fair<BR>Value</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Gross<BR>Unrealized<BR>Losses</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Fair<BR>Value</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Gross<BR>Unrealized<BR>Losses</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Fair<BR>Value</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Gross<BR>Unrealized<BR>Losses</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2><B>2008</B></FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Debt Securities — Available-for-Sale</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT 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="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>U.S. Government and Agency obligations</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>72</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(2</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2> — </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2> — </FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>72</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(2</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>State and Municipal obligations</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,414</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(65</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>113</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(25</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,527</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(90</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Corporate obligations</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,543</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(97</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>179</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(35</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,722</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(132</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Mortgage-backed securities (b)</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>546</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(83</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>93</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(22</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>639</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(105</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Total Debt Securities — Available-for-Sale</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>3,575</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(247</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>385</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(82</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>3,960</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(329</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD> </TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Equity Securities — Available-for-Sale</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>195</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(20</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2> — </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2> — </FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>195</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(20</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD> </TD></TR>
<TR>
<TD height=8></TD>
<TD colSpan=3 height=8></TD>
<TD colSpan=4 height=8></TD>
<TD colSpan=3 height=8></TD>
<TD colSpan=4 height=8></TD>
<TD colSpan=3 height=8></TD>
<TD colSpan=4 height=8></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2><B>2007</B></FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Debt Securities — Available-for-Sale</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT 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="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>U.S. Government and Agency obligations</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>41</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2> — </FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>5</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2> — </FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>46</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2> — </FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>State and Municipal obligations</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>466</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(5</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>318</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(2</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>784</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(7</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Corporate obligations</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>535</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(8</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>384</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(7</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>919</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(15</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Mortgage-backed securities (b)</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>142</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(1</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>302</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(3</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>444</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(4</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Total Debt Securities — Available-for-Sale</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,184</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(14</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,009</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(12</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>2,193</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(26</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD> </TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Equity Securities — Available-for-Sale</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>15</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(1</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2> — </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2> — </FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>15</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(1</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD> </TD></TR></TBODY></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 2px; WIDTH: 10%; LINE-HEIGHT: 8px; BORDER-BOTTOM: #000000 0.5pt solid"> </P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>
<TBODY>
<TR>
<TD vAlign=top align=left width="4%"><FONT face="Times New Roman" size=2>(a)</FONT></TD>
<TD vAlign=top align=left>
<P align=left><FONT face="Times New Roman" size=2>Debt securities classified as held-to-maturity investments have been excluded from this analysis. These investments are predominantly held in U.S. Government or Agency obligations and the contractual terms do </FONT></P></TD></TR></TBODY></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"> </P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>
<TBODY>
<TR>
<TD width="4%"><FONT size=1> </FONT></TD>
<TD vAlign=top align=left>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px; MARGIN-LEFT: 0%"><FONT face="Times New Roman" size=2>not permit the issuer to settle the securities at a price less than the amortized cost of the investment. Additionally, the fair values of these investments approximate their amortized cost. </FONT></P></TD></TR></TBODY></TABLE>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>
<TBODY>
<TR>
<TD vAlign=top align=left width="4%"><FONT face="Times New Roman" size=2>(b)</FONT></TD>
<TD vAlign=top align=left><FONT face="Times New Roman" size=2>Includes Agency-backed mortgage pass-through securities. </FONT></TD></TR></TBODY></TABLE>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>The unrealized losses as of December 31, 2008 were generated from approximately 4,400 positions out of a total of approximately 12,000 positions. The unrealized losses on investments in U.S. Government and Agency obligations, state and municipal obligations and corporate obligations as of December 31, 2008 were primarily caused by interest rate increases and not by unfavorable changes in the credit ratings associated with these securities. The Company evaluates impairment at each reporting period for securities where the fair value of the investment is less than its cost. The contractual cash flows of the U.S. Government and Agency obligations are either guaranteed by the U.S. Government or an agency of the U.S. Government. It is expected that the securities would not be settled at a price less than the cost of the Company’s investment. The Company evaluated the underlying credit quality of the issuers and the credit ratings of the state and municipal obligations and the corporate obligations, noting neither a significant deterioration since purchase nor other factors leading to an other-than-temporary impairment. </FONT></P><P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>A portion of the Company’s investments in equity securities and venture capital funds consists of investments held in various public and nonpublic companies concentrated in the areas of health care delivery and related information technologies. Market conditions that affect the value of health care and related technology stocks will likewise impact the value of the Company’s equity portfolio. The equity securities and venture capital funds were evaluated for severity and duration of unrealized loss, overall market volatility and other market factors. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>The Company analyzes relevant factors individually and in combination including the length of time and extent to which market value has been less than cost, the financial condition and near-term prospects of the issuer as well as specific events or circumstances that may influence the operations of the issuer, and its intent and ability to hold the investment for a sufficient time to recover the Company’s cost. The Company revises impairment judgments when new information becomes known or when it does not anticipate holding the investment until recovery. If any of the Company’s investments experiences a decline in fair value that is determined to be other-than-temporary, based on analysis of relevant factors, the Company records a realized loss in the Consolidated Statements of Operations. The Company does not consider the unrealized losses on each of the investments described above to be other-than-temporarily impaired at December 31, 2008. </FONT></P><P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>Realized gains and losses were as follows:</FONT></P>
<P style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px"> </P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0>
<TBODY>
<TR>
<TD width="85%"></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 vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=10><FONT face="Times New Roman" size=1><B>For the Year Ended</B></FONT><BR><FONT face="Times New Roman" size=1><B>December 31,</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD></TR>
<TR>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px"><FONT face="Times New Roman" size=1><B>(in millions)</B></FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>2008</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>2007</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>2006</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Gross Realized Gains</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>165</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>57</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>41</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Gross Realized Losses</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(171</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(19</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(37</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Net Realized (Losses) Gains</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(6</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>38</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>4</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD> </TD></TR></TBODY></TABLE>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>Included in the gross realized losses above are impairment charges of $121 million, $6 million and $4 million for 2008, 2007 and 2006, respectively. </FONT></P>
<P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B>8. Medical Costs and Medical Costs Payable </B></FONT></P>
<P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>Medical costs and medical costs payable include estimates of the Company’s obligations for medical care services that have been rendered on behalf of insured consumers, but for which claims have either not yet been received or processed, and for liabilities for physician, hospital and other medical cost disputes. The Company develops estimates for medical costs incurred but not reported using an actuarial process that is consistently applied, centrally controlled and automated. The actuarial models consider factors such as time from date of service to claim receipt, claim backlogs, care provider contract rate changes, medical care consumption and other medical cost trends. The Company estimates liabilities for physician, hospital and other medical cost disputes based upon an analysis of potential outcomes, assuming a combination of litigation and settlement strategies. Each period, the Company re-examines previously established medical costs payable estimates based on actual claim submissions and other changes in facts and circumstances. As the medical costs payable estimates recorded in prior periods develop, the Company adjusts the amount of the estimates and includes the changes in estimates in medical costs in the period in which the change is identified. </FONT></P><P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>The following table shows the components of the change in medical costs payable for the years ended December 31: </FONT></P>
<P style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px"> </P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0>
<TBODY>
<TR>
<TD width="73%"></TD>
<TD vAlign=bottom width="5%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD vAlign=bottom width="5%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD vAlign=bottom width="5%"></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR>
<TR>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px"><FONT face="Times New Roman" size=1><B>(in millions)</B></FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>2008</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>2007</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>2006</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Medical Costs Payable, Beginning of Period</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>8,331</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>8,076</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>7,262</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Acquisitions</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>331</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>— </FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>224</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Reported Medical Costs</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Current Year</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>60,589</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>55,855</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>53,738</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Prior Years</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(230</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(420</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(430</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Total Reported Medical Costs</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>60,359</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>55,435</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>53,308</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Claim Payments</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Payments for Current Year</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(52,872</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(48,240</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(46,566</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Payments for Prior Year</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(7,485</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(6,940</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(6,152</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Total Claim Payments</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(60,357</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(55,180</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(52,718</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Medical Costs Payable, End of Period</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>8,664</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>8,331</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>8,076</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD></TR></TBODY></TABLE>
<P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B>3. Acquisitions </B></FONT></P>
<P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>On May 30, 2008, the Company acquired all the outstanding shares of Unison Health Plans (Unison) for approximately $930 million in cash. Unison provides government-sponsored health plan coverage to people in </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>Pennsylvania, Ohio, Tennessee, Delaware, South Carolina and Washington, D.C. through a network of independent health care professionals. On a preliminary basis, the total consideration paid exceeded the estimated fair value of the net tangible assets acquired by $806 million, of which $89 million has been allocated to finite-lived intangible assets and $717 million to goodwill. The allocation is pending completion of a valuation analysis. The acquired goodwill is not deductible for income tax purposes. The results of operations and financial condition of Unison have been included in the Company’s consolidated results and the results of the Health Care Services reporting segment since the acquisition date. The pro forma effects of this acquisition on the Company’s Consolidated Financial Statements were not material. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>On February 25, 2008, the Company acquired all of the outstanding shares of Sierra Health Services, Inc. (Sierra), a diversified health care services company based in Las Vegas, Nevada, for approximately $2.6 billion in cash, representing a price of $43.50 per share of Sierra common stock. The total consideration paid exceeded the estimated fair value of the net tangible assets acquired by $2.5 billion. Based on management’s consideration of fair value, which included completion of a valuation analysis, $500 million has been allocated to finite-lived intangible assets and $2.0 billion to goodwill. The acquired goodwill is not deductible for income tax purposes. The U.S. Department of Justice approved the acquisition conditioned upon the divestiture of the Company’s individual SecureHorizons Medicare Advantage HMO plans in Clark and Nye Counties, Nevada, which represented approximately 30,000 members. The divestiture was completed on April 30, 2008. The Company received proceeds of $185 million for this transaction which were recorded as a reduction to Operating Costs. Group SecureHorizons Medicare Advantage plans offered through commercial contracts were excluded from the divestiture. Also, the Company retained Sierra’s Medicare Advantage HMO plans in Nevada. The results of operations and financial condition of Sierra have been included in the Company’s consolidated results and the results of the Health Care Services, OptumHealth and Prescription Solutions reporting segments since the acquisition date. The pro forma effects of this acquisition on the Company’s Consolidated Financial Statements were not material. </FONT></P><P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>On January 10, 2008, the Company acquired all of the outstanding shares of Fiserv Health, Inc. (Fiserv Health), a subsidiary of Fiserv, Inc., for approximately $740 million in cash. Fiserv Health is a leading administrator of medical benefits and also provides care facilitation services, specialty health solutions and PBM services. On a preliminary basis, the total consideration paid exceeded the estimated fair value of the net tangible assets acquired by $752 million, of which $253 million has been allocated to finite-lived intangible assets and $499 million to goodwill. The allocation is pending completion of a valuation analysis. The acquired goodwill is deductible for income tax purposes. The results of operations and financial condition of Fiserv Health have been included in the Company’s consolidated results and the results of the Health Care Services, OptumHealth, Ingenix and Prescription Solutions reporting segments since the acquisition date. The pro forma effects of this acquisition on the Company’s Consolidated Financial Statements were not material. </FONT></P><P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>On December 1, 2006, the Company acquired the Student Insurance Division (Student Resources) of The MEGA Life and Health Insurance Company through an asset purchase agreement. Student Resources primarily serves college and university students. This acquisition strengthened the Company’s position in this market and provided expanded distribution opportunities for its other UnitedHealth Group businesses. In exchange and under the terms of the asset purchase agreement, the Company issued a 10-year, $95 million promissory note bearing a 5.4% fixed interest rate and paid approximately $1 million in cash. The results of operations and financial condition of Student Resources have been included in the Company’s consolidated results and the results of the Health Care Services reporting segment since the acquisition date. The pro forma effects of this acquisition on the Company’s Consolidated Financial Statements were not material. </FONT></P><P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>On February 24, 2006, the Company acquired John Deere Health Care, Inc. (JDHC). JDHC serves employers primarily in Iowa, central and western Illinois, eastern Tennessee and southwestern Virginia. This acquisition </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>strengthened the Company’s resources and capabilities in these areas. The operations of JDHC reside primarily within the Company’s Health Care Services reporting segment. The Company paid approximately $515 million in cash in exchange for all of the outstanding equity of JDHC. The purchase price and costs associated with the acquisition exceeded the fair value of the net tangible assets acquired by approximately $376 million. Based on management’s consideration of fair value, which included completion of a valuation analysis, the Company has allocated the excess purchase price over the fair value of the net tangible assets acquired to finite-lived intangible assets of $53 million and goodwill of $323 million. The acquired goodwill is deductible for income tax purposes. The results of operations and financial condition of JDHC have been included in the Company’s Consolidated Financial Statements since the acquisition date. The pro forma effects of this acquisition on the Company’s Consolidated Financial Statements were not material. JDHC was renamed UnitedHealthcare Services Company of the River Valley, Inc. </FONT></P><P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>The finite-lived intangible assets and related weighted-average useful lives, by acquisition, as of December 31, 2008 consisted of the following: </FONT></P>
<P style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px"> </P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0>
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<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=4><FONT face="Times New Roman" size=1><B>Unison (a)</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=4><FONT face="Times New Roman" size=1><B>Sierra</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=4><FONT face="Times New Roman" size=1><B>Fiserv (a)</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=4><FONT face="Times New Roman" size=1><B>JDHC</B></FONT></TD></TR>
<TR>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px"><FONT face="Times New Roman" size=1><B>(in millions, except years)</B></FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Fair<BR>Value</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle><FONT face="Times New Roman" size=1><B>Weighted-<BR>Average<BR>Useful Life</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Fair<BR>Value</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle><FONT face="Times New Roman" size=1><B>Weighted-<BR>Average<BR>Useful Life</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Fair<BR>Value</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle><FONT face="Times New Roman" size=1><B>Weighted-<BR>Average<BR>Useful Life</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Fair<BR>Value</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle><FONT face="Times New Roman" size=1><B>Weighted-<BR>Average<BR>Useful Life</B></FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Customer Contracts and Membership Lists</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom noWrap align=right><FONT face="Times New Roman" size=2>41</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom noWrap align=right><FONT face="Times New Roman" size=2>6 years</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom noWrap align=right><FONT face="Times New Roman" size=2>443</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom noWrap align=right><FONT face="Times New Roman" size=2>14 years</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom noWrap align=right><FONT face="Times New Roman" size=2>252</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom noWrap align=right><FONT face="Times New Roman" size=2>12 years</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom noWrap align=right><FONT face="Times New Roman" size=2>51</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom noWrap align=right><FONT face="Times New Roman" size=2>10 years</FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Trademarks</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom noWrap align=right><FONT face="Times New Roman" size=2>32</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom noWrap align=right><FONT face="Times New Roman" size=2>20 years</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom noWrap align=right><FONT face="Times New Roman" size=2>56</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom noWrap align=right><FONT face="Times New Roman" size=2>20 years</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom noWrap align=right><FONT face="Times New Roman" size=2>1</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom noWrap align=right><FONT face="Times New Roman" size=2>3 years</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom noWrap align=right><FONT face="Times New Roman" size=2>n/a</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom noWrap align=right><FONT face="Times New Roman" size=2>n/a</FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Physician and Hospital Networks</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom noWrap align=right><FONT face="Times New Roman" size=2>16</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom noWrap align=right><FONT face="Times New Roman" size=2>20 years</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom noWrap align=right><FONT face="Times New Roman" size=2>1</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom noWrap align=right><FONT face="Times New Roman" size=2>15 years</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom noWrap align=right><FONT face="Times New Roman" size=2>n/a</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom noWrap align=right><FONT face="Times New Roman" size=2>n/a</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom noWrap align=right><FONT face="Times New Roman" size=2>2</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom noWrap align=right><FONT face="Times New Roman" size=2>15 years</FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Total Acquired Finite-Lived Intangible Assets</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom noWrap align=right><FONT face="Times New Roman" size=2>89</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom noWrap align=right><FONT face="Times New Roman" size=2>9 years</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom noWrap align=right><FONT face="Times New Roman" size=2>500</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom noWrap align=right><FONT face="Times New Roman" size=2>14 years</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom noWrap align=right><FONT face="Times New Roman" size=2>253</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom noWrap align=right><FONT face="Times New Roman" size=2>12 years</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom noWrap align=right><FONT face="Times New Roman" size=2>53</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom noWrap align=right><FONT face="Times New Roman" size=2>11 years</FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD></TR></TBODY></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 2px; WIDTH: 10%; LINE-HEIGHT: 8px; BORDER-BOTTOM: #000000 0.5pt solid"> </P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>
<TBODY>
<TR>
<TD vAlign=top align=left width="4%"><FONT face="Times New Roman" size=2>(a)</FONT></TD>
<TD vAlign=top align=left><FONT face="Times New Roman" size=2>Pending completion of a final valuation analysis </FONT></TD></TR></TBODY></TABLE>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>For the years ended December 31, 2008, 2007 and 2006, aggregate consideration paid, net of cash assumed and other effects, for smaller acquisitions was $94 million, $262 million and $276 million, respectively. These acquisitions were not material to the Company’s Consolidated Financial Statements. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B>15. Commitments and Contingencies </B></FONT></P>
<P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>The Company leases facilities, computer hardware and other equipment under long-term operating leases that are noncancelable and expire on various dates through 2028. Rent expense under all operating leases for 2008, 2007 and 2006 was $264 million, $223 million and $209 million, respectively. At December 31, 2008, future minimum annual lease payments, net of sublease income, under all noncancelable operating leases were as follows: </FONT></P>
<P style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px"> </P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0>
<TBODY>
<TR>
<TD width="85%"></TD>
<TD vAlign=bottom width="12%"></TD>
<TD></TD>
<TD></TD></TR>
<TR>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px"><FONT face="Times New Roman" size=1><B>(in millions)</B></FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Future Minimum<BR>Lease Payments</B></FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>2009</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>258</FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>2010</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>230</FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>2011</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>195</FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>2012</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>174</FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>2013</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>129</FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Thereafter</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>688</FONT></TD></TR></TBODY></TABLE>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>In conjunction with the PacifiCare acquisition the Company committed to make $50 million in charitable contributions for the benefit of California health care consumers, which has been accrued in its Consolidated Balance Sheets. The Company has committed to specific projects totaling approximately $30 million of the $50 million charitable commitment at December 31, 2008, of which $21 million was paid. Additionally, the Company agreed to invest $200 million in California’s health care infrastructure to further health care services to the underserved populations of the California marketplace, of which $87 million was invested at December 31, 2008. The timing and amount of individual contributions and investments are at the Company’s discretion subject to the advice and oversight of the local regulatory authorities; however, the Company’s goal is to have the investment commitment fully funded by the end of 2010. The investment commitment remains in place for 20 years after funding. </FONT></P><P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>The Company contracts on an administrative services only (ASO) basis with customers who fund their own claims. The Company charges these customers administrative fees based on the expected cost of administering their self-funded programs. In some cases, the Company provides performance guarantees related to its administrative function. If these standards are not met, the Company may be financially at risk up to a stated percentage of the contracted fee or a stated dollar amount. Amounts accrued for performance guarantees were not material at December 31, 2008 and 2007. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>At December 31, 2008, the Company has outstanding, undrawn letters of credit with financial institutions of approximately $60 million and surety bonds outstanding with insurance companies of approximately $300 million, primarily to bond contractual performance. </FONT></P>
<P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B>Legal Matters </B></FONT></P>
<P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Legal Matters Relating to Historical Stock Option Practices </I></B></FONT></P>
<P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Regulatory Inquiries. </I></B>In March 2006, the Company received an informal inquiry from the SEC relating to its historical stock option practices. On December 19, 2006, the Company received from the SEC staff a formal order of investigation into the Company’s historical stock option practices. On December 22, 2008, the Company announced it had reached an agreement to settle the SEC’s investigation. Without admitting or denying the SEC’s allegations, the Company agreed to a permanent injunction against any future violations of certain </FONT><FONT face="Times New Roman" size=2>reporting, books and records and internal accounting control provisions of the federal securities laws. This settlement is subject to approval by the U.S. District Court for the District of Minnesota. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>On May 17, 2006, the Company received a subpoena from the U.S. Attorney for the Southern District of New York requesting documents from 1999 to the date of the subpoena relating to its historical stock option practices. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>On May 17, 2006, the Company received a document request from the Internal Revenue Service (IRS) seeking documents relating to its historical stock option grants and other compensation for the persons who from 2003 to May 2006 were the named executive officers in the Company’s annual proxy statements. As previously disclosed in the Company’s 2006 Annual Report on Form 10-K, the Company believed that compensation expense related to prior exercises of certain stock options by certain of the Company’s executive officers would no longer qualify as deductible performance-based compensation in accordance with Internal Revenue Code Section 162(m) (Section 162(m)) as a result of the revision of measurement dates that occurred as part of the Company’s review of its historical stock option practices. In December 2007, the Company reached an agreement with the IRS resolving Section 162(m) issues in connection with tax years through 2005. Pursuant to this agreement, the Company paid $106 million in 2007 and an additional $20 million in the first quarter of 2008. </FONT></P><P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>On June 6, 2006, the Company received a Civil Investigative Demand from the Minnesota Attorney General requesting documents from January 1, 1997 to the date of the response concerning the Company’s executive compensation and historical stock option practices. The Company filed an action in Ramsey County Court, State of Minnesota, captioned <I>UnitedHealth Group Incorporated vs. State of Minnesota, by Lori Swanson, Attorney General</I>, seeking a protective order, which was denied. The Company appealed the denial of the protective order to the Minnesota Court of Appeals. On December 4, 2007, the Minnesota Court of Appeals acknowledged limitations on the Minnesota Attorney General’s authority to issue a Civil Investigative Demand, but affirmed the denial of a protective order. On February 27, 2008, the Minnesota Supreme Court declined to review the matter, and the Company has since produced relevant and responsive materials. </FONT></P><P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>The Company has also received requests for documents from U.S. Congressional committees relating to its historical stock option practices and compensation of executives. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>At the conclusion of any unresolved regulatory inquiries, the Company could be subject to regulatory or criminal fines or penalties as well as other sanctions or other contingent liabilities, which could be material. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Litigation Matters. </I></B>On March 29, 2006, the first of several shareholder derivative actions was filed against certain of the Company’s current and former officers and directors in the United States District Court for the District of Minnesota. The action has been consolidated with six other actions and is captioned <I>In re UnitedHealth Group Incorporated Shareholder Derivative Litigation</I>. The consolidated amended complaint is brought on behalf of the Company by several pension funds and other shareholders and names certain of the Company’s current and former officers and directors as defendants, as well as the Company as a nominal defendant. The consolidated amended complaint generally alleges that the defendants breached their fiduciary duties to the Company, were unjustly enriched, and violated the securities laws in connection with the Company’s historical stock option practices. The consolidated amended complaint seeks unspecified money damages, injunctive relief and rescission of certain options. On June 26, 2006, the Company’s Board of Directors created a Special Litigation Committee under Minnesota Statute 302A.241, consisting of two former Minnesota Supreme Court Justices, with the power to investigate the claims raised in the derivative actions and shareholder demands, and determine whether the Company’s rights and remedies should be pursued. </FONT></P><P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>A consolidated derivative action, reflecting a consolidation of two actions, is also pending in Hennepin County District Court, State of Minnesota. The consolidated complaint is captioned <I>In re UnitedHealth Group</I> </FONT><FONT face="Times New Roman" size=2><I>Incorporated Derivative Litigation</I>. The action was brought by two individual shareholders and names certain of the Company’s current and former officers and directors as defendants, as well as the Company as a nominal defendant. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>On December 6, 2007, the Special Litigation Committee concluded its review of claims relating to the Company’s historical stock option practices and published a report. The Special Litigation Committee reached settlement agreements on behalf of the Company with its former Chairman and Chief Executive Officer William W. McGuire, M.D., former General Counsel David J. Lubben, and former director William G. Spears. In addition, the Special Litigation Committee concluded that all claims against all named defendants in the derivative actions, including current and former Company officers and directors, should be dismissed. Each settlement agreement is conditioned upon final approval by the federal court and the state court after notice is provided to shareholders and dismissal of claims in the derivative actions. If either condition is not satisfied, then that individual’s settlement agreement will become null and void in its entirety and will have no force or effect. On January 2, 2008, the United States District Court for the District of Minnesota presented a certified question to the Minnesota Supreme Court concerning the scope of a court’s authority to review the settlement agreements under Minnesota law. The Minnesota Supreme Court answered that question on August 14, 2008, holding that the Minnesota business judgment rule requires a court to defer to a Special Litigation Committee’s decision to settle a shareholder derivative suit if the members of the Special Litigation Committee were disinterested and independent and the investigative procedures were adequate and pursued in good faith. On October 16, 2008, the Special Litigation Committee filed a motion with the federal court for preliminary approval of its recommended disposition of the derivative claims and for dismissal of those claims. On December 19, 2008, the federal and state courts issued a joint order holding that the Special Litigation Committee was independent and had acted in good faith and granting preliminary approval of the proposed settlements. Notice has been provided to class members, and a final settlement approval hearing is scheduled for February 13, 2009. </FONT></P><P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>In connection with the departure of Dr. McGuire, the United States District Court for the District of Minnesota issued an Order on November 29, 2006, preliminarily enjoining Dr. McGuire from exercising any Company stock options and preliminarily enjoining the Company and Dr. McGuire from taking any action with respect to Dr. McGuire’s employment agreement and related agreements. The original Order has been extended numerous times. On September 22, 2008, the federal court issued an order releasing the injunction as to some of those stock options. On December 12, 2008, the federal court issued an order permitting Dr. McGuire to exercise all of the options he retained under the terms of the derivative and PSLRA (discussed below) settlement agreements. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>On May 5, 2006, the first of seven putative class actions alleging a violation of the federal securities laws was brought by an individual shareholder against certain of the Company’s current and former officers and directors in the United States District Court for the District of Minnesota. On December 8, 2006, a consolidated amended complaint was filed consolidating the actions into a single action. The action is captioned <I>In re UnitedHealth Group Incorporated PSLRA Litigation</I>. The action was brought by lead plaintiff California Public Employees Retirement System (CalPERS) against the Company and certain of its current and former officers and directors. The consolidated amended complaint alleges that the defendants, in connection with the same alleged course of conduct identified in the shareholder derivative actions described above, made misrepresentations and omissions during the period between January 20, 2005 and May 17, 2006, in press releases and public filings that artificially inflated the price of the Company’s common stock. The consolidated amended complaint also asserts that during the class period, certain defendants sold shares of the Company’s common stock while in possession of material, non-public information concerning the matters set forth in the complaint. The consolidated amended complaint alleges claims under Sections 10(b), 14(a), 20(a) and 20A of the Securities Exchange Act of 1934 and Sections 11 and 15 of the 1933 Act. On March 18, 2008, the court granted plaintiffs’ motion for class certification. On July 2, 2008, the Company announced that it had reached an agreement in principle with the lead plaintiff </FONT><FONT face="Times New Roman" size=2>CalPERS and plaintiff class representative Alaska Plumbing and Pipefitting Industry Pension Trust, on behalf of themselves and members of the class, to settle the lawsuit. The proposed settlement will fully resolve all claims against the Company, all current officers and directors of the Company named in the lawsuit, and certain former officers and directors of the Company named in the lawsuit. No parties admit any wrongdoing as part of the proposed settlement. Under the terms of the proposed settlement, the Company has paid $895 million into a settlement fund for the benefit of class members. In addition to the payment to the settlement fund, the Company will also supplement the substantial changes it has already implemented in its corporate governance policies with additional changes and enhancements. The proposed settlement, which was approved by the boards of directors of CalPERS and the Company, is subject to final court approval. Further, the Company has the right to terminate the settlement if class members representing more than a specified amount of alleged securities losses elect to opt out of the settlement. Pursuant to the terms of the proposed settlement, on November 24, 2008, lead counsel for the plaintiffs filed with the court a stipulation of settlement entered into by all parties to the litigation. On December 18, 2008, the court granted preliminary approval of the stipulation of settlement. Notice has been provided to class members, and a final settlement approval hearing is scheduled for March 16, 2009. </FONT></P><P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>On June 6, 2006, a purported class action captioned <I>Zilhaver v. UnitedHealth Group Incorporated</I> was filed against the Company and certain of its current and former officers and directors in the United States District Court for the District of Minnesota. This action alleges that the fiduciaries to the Company-sponsored 401(k) plan violated the Employee Retirement Income Security Act (ERISA) by allowing the plan to continue to hold Company stock. The plaintiffs filed a motion to certify a class consisting of certain participants in the Company’s 401(k) plan. The defendants moved to dismiss the action on June 22, 2007. The court denied the defendants’ motion to dismiss and for partial summary judgment on June 30, 2008. On July 2, 2008, the Company announced it had reached an agreement in principle to resolve this lawsuit. Under the terms of the proposed settlement, the Company has accrued $17 million to be paid into a settlement fund for the benefit of class members, most of which will be paid by the Company’s insurance carriers. The proposed settlement will fully resolve all claims against the Company and all of the individual defendants in the action. No parties admit any wrongdoing as part of the proposed settlement. The proposed settlement is subject to final court approval. On January 8, 2009, the court granted preliminary approval of the proposed settlement. </FONT></P><P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>On August 28, 2006, the Company received a purported notice of default from persons claiming to hold its 5.8% Senior Unsecured Notes due March 15, 2036, alleging a violation of the indenture governing those debt securities. This followed the Company’s announcement that the Company would delay filing its quarterly report on Form 10-Q for the quarter ended June 30, 2006. On October 25, 2006, the Company filed an action in the United States District Court for the District of Minnesota, captioned <I>UnitedHealth Group Incorporated v. Cede & Co. and the Bank of New York</I>, seeking a declaratory judgment that the Company was not in default under the terms of the indenture. On or about November 2, 2006, the Company received a purported notice of acceleration from the same holders that purports to declare an acceleration of the Company’s 5.8% Senior Unsecured Notes due March 15, 2036, as a result of the Company’s failure to timely file its quarterly report on Form 10-Q for the quarter ended June 30, 2006. On March 10, 2008, the court granted summary judgment for the Company and dismissed the bondholders’ counterclaims, holding that the delay in filing the Company’s Form 10-Q did not constitute a default under the Indenture. The bondholders appealed the ruling to the Eighth Circuit Court of Appeals. On December 1, 2008, the Eighth Circuit Court of Appeals affirmed the judgment in favor of the Company. </FONT></P><P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>In addition, the Company may be subject to additional litigation or other proceedings or actions arising out of the Company’s historical stock option practices and the related restatement of its historical Consolidated Financial statements. Litigation and any potential regulatory proceeding or action may be time consuming, expensive and </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>distracting from the conduct of the Company’s business. The adverse resolution of any specific lawsuit or any potential regulatory proceeding or action could have a material adverse effect on the Company’s business, financial condition and results of operations. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>Other adjustments for non-operating cash charges may be required in connection with the resolution of stock option-related matters arising under litigation and regulatory reviews by the SEC, IRS, U.S. Attorney, U.S. Congressional committees and Minnesota Attorney General, the amount and timing of which are uncertain but which could be material. </FONT></P>
<P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Other Legal Matters </I></B></FONT></P>
<P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>Because of the nature of its businesses, the Company is frequently made party to a variety of legal actions related to the design and management of its service offerings. The Company records liabilities for its estimates of probable costs resulting from these matters. These matters include, but are not limited to, claims relating to health care benefits coverage, medical malpractice actions, contract disputes and claims related to disclosure of certain business practices. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>MDL Litigation.</I></B> Beginning in 1999, a series of class action lawsuits were filed against the Company by health care providers alleging various claims relating to the Company’s reimbursement practices, including alleged violations of the Racketeer Influenced Corrupt Organization Act (RICO) and state prompt payment laws and breach of contract claims. Many of these lawsuits were consolidated in a multi-district litigation in the United States District Court for the Southern District Court of Florida (MDL). In the lead MDL lawsuit, the court certified a class of health care providers for certain of the RICO claims. In 2006, the trial court dismissed all of the claims against the Company in the lead MDL lawsuit, and the Eleventh Circuit Court of Appeals later affirmed that dismissal, leaving eleven related lawsuits that had been stayed during the litigation of the lead MDL lawsuit. In August 2008, the trial court, applying its rulings in the lead MDL lawsuit, dismissed seven of the 11 related lawsuits, and all but one claim in an eighth lawsuit. The plaintiffs have appealed these dismissals to the Eleventh Circuit. The trial court ordered the final claim in the eighth lawsuit to arbitration. In December 2008, at the plaintiffs’ request, the trial court dismissed without prejudice one of the three remaining lawsuits. In late 2008, a federal magistrate judge recommended that the trial court deny the plaintiffs’ motions to remand to state court the remaining two lawsuits. On January 23, 2009, the trial court adopted this recommendation with respect to one of the lawsuits. The trial court has not yet issued an order with respect to the final lawsuit. In addition, the Company is party to a number of arbitrations in various jurisdictions involving similar claims. The Company is vigorously defending against the remaining claims in these cases. </FONT></P><P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>AMA Litigation.</I></B> On March 15, 2000, a group of plaintiffs including the American Medical Association (AMA) filed a lawsuit against the Company in state court in New York, which was removed to federal court. The complaint and subsequent amended complaints asserted antitrust claims and claims based on ERISA, as well as breach of contract and the implied covenant of good faith and fair dealing, deceptive acts and practices, and trade libel in connection with the calculation of reasonable and customary reimbursement rates for non-network health care providers by the Company’s affiliates. On January 14, 2009, after almost nine years of litigation and many rulings from the court on various motions, the parties announced an agreement to settle the lawsuit, along with a similar case filed in 2008 in federal court in New Jersey. Under the terms of the proposed settlement, the Company and its affiliated entities will be released from claims relating to their out-of-network reimbursement policies from March 15, 1994 through the date of final court approval of the settlement. The Company will pay a total of $350 million to fund the settlement for health plan members and out-of-network providers in connection with out-of-network procedures performed since March 15, 1994. The agreement contains no admission of wrongdoing. The proposed settlement is subject to preliminary and final court approval. In addition, the </FONT><FONT face="Times New Roman" size=2>Company has the right to terminate the settlement in the event that a certain number of class members elect to opt-out of the settlement. </FONT></P><P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>NYAG Investigation.</I></B> On February 13, 2008, the Office of the Attorney General of the State of New York (NYAG) announced that it was conducting an industry-wide investigation into out-of-network provider reimbursement practices of health insurers, including the Company, and served the Company with a notice of intent to initiate litigation. On January 13, 2009, the Company announced it had reached an agreement with the NYAG regarding the investigation. Under the terms of the agreement, the Company will pay $50 million to fund a not-for-profit entity to develop and own a new, independent database product to replace the Prevailing Health Charges System (PHCS) and Medical Data Research (MDR) database products owned by the Company’s subsidiary Ingenix, Inc. Both products are used by a number of health plans and employers as tools that help determine the amount to reimburse members who receive physician services outside their managed care networks. When the new database product is ready, the Company will cease using the PHCS and MDR databases and will use the new database for a period of at least five years in connection with out-of-network reimbursement in those benefit plans that employ a reasonable and customary standard for out of network reimbursements. </FONT></P><P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Shareholder Derivative Litigation.</I></B><B> </B>On January 16, 2009, a shareholder derivative action was filed against certain of the Company’s current and former directors and officers and Company subsidiary PacifiCare Health Systems (PacifiCare) in the Orange County, California, Superior Court. The complaint generally alleges that the defendants breached their fiduciary duties to the Company and were unjustly enriched by failing to prevent and remedy certain alleged claims processing and payment regulatory violations, including violations allegedly associated with the integration of PacifiCare. The complaint seeks unspecified money damages, injunctive relief, disgorgement of profits, and attorneys’ fees. The Company is vigorously defending this lawsuit. </FONT></P>
<P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Government Regulation </I></B></FONT></P>
<P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>The Company’s business is regulated at federal, state, local and international levels. The laws and rules governing the Company’s business and interpretations of those laws and rules are subject to frequent change. Broad latitude is given to the agencies administering those regulations. State legislatures and Congress continue to focus on health care issues as the subject of proposed legislation. Existing or future laws and rules could force us to change how the Company does business, restrict revenue and enrollment growth, increase the Company’s health care and administrative costs and capital requirements, and increase the Company’s liability in federal and state courts for coverage determinations, contract interpretation and other actions. Further, the Company must obtain and maintain regulatory approvals to market many of its products. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>The Company has been and is currently involved in various governmental investigations, audits and reviews. These include routine, regular and special investigations, audits and reviews by CMS, state insurance and health and welfare departments, state attorneys general, the Office of the Inspector General, the Office of Personnel Management, the Office of Civil Rights, U.S. Congressional committees, the U.S. Department of Justice, U.S. Attorneys, the SEC, the IRS, the U.S. Department of Labor and other governmental authorities. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>For example, in 2007, the California Department of Insurance examined the Company’s PacifiCare health insurance plan in California. The examination findings related to claims processing accuracy and timeliness; accurate and timely interest payments; timely implementation of provider contracts; timely, accurate provider dispute resolution; and other related matters. To date, the California Department of Insurance has not levied a financial penalty related to its findings. The Company is working closely with the department to resolve any outstanding issues arising from the findings of its examination. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT size=1> </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>Other examples of audits and investigations include an investigation by the U.S. Department of Labor of the Company’s administration of its employee benefit plans with respect to ERISA compliance and audits of the Company’s Medicare health plans to validate the coding practices of and supporting documentation maintained by its care providers. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>Such government actions can result in assessment of damages, civil or criminal fines or penalties, or other sanctions, including loss of licensure or exclusion from participation in government programs and could have a material adverse effect on the Company’s financial results. The coding audits may result in retrospective or prospective adjustments to payments made to health plans pursuant to CMS Medicare contracts. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B>9. Commercial Paper and Long-Term Debt </B></FONT></P>
<P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>Commercial paper and long-term debt consisted of the following: </FONT></P>
<P style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px"> </P>
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<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=6><FONT face="Times New Roman" size=1><B>December 31, 2008</B></FONT></TD>
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<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=6><FONT face="Times New Roman" size=1><B>December 31, 2007</B></FONT></TD>
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<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px"><FONT face="Times New Roman" size=1><B>(in millions)</B></FONT></P></TD>
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<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Carrying<BR>Value (a)</B></FONT></TD>
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<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Fair<BR>Value (b)</B></FONT></TD>
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<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Carrying<BR>Value (a)</B></FONT></TD>
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<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Fair<BR>Value (b)</B></FONT></TD>
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<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Commercial Paper</FONT></P></TD>
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<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>101</FONT></TD>
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<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>101</FONT></TD>
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<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,445</FONT></TD>
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<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,445</FONT></TD>
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<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>$500 million par, 3.3% Senior Unsecured Notes due January 2008</FONT></P></TD>
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<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>— </FONT></TD>
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<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>— </FONT></TD>
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<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>499</FONT></TD>
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<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>500</FONT></TD>
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<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>$250 million par, 3.8% Senior Unsecured Notes due February 2009</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>250</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>250</FONT></TD>
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<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>250</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>251</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>$650 million par, Senior Unsecured Floating-Rate Notes due March 2009</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>650</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>644</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>654</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>652</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>$450 million par, 4.1% Senior Unsecured Notes due August 2009</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>455</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>442</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>453</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>447</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>$500 million par, Senior Unsecured Floating-Rate Notes due June 2010</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>500</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>450</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>500</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>497</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>$250 million par, 5.1% Senior Unsecured Notes due November 2010</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>263</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>245</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>253</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>252</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>$250 million par, Senior Unsecured Floating-Rate Notes due February 2011</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>250</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>219</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>— </FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>— </FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>$750 million par, 5.3% Senior Unsecured Notes due March 2011</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>806</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>705</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>775</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>764</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>$450 million par, 5.5% Senior Unsecured Notes due November 2012</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>493</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>410</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>456</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>457</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>$550 million par, 4.9% Senior Unsecured Notes due February 2013</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>549</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>513</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>— </FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>— </FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>$450 million par, 4.9% Senior Unsecured Notes due April 2013</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>473</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>419</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>454</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>447</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>$250 million par, 4.8% Senior Unsecured Notes due February 2014</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>280</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>221</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>253</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>241</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>$500 million par, 5.0% Senior Unsecured Notes due August 2014</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>567</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>460</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>511</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>487</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>$500 million par, 4.9% Senior Unsecured Notes due March 2015</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>567</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>429</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>511</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>478</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>$750 million par, 5.4% Senior Unsecured Notes due March 2016</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>883</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>661</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>774</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>732</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>$95 million par, 5.4% Senior Unsecured Notes due November 2016</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>95</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>84</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>95</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>90</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>$500 million par, 6.0% Senior Unsecured Notes due June 2017</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>620</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>450</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>536</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>502</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>$250 million par, 6.0% Senior Unsecured Notes due November 2017</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>297</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>223</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>254</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>252</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>$1,100 million par, 6.0% Senior Unsecured Notes due February 2018</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,098</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,015</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>— </FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>— </FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>$1,095 million par, zero coupon Senior Unsecured Notes due November 2022</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>530</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>522</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>503</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>426</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>$850 million par, 5.8% Senior Unsecured Notes due March 2036</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>844</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>648</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>844</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>767</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>$500 million par, 6.5% Senior Unsecured Notes due June 2037</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>495</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>420</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>495</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>496</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>$650 million par, 6.6% Senior Unsecured Notes due November 2037</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>645</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>548</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>645</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>652</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>$1,100 million par, 6.9% Senior Unsecured Notes due February 2038</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,083</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>963</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>— </FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>— </FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Interest Rate Swaps</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(c</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(c</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(151</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(151</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Total Commercial Paper and Long-Term Debt</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>12,794</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>11,042</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>11,009</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>10,684</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Less Commercial Paper and Current Maturities of Long-Term Debt</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(1,456</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(1,437</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(1,946</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(1,947</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Long-Term Debt, less current maturities</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>11,338</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>9,605</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>9,063</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>8,737</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD> </TD></TR></TBODY></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 2px; WIDTH: 10%; LINE-HEIGHT: 8px; BORDER-BOTTOM: #000000 0.5pt solid"> </P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>
<TBODY>
<TR>
<TD vAlign=top align=left width="4%"><FONT face="Times New Roman" size=2>(a)</FONT></TD>
<TD vAlign=top align=left><FONT face="Times New Roman" size=2>The carrying value of debt has been adjusted based upon the applicable interest rate swap fair values in accordance with the fair value hedge short-cut method of accounting described below. </FONT></TD></TR></TBODY></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"> </P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>
<TBODY>
<TR>
<TD vAlign=top align=left width="4%"><FONT face="Times New Roman" size=2>(b)</FONT></TD>
<TD vAlign=top align=left><FONT face="Times New Roman" size=2>Estimated based on third-party quoted market prices for the same or similar issues. </FONT></TD></TR></TBODY></TABLE>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>
<TBODY>
<TR>
<TD vAlign=top align=left width="4%"><FONT face="Times New Roman" size=2>(c)</FONT></TD>
<TD vAlign=top align=left><FONT face="Times New Roman" size=2>As of December 31, 2007, the fair value of the interest rate swaps was classified within debt in the Company’s Consolidated Balance Sheets. As of December 31, 2008, the fair values of the interest rate swaps were $622 million with $7 million classified in Other Current Assets and $615 million classified in Other Assets. </FONT></TD></TR></TBODY></TABLE>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>Maturities of commercial paper and long-term debt for the years ending December 31 are as follows: </FONT></P>
<P style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px"> </P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0>
<TBODY>
<TR>
<TD width="81%"></TD>
<TD vAlign=bottom width="15%"></TD>
<TD></TD>
<TD></TD></TR>
<TR>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px"><FONT face="Times New Roman" size=1><B>(in millions)</B></FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Maturities of<BR>Commercial Paper and<BR>Long-Term Debt</B></FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>2009</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,456</FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>2010</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>763</FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>2011</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,056</FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>2012</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>493</FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>2013</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,022</FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Thereafter</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>8,004</FONT></TD></TR></TBODY></TABLE>
<P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Commercial Paper and Credit Facilities </I></B></FONT></P>
<P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>Commercial paper consisted of senior unsecured debt sold on a discount basis with maturities up to 270 days. As of December 31, 2008, the Company had $101 million outstanding commercial paper with interest rates ranging from 5.1% to 7.1%. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>In November 2008, the Company entered into a $750 million 364-day revolving bank credit facility which replaced the Company’s $1.5 billion 364-day revolving bank credit facility entered into in November 2007. The interest rate is variable based on term and amount and is calculated based on LIBOR plus a spread. At December 31, 2008, the interest rate ranged from 2.9% to 4.3%. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>In May 2007, the Company amended and restated its $1.3 billion five-year revolving bank credit facility which included increasing the capacity. There is currently $2.5 billion available under this credit facility which matures in May 2012. The interest rate is variable based on term and amount and is calculated based on LIBOR plus a spread. At December 31, 2008, the interest rate ranged from 0.6% to 2.0%. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>These credit facilities support the Company’s commercial paper program and are available for general working capital purposes. As of December 31, 2008, the Company had no amounts outstanding under its credit facilities. </FONT></P>
<P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Long-Term Debt </I></B></FONT></P>
<P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>In February 2008, the Company issued a total of $3.0 billion in senior unsecured debt, which included: $250 million of floating-rate notes due February 2011, $550 million of 4.9% fixed-rate notes due February 2013, $1.1 billion of 6.0% fixed-rate notes due February 2018 and $1.1 billion of 6.9% fixed-rate notes due February 2038. The floating-rate notes are benchmarked to the London Interbank Offered Rate (LIBOR) and had an interest rate of 3.8% at December 31, 2008. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>In November 2007, the Company issued $500 million of zero coupon notes due November 2022. These zero coupon notes are original issue discount notes with an aggregate principal amount due at maturity of $1.1 billion and an accretion yield of 5.3%. These notes have a put feature that allows a note holder to require the Company to repurchase the notes at the accreted value at certain annual dates in the future, beginning on November 15, 2010. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT size=1> </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>In November 2007, the Company issued a total of $1.6 billion in senior unsecured debt, which included: $250 million of 5.1% fixed-rate notes due November 2010, $450 million of 5.5% fixed-rate notes due November 2012, $250 million of 6.0% fixed-rate notes due November 2017 and $650 million of 6.6% fixed-rate notes due November 2037. These notes were issued pursuant to an exemption from registration under Section 4(2) of the Securities Act of 1933 (1933 Act). In February 2008, the Company completed an exchange offer in which then-existing noteholders exchanged each series of these notes for a new issue of substantially identical debt securities registered under the 1933 Act. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>In June 2007, the Company issued a total of $1.5 billion in senior unsecured debt, which included: $500 million of floating-rate notes due June 2010, $500 million of 6.0% fixed-rate notes due June 2017 and $500 million of 6.5% fixed-rate notes due June 2037. The floating-rate notes are benchmarked to LIBOR and had an interest rate of 1.7% at December 31, 2008. These notes were issued pursuant to an exemption from registration under Section 4(2) of the 1933 Act. In February 2008, the Company completed an exchange offer in which then-existing noteholders exchanged each series of these notes for a new issue of substantially identical debt securities registered under the 1933 Act. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>In March 2006, the Company issued a total of $3.0 billion in senior unsecured debt to refinance outstanding commercial paper. The Company issued $650 million of floating-rate notes due March 2009, $750 million of 5.3% fixed-rate notes due March 2011, $750 million of 5.4% fixed-rate notes due March 2016 and $850 million of 5.8% fixed-rate notes due March 2036. The floating-rate notes are benchmarked to the LIBOR and had an interest rate of 2.3% at December 31, 2008. </FONT></P>
<P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Debt Covenants </I></B></FONT></P>
<P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>The Company’s debt arrangements and credit facilities contain various covenants, the most restrictive of which require the Company to maintain a debt-to-total-capital ratio (calculated as the sum of commercial paper and debt divided by the sum of commercial paper, debt and shareholders’ equity) below 50%. The Company was in compliance with the requirements of all debt covenants as of December 31, 2008. In August 2006, the Company received a purported notice of default from persons claiming to hold its 5.8% Senior Unsecured Notes due March 15, 2036 alleging a violation of the indenture governing those debt securities. This followed the Company’s announcement that the Company would delay filing its quarterly report on Form 10-Q for the quarter ended June 30, 2006. See Note 15 of Notes to the Consolidated Financial Statements for a discussion of the proceeding regarding the purported default. </FONT></P><P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Derivative Instruments and Hedging Activities </I></B></FONT></P>
<P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>To more closely align interest expense with interest income received on the Company’s cash equivalent and investment balances, the Company has entered into interest rate swap agreements to convert the majority of its interest rate exposure from fixed rates to floating rates. The interest rate swap agreements have aggregate notional amounts of $5.1 billion and $5.6 billion at December 31, 2008 and December 31, 2007, respectively. The floating rates are benchmarked to LIBOR. The swaps are designated as fair value hedges of the fixed-rate debt under the short-cut method of FAS 133, and are reported at fair market value in the Company’s Consolidated Balance Sheets with the carrying value of the debt adjusted by an offsetting amount, with no changes in market value recognized through the Company’s Consolidated Statements of Operations. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>In January 2009 the Company terminated $4.9 billion notional of interest rate swap contracts with financial institutions to lock-in the benefit of current low market interest rates. The cumulative adjustment to the carrying value of the Company’s debt was $513 million and will be amortized as a reduction to interest expense over the remaining life of the related debt, resulting in a weighted average interest rate of 3.3%. </FONT></P>
<P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B>12. Share-Based Compensation and Other Employee Benefit Plans </B></FONT></P>
<P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>The Company’s 2002 Stock Incentive Plan (Plan), as amended and restated May 15, 2002, is intended to attract and retain employees and non-employee directors, offer them incentives to put forth maximum efforts for the success of the Company’s business and afford them an opportunity to acquire a proprietary interest in the Company. The Plan allows the Company to grant stock options, stock appreciation rights, restricted stock, restricted stock units, performance awards or other stock-based awards to eligible employees and non-employee directors. The Plan incorporates the following prior plans: 1991 Stock and Incentive Plan, 1998 Broad-Based Stock Incentive Plan and Non-employee Director Stock Option Plan. All outstanding stock options, restricted stock and other awards issued under the prior plans shall remain subject to the terms and conditions of these plans under which they were issued. </FONT></P><P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>As of December 31, 2008, the Company had approximately 58.7 million shares available for future grants of share-based awards under its share-based compensation plan, including, but not limited to, incentive or non-qualified stock options, stock-settled stock appreciation rights (SARs), and up to 20.8 million of awards in restricted stock and restricted stock units (collectively, restricted shares). The Company’s existing share-based awards consist mainly of non-qualified stock options, SARs and restricted shares. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT size=1> </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Stock Options and SARs </I></B></FONT></P>
<P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>Stock options and SARs generally vest ratably over four to six years and may be exercised up to 10 years from the date of grant. Stock option and SAR activity for the year ended December 31, 2008 is summarized in the table below: </FONT></P>
<P style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px"> </P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0>
<TBODY>
<TR>
<TD width="47%"></TD>
<TD vAlign=bottom width="10%"></TD>
<TD></TD>
<TD></TD>
<TD vAlign=bottom width="10%"></TD>
<TD></TD>
<TD></TD>
<TD vAlign=bottom width="10%"></TD>
<TD></TD>
<TD vAlign=bottom width="10%"></TD>
<TD></TD>
<TD></TD></TR>
<TR>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle><FONT face="Times New Roman" size=1><B>Shares</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Weighted-<BR>Average Exercise<BR>Price</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle><FONT face="Times New Roman" size=1><B>Weighted-Average<BR>Remaining<BR>Contractual Life</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Aggregate<BR>Intrinsic Value</B></FONT></TD></TR>
<TR>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom align=middle><FONT face="Times New Roman" size=1><B>(in thousands)</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom colSpan=2><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom align=middle><FONT face="Times New Roman" size=1><B>(in years)</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>(in millions)</B></FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Outstanding at Beginning of Period</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>160,653</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>34</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Granted</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>15,055</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>34</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Exercised</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(16,335</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>13</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Forfeited</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(8,621</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>49</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Outstanding at End of Period</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>150,752</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>36</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>5.1</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>547</FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Exercisable at End of Period</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>109,568</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>32</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>4.0</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>545</FONT></TD></TR></TBODY></TABLE>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>To determine compensation expense related to the Company’s stock options and SARs, the fair value of each award is estimated on the date of grant using an option-pricing model. For purposes of estimating the fair value of the Company’s employee stock option and SAR grants, the Company uses a binomial model. The principal assumptions the Company used in applying the option-pricing models were as follows: </FONT></P>
<P style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px"> </P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0>
<TBODY>
<TR>
<TD width="64%"></TD>
<TD vAlign=bottom width="2%"></TD>
<TD></TD>
<TD vAlign=bottom width="2%"></TD>
<TD></TD>
<TD vAlign=bottom width="2%"></TD>
<TD></TD></TR>
<TR>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle><FONT face="Times New Roman" size=1><B>2008</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle><FONT face="Times New Roman" size=1><B>2007</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle><FONT face="Times New Roman" size=1><B>2006</B></FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Risk Free Interest Rate</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>2.2% - 3.4%</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>3.8% - 5.2%</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>4.1% - 5.2%</FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Expected Volatility</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>29.5%</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>24.2%</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>26.0%</FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Expected Dividend Yield</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.1%</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.1%</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.1%</FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Forfeiture Rate</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>5.0%</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>5.0%</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>5.0%</FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Expected Life in Years</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>4.3</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>4.1</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>4.1</FONT></TD></TR></TBODY></TABLE>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>The risk-free interest rate is based on U.S. Treasury yields in effect at the time of grant. Expected volatilities are based on the implied volatilities from traded options on the Company’s common stock and the historical volatility of the Company’s common stock. The Company uses historical data to estimate option and SAR exercises and forfeitures within the valuation model. The expected lives of options and SARs granted represents the period of time that the awards granted are expected to be outstanding based on historical exercise patterns. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>The weighted-average grant date fair value of stock options and SARs granted for 2008, 2007 and 2006 was $9 per share, $14 per share and $11 per share, respectively. The total intrinsic value of stock options and SARs exercised during 2008, 2007 and 2006 was $244 million, $1.1 billion and $753 million, respectively. </FONT></P>
<P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Restricted Shares </I></B></FONT></P>
<P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>Restricted shares generally vest ratably over two to five years. Compensation expense related to restricted shares is determined based upon the fair value of each award on the date of grant. Restricted share activity for year ended December 31, 2008 is summarized in the table below: </FONT></P>
<P style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px"> </P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0>
<TBODY>
<TR>
<TD width="80%"></TD>
<TD vAlign=bottom width="7%"></TD>
<TD></TD>
<TD></TD>
<TD vAlign=bottom width="7%"></TD>
<TD></TD>
<TD></TD></TR>
<TR>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px"><FONT face="Times New Roman" size=1><B>(shares in thousands)</B></FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle><FONT face="Times New Roman" size=1><B>Shares</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Weighted-<BR>Average Grant<BR>Date Fair Value</B></FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Nonvested at Beginning of Period</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>738</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>59</FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Granted</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>6,024</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>34</FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Vested</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(311</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>55</FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Forfeited</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(169</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>41</FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Nonvested at End of Period</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>6,282</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>36</FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD></TR></TBODY></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B> </B></FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT size=1> </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>The weighted-average grant date fair value of restricted shares granted for 2008, 2007 and 2006 was $34 per share, $51 per share and $56 per share, respectively. The total fair value of restricted shares vested during 2008, 2007 and 2006 was $17 million, $35 million and $35 million, respectively. </FONT></P>
<P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Employee Stock Purchase Plan </I></B></FONT></P>
<P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>The Company’s Employee Stock Purchase Plan (ESPP) is intended to enhance employee commitment to the goals of the Company, by providing a means of achieving stock ownership at advantageous terms to eligible employees of the Company. Eligible employees are allowed to purchase the Company’s stock at a discounted price, which is 85% of the lower market price of the Company’s common stock at the beginning or at the end of the six-month purchase period. During 2008, 2007 and 2006, 2.9 million shares, 1.9 million shares and 1.9 million shares of common stock, respectively, were purchased under the ESPP. The compensation expense is included in the compensation expense amounts recognized and discussed below. At December 31, 2008, there were 13.1 million shares of common stock available for issuance under the ESPP. </FONT></P>
<P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Share-Based Compensation Recognition </I></B></FONT></P>
<P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>The Company recognizes compensation expense for share-based awards, including stock options, SARs and restricted shares, on a straight-line basis over the related service period (generally the vesting period) of the award, or to an employee’s eligible retirement date under the award agreement, if earlier. For 2008, 2007 and 2006 the Company recognized compensation expense related to its share-based compensation plans of $305 million ($202 million net of tax effects), $505 million ($325 million net of tax effects) and $404 million ($259 million net of tax effects), respectively. Share-based compensation expense is recognized within Operating Costs in the Company’s Consolidated Statements of Operations. Share compensation expense for 2006 included $31 million associated with the cash settlement of stock options expiring or forfeiting during the period. At December 31, 2008, there was $518 million of total unrecognized compensation cost related to share awards that is expected to be recognized over a weighted-average period of approximately 1.5 years. For 2008, 2007 and 2006 the income tax benefit realized from share-based award exercises was $106 million, $399 million and $287 million, respectively. </FONT></P><P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>Included in the share-based compensation expense for the year ended December 31, 2007 is $176 million ($112 million net of tax benefit) of expenses recorded in the first quarter of 2007 related to application of deferred compensation rules under Section 409A of the Internal Revenue Code (Section 409A) to the Company’s historical stock option practices. As part of its review of the Company’s historical stock option practices, the Company determined that certain stock options granted to individuals who were nonexecutive officer employees at the time of grant were granted with an exercise price that was lower than the closing price of the Company’s common stock on the applicable accounting measurement date, subjecting these individuals to additional tax under Section 409A. The Company elected to pay these individuals for the additional tax costs relating to such stock options exercised in 2006 and early 2007. For any outstanding stock options subject to additional tax under Section 409A that were granted to nonexecutive officer employees, the Company increased the exercise price and committed to make cash payments to these optionholders for their vested options based on the difference between the original stock option price and the revised increased stock option price. The payments will be made on a quarterly basis upon vesting of the applicable awards. The first payment of $110 million was made to optionholders in January 2008 for options that vested through December 31, 2007. Payments of $6 million were made to optionholders in 2008 for options that vested through October 31, 2008. Payments of $20 million were made to optionholders in January 2009 for options that vested through December 31, 2008. Aggregate future payments will be $7 million, assuming all applicable options vest during 2009. If the modified stock options are subsequently exercised, the Company will recover these cash payments at that time from exercise proceeds at the revised increased stock option exercise prices. </FONT></P><P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT size=1> </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>The $176 million Section 409A charge includes $87 million of expense ($55 million net of tax benefit) for the payment of certain optionholders’ tax obligations for stock options exercised in 2006 and early 2007 and $89 million of expense ($57 million net of tax benefit) for the modification related to increasing the exercise price of unexercised stock options granted to nonexecutive officer employees and the related cash payments. These amounts have been recorded in the corporate segment. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>As further discussed in Note 11 of Notes to the Consolidated Financial Statements, the Company maintains a share repurchase program. The objectives of the share repurchase program are to optimize the Company’s capital structure, cost of capital and return to shareholders, as well as to offset the dilutive impact of shares issued for share-based award exercises. </FONT></P>
<P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Other Employee Benefit Plans </I></B></FONT></P>
<P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>The Company also offers a 401(k) plan for all employees. Compensation expense related to this plan was not significant for the years 2008, 2007 and 2006. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>The Company has provided Supplemental Executive Retirement Plan benefits (SERPs), which are non-qualified defined benefit plans, for its current CEO and its former CEO, as well as for certain nonexecutive officers under plans that were assumed in acquisitions. No additional amounts are accruing to the SERPs of the Company’s current CEO and former CEO. The SERPs are non-contributory, unfunded and provide benefits based on years of service and compensation during employment. Pension expense is determined using various actuarial methods to estimate the total benefits ultimately payable to executives, and is allocated to service periods. The actuarial assumptions used to calculate pension costs are reviewed annually. Pension expense was not significant for the years 2008, 2007 and 2006. The total SERP liability as of December 31, 2008 was $159 million, of which $51 million was recorded within Accounts Payable and Accrued Liabilities and $108 million was recorded within Other Liabilities in the Consolidated Balance Sheets. The total SERP liability as of December 31, 2007 of $139 million was recorded within Other Liabilities in the Consolidated Balance Sheets. </FONT></P><P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>In addition, the Company maintains non-qualified, unfunded deferred compensation plans, which allow certain members of senior management and executives to defer portions of their salary or bonus and receive certain Company contributions on such deferrals, subject to plan limitations. The deferrals are recorded within Long-Term Investments with an approximately equal amount in Other Liabilities in the Consolidated Balance Sheets. The total deferrals are distributable based upon termination of employment or other periods, as elected under each plan and are $182 million and $225 million as of December 31, 2008 and 2007, respectively. </FONT></P>
<P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B>14. Fair Value of Financial Instruments </B></FONT></P>
<P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>In the normal course of business, the Company invests in various financial assets, incur various financial liabilities and enter into agreements involving derivative securities. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>Fair values are disclosed for all financial instruments for which it is practicable to estimate fair value, whether or not such values are recognized in the Consolidated Balance Sheets. Management obtains quoted market prices for these disclosures. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>The carrying amounts reported in the Consolidated Balance Sheets for cash and cash equivalents, premium and other current receivables, unearned premiums, accounts payable and accrued expenses, income taxes payable, and certain other current liabilities approximate fair value because of their short-term nature. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>For a discussion of the methods and assumptions that were used to estimate the fair value of each class of financial instrument see Note 5 to the Notes to Consolidated Financial Statements for information on Debt and Equity Securities, Note 13 to the Notes to Consolidated Financial Statements for information on AARP and Note 9 to the Notes to Consolidated Financial Statements for information related to Interest Rate Swaps and Senior Unsecured Notes. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>The carrying values and fair values of the Company’s financial instruments at December 31 are as follows: </FONT></P>
<P style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px"> </P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0>
<TBODY>
<TR>
<TD width="68%"></TD>
<TD vAlign=bottom width="3%"></TD>
<TD></TD>
<TD></TD>
<TD vAlign=bottom width="3%"></TD>
<TD></TD>
<TD></TD>
<TD vAlign=bottom width="3%"></TD>
<TD></TD>
<TD></TD>
<TD vAlign=bottom width="3%"></TD>
<TD></TD>
<TD></TD></TR>
<TR>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=5><FONT face="Times New Roman" size=1><B>2008</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=5><FONT face="Times New Roman" size=1><B>2007</B></FONT></TD></TR>
<TR>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px"><FONT face="Times New Roman" size=1><B>(in millions)</B></FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Carrying<BR>Value</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Fair<BR>Value</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Carrying<BR>Value</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Fair<BR>Value</B></FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2><B>Assets</B></FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Debt Securities — Available-for-Sale</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>13,472</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>13,472</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>12,845</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>12,845</FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Equity Securities — Available-for-Sale</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>477</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>477</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>383</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>383</FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Debt Securities — Held-to-Maturity</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>200</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>210</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>193</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>193</FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>AARP Program-related Investments</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,941</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,941</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,735</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,735</FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Interest rate swaps</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>622</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>622</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>— </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>— </FONT></TD></TR>
<TR>
<TD height=8></TD>
<TD colSpan=3 height=8></TD>
<TD colSpan=3 height=8></TD>
<TD colSpan=3 height=8></TD>
<TD colSpan=3 height=8></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2><B>Liabilities</B></FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Senior Unsecured Notes</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>12,693</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>10,941</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>9,564</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>9,239</FONT></TD></TR></TBODY></TABLE>
<P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B>5. Fair Value Measurements </B></FONT></P>
<P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>The Company adopted FAS 157, subject to the deferral provisions of FSP 157-2 as discussed in Note 2 of Notes to the Consolidated Financial Statements, as of January 1, 2008. This standard defines fair value, establishes a </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>framework for measuring fair value and expands disclosures about fair value measurements. The fair value hierarchy is as follows: </FONT></P>
<P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2><I>Level 1</I> — Quoted (unadjusted) prices for identical assets in active markets. </FONT></P>
<P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2><I>Level 2</I> — Other observable inputs, either directly or indirectly, including: </FONT></P>
<P style="MARGIN-TOP: 0px; FONT-SIZE: 6px; MARGIN-BOTTOM: 0px"> </P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>
<TBODY>
<TR>
<TD width="5%"><FONT size=1> </FONT></TD>
<TD vAlign=top align=left width="2%"><FONT face="Times New Roman" size=2>•</FONT></TD>
<TD vAlign=top width="1%"><FONT size=1> </FONT></TD>
<TD vAlign=top align=left>
<P align=left><FONT face="Times New Roman" size=2>Quoted prices for similar assets in active markets; </FONT></P></TD></TR></TBODY></TABLE>
<P style="MARGIN-TOP: 0px; FONT-SIZE: 6px; MARGIN-BOTTOM: 0px"> </P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>
<TBODY>
<TR>
<TD width="5%"><FONT size=1> </FONT></TD>
<TD vAlign=top align=left width="2%"><FONT face="Times New Roman" size=2>•</FONT></TD>
<TD vAlign=top width="1%"><FONT size=1> </FONT></TD>
<TD vAlign=top align=left>
<P align=left><FONT face="Times New Roman" size=2>Quoted prices for identical or similar assets in non-active markets (few transactions, limited information, non-current prices, high variability over time, etc.); </FONT></P></TD></TR></TBODY></TABLE>
<P style="MARGIN-TOP: 0px; FONT-SIZE: 6px; MARGIN-BOTTOM: 0px"> </P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>
<TBODY>
<TR>
<TD width="5%"><FONT size=1> </FONT></TD>
<TD vAlign=top align=left width="2%"><FONT face="Times New Roman" size=2>•</FONT></TD>
<TD vAlign=top width="1%"><FONT size=1> </FONT></TD>
<TD vAlign=top align=left>
<P align=left><FONT face="Times New Roman" size=2>Inputs other than quoted prices that are observable for the asset (interest rates, yield curves, volatilities, default rates, etc.); and </FONT></P></TD></TR></TBODY></TABLE>
<P style="MARGIN-TOP: 0px; FONT-SIZE: 6px; MARGIN-BOTTOM: 0px"> </P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>
<TBODY>
<TR>
<TD width="5%"><FONT size=1> </FONT></TD>
<TD vAlign=top align=left width="2%"><FONT face="Times New Roman" size=2>•</FONT></TD>
<TD vAlign=top width="1%"><FONT size=1> </FONT></TD>
<TD vAlign=top align=left>
<P align=left><FONT face="Times New Roman" size=2>Inputs that are derived principally from or corroborated by other observable market data. </FONT></P></TD></TR></TBODY></TABLE>
<P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%"><FONT face="Times New Roman" size=2><I>Level 3</I> — Unobservable inputs that cannot be corroborated by observable market data. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>Fair values of available-for-sale debt and equity securities are based on quoted market prices, where available. The Company obtains one price for each security primarily from a third party pricing service (pricing service), which generally uses Level 1 or Level 2 inputs for the determination of fair value in accordance with FAS 157. The pricing service normally derives the security prices through recently reported trades for identical or similar securities, making adjustments through the reporting date based upon available observable market information. For securities not actively traded, the pricing service may use quoted market prices of comparable instruments or discounted cash flow analyses, incorporating inputs that are currently observable in the markets for similar securities. Inputs that are often used in the valuation methodologies include, but are not limited to, non-binding broker quotes, benchmark yields, credit spreads, default rates and prepayment speeds. As the Company is responsible for the determination of fair value, it performs quarterly analyses on the prices received from the pricing service to determine whether the prices are reasonable estimates of fair value. As a result of these reviews, the Company has not historically adjusted the prices obtained from the pricing service. </FONT></P><P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>In instances in which the inputs used to measure fair value fall into different levels of the fair value hierarchy, the fair value measurement has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular item to the fair value measurement in its entirety requires judgment, including the consideration of inputs specific to the asset. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT size=1> </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>The following table presents information as of December 31, 2008 about the Company’s financial assets, excluding AARP, that are measured at fair value on a recurring basis, according to the valuation techniques the Company used to determine their fair values. See Note 13 of Notes to the Consolidated Financial Statements for further detail on AARP. </FONT></P>
<P style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px"> </P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0>
<TBODY>
<TR>
<TD width="59%"></TD>
<TD vAlign=bottom width="6%"></TD>
<TD></TD>
<TD></TD>
<TD vAlign=bottom width="6%"></TD>
<TD></TD>
<TD></TD>
<TD vAlign=bottom width="6%"></TD>
<TD></TD>
<TD></TD>
<TD vAlign=bottom width="6%"></TD>
<TD></TD>
<TD></TD></TR>
<TR>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px"><FONT face="Times New Roman" size=1><B>(in millions)</B></FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Quoted Prices<BR>in Active<BR>Markets<BR>(Level 1)</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Other<BR>Observable<BR>Inputs<BR>(Level 2)</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Unobservable<BR>Inputs<BR>(Level 3)</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Total Fair<BR>Value</B></FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Cash and Cash Equivalents</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>6,564</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>862</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2> — </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>7,426</FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Debt Securities — Available for Sale:</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>U.S. Government and Direct Agency obligations</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>800</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>539</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>— </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,339</FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>State and Municipal obligations</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>— </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>6,484</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>— </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>6,484</FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Corporate obligations</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>7</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>2,650</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>46</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>2,703</FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Mortgage-backed securities (a)</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>— </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>2,930</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>16</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>2,946</FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Total Debt Securities — Available for Sale</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>807</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>12,603</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>62</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>13,472</FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Equity Securities — Available for Sale</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>170</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>3</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>304</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>477</FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Total Cash, Cash Equivalents and Investments at Fair Value</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>7,541</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>13,468</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>366</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>21,375</FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Interest Rate Swaps</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>— </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>622</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>— </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>622</FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Total Assets at Fair Value</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>7,541</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>14,090</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>366</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>21,997</FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD></TR></TBODY></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 2px; WIDTH: 10%; LINE-HEIGHT: 8px; BORDER-BOTTOM: #000000 0.5pt solid"> </P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>
<TBODY>
<TR>
<TD vAlign=top align=left width="4%"><FONT face="Times New Roman" size=2>(a)</FONT></TD>
<TD vAlign=top align=left><FONT face="Times New Roman" size=2>Includes Agency-backed mortgage pass-through securities. </FONT></TD></TR></TBODY></TABLE>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>The following methods and assumptions were used to estimate the fair value of each class of financial instrument: </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Cash and Cash Equivalents.</I></B> The carrying value of cash and cash equivalents approximates fair value as maturities are less than three months. Fair values of cash equivalent instruments that do not trade on a regular basis in active markets are classified as Level 2. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Debt Securities.</I></B> The estimated fair values of debt securities held as available-for-sale are based on quoted market prices and/or other market data for the same or comparable instruments and transactions in establishing the prices. Fair values of debt securities that do not trade on a regular basis in active markets are classified as Level 2. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Equity Securities.</I></B> All equity securities are held as available-for-sale investments. The fair values of investments in venture capital portfolios are estimated using a market model approach that relies heavily on management assumptions and qualitative observations and are therefore considered to be Level 3 fair values. Fair value estimates for publicly traded equity securities are based on quoted market prices and/or other market data for the same or comparable instruments and transactions in establishing the prices. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Interest Rate Swaps.</I></B> Fair values of the Company’s interest rate swaps are estimated utilizing the terms of the swaps and publicly available market yield curves. Because the swaps are unique and are not actively traded, the fair values are classified as Level 2 estimates. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT size=1></FONT> </P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT size=1> </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>The Level 3 activity for the year ended December 31, 2008 is summarized below: </FONT></P>
<P style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px"> </P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0>
<TBODY>
<TR>
<TD width="87%"></TD>
<TD vAlign=bottom width="11%"></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR>
<TR>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px"><FONT face="Times New Roman" size=1><B>(in millions)</B></FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Level 3 Activity</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Balance at Beginning of Period</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>133</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Purchases, net</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>216</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Net Unrealized Gains</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>2</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Net Realized Losses</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(54</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Transfer into Level 3</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>69</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Balance at End of Period</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>366</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD> </TD></TR></TBODY></TABLE>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>Net realized losses were included in Investment and Other Income in the Consolidated Statements of Operations. </FONT></P>
<P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B>7. Goodwill and Other Intangible Assets </B></FONT></P>
<P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>Changes in the carrying amount of goodwill, by reporting segment, during the years ended December 31, 2008 and 2007, were as follows: </FONT></P>
<P style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px"> </P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0>
<TBODY>
<TR>
<TD width="49%"></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 vAlign=bottom width="6%"></TD>
<TD></TD>
<TD></TD>
<TD vAlign=bottom width="6%"></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR>
<TR>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px"><FONT face="Times New Roman" size=1><B>(in millions)</B></FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Health Care<BR>Services</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>OptumHealth</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Ingenix</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Prescription<BR>Solutions</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Consolidated</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Balance at December 31, 2006</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>14,266</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,073</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>807</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>676</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>16,822</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Acquisitions</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>9</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>15</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>90</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2> — </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>114</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Subsequent Payments and Adjustments, net</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(136</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(8</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>61</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(82</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Balance at December 31, 2007</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>14,139</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,080</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>958</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>677</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>16,854</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Acquisitions</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>2,986</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>54</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>74</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>148</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>3,262</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Subsequent Payments and Adjustments, net</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(81</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>18</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>20</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>15</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(28</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Balance at December 31, 2008</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>17,044</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,152</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,052</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>840</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>20,088</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD> </TD></TR></TBODY></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT size=1> </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT size=1> </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>The gross carrying value, accumulated amortization and net carrying value of other intangible assets were as follows: </FONT></P>
<P style="MARGIN-TOP: 0px; FONT-SIZE: 6px; MARGIN-BOTTOM: 0px"> </P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0>
<TBODY>
<TR>
<TD width="48%"></TD>
<TD vAlign=bottom width="4%"></TD>
<TD></TD>
<TD></TD>
<TD vAlign=bottom width="4%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD vAlign=bottom width="4%"></TD>
<TD></TD>
<TD></TD>
<TD vAlign=bottom width="4%"></TD>
<TD></TD>
<TD></TD>
<TD vAlign=bottom width="4%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD vAlign=bottom width="4%"></TD>
<TD></TD>
<TD></TD></TR>
<TR>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=9><FONT face="Times New Roman" size=1><B>December 31, 2008</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=9><FONT face="Times New Roman" size=1><B>December 31, 2007</B></FONT></TD></TR>
<TR>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px"><FONT face="Times New Roman" size=1><B>(in millions)</B></FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Gross<BR>Carrying<BR>Value</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Accumulated<BR>Amortization</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Net<BR>Carrying<BR>Value</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Gross<BR>Carrying<BR>Value</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Accumulated<BR>Amortization</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Net<BR>Carrying<BR>Value</B></FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Customer Contracts and Membership Lists</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>2,620</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(585</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>2,035</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,879</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(394</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,485</FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Patents, Trademarks and Technology</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>392</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(169</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>223</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>302</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(121</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>181</FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Other</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>120</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(49</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>71</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>109</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(38</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>71</FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Total</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>3,132</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(803</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>2,329</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>2,290</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(553</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,737</FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD></TR></TBODY></TABLE>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>Amortization expense relating to intangible assets was $252 million in 2008, $192 million in 2007 and $181 million in 2006. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>Estimated full year amortization expense relating to intangible assets for each of the next five years is as follows: </FONT></P>
<P style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px"> </P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0>
<TBODY>
<TR>
<TD width="88%"></TD>
<TD vAlign=bottom width="9%"></TD>
<TD></TD>
<TD></TD></TR>
<TR>
<TD vAlign=bottom noWrap>
<P style="WIDTH: 40pt; BORDER-BOTTOM: #000000 1px solid"><FONT face="Times New Roman" size=1><B>(in millions)</B></FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Estimated<BR>Amortization<BR>Expense</B></FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>2009</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>236</FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>2010</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>226</FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>2011</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>221</FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>2012</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>219</FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>2013</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>212</FONT></TD></TR></TBODY></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B>10. Income Taxes </B></FONT></P>
<P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>The components of the provision for income taxes for the years ended December 31 are as follows: </FONT></P>
<P style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px"> </P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0>
<TBODY>
<TR>
<TD width="79%"></TD>
<TD vAlign=bottom width="3%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD vAlign=bottom width="3%"></TD>
<TD></TD>
<TD></TD>
<TD vAlign=bottom width="3%"></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR>
<TR>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px"><FONT face="Times New Roman" size=1><B>(in millions)</B></FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>2008</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>2007</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>2006</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Current Provision</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Federal</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,564</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>2,284</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>2,236</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>State and Local</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>145</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>166</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>158</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Total Current Provision</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,709</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>2,450</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>2,394</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Deferred Provision</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(62</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>201</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(25</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Total Provision for Income Taxes</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,647</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>2,651</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>2,369</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD> </TD></TR></TBODY></TABLE>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>The reconciliation of the tax provision at the U.S. Federal Statutory Rate to the provision for income taxes for the years ended December 31 is as follows: </FONT></P>
<P style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px"> </P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0>
<TBODY>
<TR>
<TD width="79%"></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-BOTTOM: #000000 1px solid" vAlign=bottom noWrap>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px"><FONT face="Times New Roman" size=1><B>(in millions)</B></FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>2008</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>2007</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>2006</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Tax Provision at the U.S. Federal Statutory Rate</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,618</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>2,557</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>2,285</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>State Income Taxes, net of federal benefit</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>94</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>120</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>116</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Tax-Exempt Investment Income</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(69</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(52</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(50</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Other, net</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>4</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>26</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>18</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Provision for Income Taxes</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,647</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>2,651</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>2,369</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD> </TD></TR></TBODY></TABLE>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>The components of deferred income tax assets and liabilities as of December 31 are as follows: </FONT></P>
<P style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px"> </P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0>
<TBODY>
<TR>
<TD width="84%"></TD>
<TD vAlign=bottom width="4%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD vAlign=bottom width="4%"></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR>
<TR>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px"><FONT face="Times New Roman" size=1><B>(in millions)</B></FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>2008</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>2007</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Deferred Income Tax Assets</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Accrued Expenses and Allowances</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>93</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>83</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Unearned Premiums</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>56</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>54</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Medical Costs Payable and Other Policy Liabilities</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>223</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>168</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Long Term Liabilities</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>354</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>132</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Net Operating Loss Carryforwards</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>213</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>110</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Share-Based Compensation</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>413</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>346</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Unrecognized Tax Benefits</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>100</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>105</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Net Unrealized Losses on Investments</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>15</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>— </FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Other</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>181</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>116</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Subtotal</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,648</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,114</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Less: Valuation Allowances</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(193</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(73</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Total Deferred Income Tax Assets</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,455</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,041</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD> </TD></TR>
<TR>
<TD height=8></TD>
<TD colSpan=4 height=8></TD>
<TD colSpan=4 height=8></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Deferred Income Tax Liabilities</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT 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="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Capitalized Software Development</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(439</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(391</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Net Unrealized Gains on Investments</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>— </FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(55</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Intangible Assets</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(885</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(707</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Interest Rate Swaps</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(230</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>— </FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Property and Equipment</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(5</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(2</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Total Deferred Income Tax Liabilities</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(1,559</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(1,155</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Net Deferred Income Tax Liabilities</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(104</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(114</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD> </TD></TR></TBODY></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT size=1> </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT size=1> </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>Valuation allowances are provided when it is considered more likely than not that deferred tax assets will not be realized. The valuation allowances primarily relate to future tax benefits on certain state net operating loss carryforwards. Federal net operating loss carryforwards of $82 million expire beginning in 2012 through 2028, and state net operating loss carryforwards expire beginning in 2009 through 2028. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>The Company adopted the provisions of FIN 48 on January 1, 2007. The cumulative effect of adopting FIN 48 for the first quarter of 2007 resulted in an increase to its liability for unrecognized tax benefits of $88 million, which included a reduction of $61 million in retained earnings and an increase of $26 million in goodwill. The total amount of unrecognized tax benefits as of the date of adoption was $341 million. A reconciliation of the beginning and ending amount of unrecognized tax benefits as of December 31 is as follows: </FONT></P>
<P style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px"> </P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0>
<TBODY>
<TR>
<TD width="88%"></TD>
<TD vAlign=bottom width="4%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD vAlign=bottom width="4%"></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR>
<TR>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px"><FONT face="Times New Roman" size=1><B>(in millions)</B></FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>2008</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>2007</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Gross Unrecognized Tax Benefits, Beginning of the Period</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>271</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>341</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Gross Increases:</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT 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="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Current Year Tax Positions</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>14</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>23</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Prior Year Tax Positions</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>43</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>26</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Acquired Reserves</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>94</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2> — </FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Gross Decreases:</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT 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="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Prior Year Tax Positions</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(29</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(31</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Settlements</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(4</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(87</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Statute of Limitations Lapses</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(49</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(1</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Gross Unrecognized Tax Benefits, End of the Period</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>340</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>271</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD> </TD></TR></TBODY></TABLE>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>The Company classifies interest and penalties associated with uncertain income tax positions as income taxes within its Consolidated Financial Statements. During the years ended December 31, 2008 and 2007, the Company recognized $23 million and $28 million of interest expense, respectively. The Company had approximately $65 million and $54 million of accrued interest, respectively, at December 31, 2008 and 2007, which were reported in Accounts Payable and Accrued Liabilities in the Consolidated Balance Sheets. These amounts are not included in the reconciliation above. As of December 31, 2008, the total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate was $193 million. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>The Company currently files income tax returns in the U.S. federal jurisdiction, various states, and foreign jurisdictions. The U.S. Internal Revenue Service (IRS) has completed exams on the consolidated income tax returns for fiscal years 2007 and prior. The Company’s 2008 tax return is under advance review by the IRS under its Compliance Assurance Program (CAP). With the exception of a few states, the Company is no longer subject to income tax examinations prior to 2002 in major state and foreign jurisdictions. The Company does not believe any adjustments that may result from these examinations will be significant. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>The Company believes it is reasonably possible that its liability for unrecognized tax benefits will decrease in the next twelve months by $138 million or less as a result of audit settlements and the expiration of statutes of limitations in certain major jurisdictions. </FONT></P>
<P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B>6. Property, Equipment and Capitalized Software </B></FONT></P>
<P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>A summary of property, equipment and capitalized software is as follows: </FONT></P>
<P style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px"> </P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0>
<TBODY>
<TR>
<TD width="78%"></TD>
<TD vAlign=bottom width="7%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD vAlign=bottom width="7%"></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR>
<TR>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px"><FONT face="Times New Roman" size=1><B>(in millions)</B></FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>December 31,<BR>2008</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>December 31,<BR>2007</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Land</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>32</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>37</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Buildings and Improvements</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>595</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>511</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Computer Equipment</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,488</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,064</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Furniture and Fixtures</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>250</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>205</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Less Accumulated Depreciation</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(1,353</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(757</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Property and Equipment, net</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,012</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,060</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Capitalized Software</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>2,179</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,882</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Less Accumulated Amortization</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(1,010</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>(821</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2>)</FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Capitalized Software, net</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,169</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,061</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Total Property, Equipment and Capitalized Software, net</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>2,181</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>2,121</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=2> </FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD> </TD></TR></TBODY></TABLE>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>Depreciation expense for property and equipment for 2008, 2007 and 2006 was $439 million, $359 million and $282 million, respectively. Amortization expense for capitalized software for 2008, 2007 and 2006 was $290 million, $245 million and $207 million, respectively. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B>17. Quarterly Financial Data (Unaudited) </B></FONT></P>
<P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>The following tables present selected quarterly financial information for all quarters of 2008 and 2007. </FONT></P>
<P style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px"> </P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0>
<TBODY>
<TR>
<TD width="60%"></TD>
<TD vAlign=bottom width="5%"></TD>
<TD></TD>
<TD></TD>
<TD vAlign=bottom width="5%"></TD>
<TD></TD>
<TD></TD>
<TD vAlign=bottom width="5%"></TD>
<TD></TD>
<TD></TD>
<TD vAlign=bottom width="5%"></TD>
<TD></TD>
<TD></TD></TR>
<TR>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=11><FONT face="Times New Roman" size=1><B>For the Quarter Ended</B></FONT></TD></TR>
<TR>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px"><FONT face="Times New Roman" size=1><B>(in millions, except per share data)</B></FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>March 31</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>June 30</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>September 30</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>December 31</B></FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2><B>2008</B></FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Revenues</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>20,304</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>20,272</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>20,156</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>20,454</FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Operating Costs</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>18,591</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>19,599</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>18,558</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>19,175</FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Earnings From Operations</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,713</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>673</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,598</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,279</FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Net Earnings</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>994</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>337</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>920</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>726</FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Basic Net Earnings per Common Share</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.80</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.28</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.76</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.61</FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Diluted Net Earnings per Common Share</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.78</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.27</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.75</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.60</FONT></TD></TR>
<TR>
<TD height=8></TD>
<TD colSpan=3 height=8></TD>
<TD colSpan=3 height=8></TD>
<TD colSpan=3 height=8></TD>
<TD colSpan=3 height=8></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2><B>2007</B></FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Revenues</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>19,047</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>19,000</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>18,679</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>18,705</FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Operating Costs</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>17,465</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>16,926</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>16,524</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>16,667</FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Earnings From Operations</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,582</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>2,074</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>2,155</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>2,038</FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Net Earnings</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>927</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,228</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,283</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>1,216</FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Basic Net Earnings per Common Share</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.69</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.93</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.98</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.95</FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Diluted Net Earnings per Common Share</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.66</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.89</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.95</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=2>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>0.92</FONT></TD></TR></TBODY></TABLE>
<P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B>16. Segment Financial Information </B></FONT></P>
<P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>Factors used in determining the Company’s reporting segments include the nature of operating activities, economic characteristics, existence of separate senior management teams and the type of information presented to the Company’s chief operating decision-maker to evaluate its results of operations. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>The Company’s accounting policies for reporting segment operations are the same as those described in the Summary of Significant Accounting Policies (see Note 2 of Notes to the Consolidated Financial Statements). Transactions between reporting segments principally consist of sales of pharmacy benefit products and services to Health Care Services by Prescription Solutions, certain product offerings sold to Health Care Services customers by OptumHealth and sales of medical benefits cost, quality and utilization data and predictive modeling to Health Care Services by Ingenix. These transactions are recorded at management’s estimate of fair value. Intersegment transactions are eliminated in consolidation. Assets and liabilities that are jointly used are assigned to each reporting segment using estimates of pro-rata usage. Cash and investments are assigned such that each reporting segment has at least minimum specified levels of regulatory capital or working capital for non-regulated businesses. </FONT></P><P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>Substantially all of the Company’s assets are held and operations are conducted in the United States. In accordance with accounting principles generally accepted in the United States, reporting segments with similar economic characteristics may be combined. The financial results of UnitedHealthcare, Ovations and AmeriChoice have been aggregated in the Health Care Services segment column in the following tables because these businesses have similar economic characteristics and have similar products and services, types of customers, distribution methods and operational processes, and operate in a similar regulatory environment. These businesses also share significant common assets, including the Company’s contracted networks of physicians, health care professionals, hospitals and other facilities, information technology infrastructure and other resources. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>Premium revenues from CMS were 25% of the Company’s total consolidated revenues for the twelve months ended December 31, 2008, 2007 and 2006, respectively. </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT size=1></FONT> </P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"> </P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>The following table presents reporting segment financial information as of and for the years ended December 31: </FONT></P>
<P style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px"> </P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0>
<TBODY>
<TR>
<TD width="39%"></TD>
<TD vAlign=bottom width="5%"></TD>
<TD></TD>
<TD></TD>
<TD vAlign=bottom width="5%"></TD>
<TD></TD>
<TD></TD>
<TD vAlign=bottom width="5%"></TD>
<TD></TD>
<TD></TD>
<TD vAlign=bottom width="5%"></TD>
<TD></TD>
<TD></TD>
<TD vAlign=bottom width="5%"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD vAlign=bottom width="5%"></TD>
<TD></TD>
<TD></TD></TR>
<TR>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px"><FONT face="Times New Roman" size=1><B>(in millions)</B></FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Health Care<BR>Services</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>OptumHealth</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Ingenix</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Prescription<BR>Solutions</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Corporate and<BR>Intersegment<BR>Eliminations</B></FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2><FONT face="Times New Roman" size=1><B>Consolidated</B></FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=1><B>2008</B></FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=1>Revenues — External Customers</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=1>Premiums</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>71,298</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>2,310</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1> — </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1> — </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1> — </FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>73,608</FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=1>Services</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>3,871</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>311</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>925</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>45</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>— </FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>5,152</FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=1>Products</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>— </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>— </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>95</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>1,560</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>— </FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>1,655</FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=1>Total Revenues — External Customers</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>75,169</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>2,621</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>1,020</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>1,605</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>— </FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>80,415</FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=1>Total Revenues — Intersegment</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>— </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>2,529</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>532</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>10,960</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>(14,021</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=1>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>— </FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=1>Investment and Other Income</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>688</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>75</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>— </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>8</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>— </FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>771</FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=1>Total Revenues</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>75,857</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>5,225</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>1,552</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>12,573</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>(14,021</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=1>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>81,186</FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=1>Earnings from Operations</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>5,068</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>718</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>229</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>363</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>(1,115</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=1>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>5,263</FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=1>Total Assets</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>46,459</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>4,195</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>1,755</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>2,603</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>803</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>55,815</FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=1>Purchases of Property, Equipment and Capitalized Software</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>522</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>100</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>112</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>57</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1> — </FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>791</FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=1>Depreciation and Amortization</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>691</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>120</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>105</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>65</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1> — </FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>981</FONT></TD></TR>
<TR>
<TD height=8></TD>
<TD colSpan=3 height=8></TD>
<TD colSpan=3 height=8></TD>
<TD colSpan=3 height=8></TD>
<TD colSpan=3 height=8></TD>
<TD colSpan=4 height=8></TD>
<TD colSpan=3 height=8></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=1><B>2007</B></FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=1>Revenues — External Customers</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=1>Premiums</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>66,625</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>2,156</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1> — </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1> — </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1> — </FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>68,781</FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=1>Services</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>3,530</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>292</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>767</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>19</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>— </FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>4,608</FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=1>Products</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>— </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>— </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>100</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>798</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>— </FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>898</FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=1>Total Revenues — External Customers</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>70,155</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>2,448</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>867</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>817</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>— </FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>74,287</FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=1>Total Revenues — Intersegment</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>— </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>2,385</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>437</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>12,420</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>(15,242</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=1>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>— </FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=1>Investment and Other Income</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>1,044</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>88</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>— </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>12</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>— </FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>1,144</FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=1>Total Revenues</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>71,199</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>4,921</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>1,304</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>13,249</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>(15,242</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=1>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>75,431</FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=1>Earnings from Operations</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>6,595</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>895</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>266</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>269</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>(176</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=1>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>7,849</FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=1>Total Assets</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>43,343</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>3,714</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>1,596</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>2,420</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>(174</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=1>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>50,899</FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=1>Purchases of Property, Equipment and Capitalized Software</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>623</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>108</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>121</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>19</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1> — </FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>871</FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=1>Depreciation and Amortization</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>559</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>111</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>81</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>45</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1> — </FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>796</FONT></TD></TR>
<TR>
<TD height=8></TD>
<TD colSpan=3 height=8></TD>
<TD colSpan=3 height=8></TD>
<TD colSpan=3 height=8></TD>
<TD colSpan=3 height=8></TD>
<TD colSpan=4 height=8></TD>
<TD colSpan=3 height=8></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=1><B>2006</B></FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=1>Revenues — External Customers</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom></TD>
<TD vAlign=bottom></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=1>Premiums</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>63,597</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>2,069</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1> — </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1> — </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1> — </FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>65,666</FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=1>Services</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>3,409</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>288</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>568</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>3</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>— </FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>4,268</FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=1>Products</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>5</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>— </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>85</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>647</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>— </FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>737</FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=1>Total Revenues — External Customers</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>67,011</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>2,357</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>653</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>650</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>— </FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>70,671</FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=1>Total Revenues — Intersegment</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>— </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>1,925</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>303</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>3,429</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>(5,657</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=1>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>— </FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=1>Investment and Other Income</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>806</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>60</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>— </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>5</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>— </FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>871</FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=1>Total Revenues</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>67,817</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>4,342</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>956</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>4,084</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>(5,657</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=1>)</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>71,542</FONT></TD></TR>
<TR style="FONT-SIZE: 1px">
<TD vAlign=bottom></TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD> </TD>
<TD vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD>
<TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=1>Earnings from Operations</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>5,860</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>809</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>176</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>139</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1> — </FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>6,984</FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=1>Total Assets</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>41,949</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>3,187</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>1,249</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>1,491</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>444</FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>48,320</FONT></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=1>Purchases of Property, Equipment and Capitalized Software</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>496</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>113</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>85</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>34</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1> — </FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>728</FONT></TD></TR>
<TR bgColor=#cceeff>
<TD vAlign=top>
<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=1>Depreciation and Amortization</FONT></P></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>480</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>89</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>68</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>33</FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1> — </FONT></TD>
<TD vAlign=bottom noWrap><FONT face="Times New Roman" size=1> </FONT></TD>
<TD vAlign=bottom><FONT size=1> </FONT></TD>
<TD vAlign=bottom><FONT face="Times New Roman" size=1>$</FONT></TD>
<TD vAlign=bottom align=right><FONT face="Times New Roman" size=1>670</FONT></TD></TR></TBODY></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B>2. Basis of Presentation and Summary of Significant Accounting Policies </B></FONT></P>
<P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Basis of Presentation </I></B></FONT></P>
<P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>The Company has prepared the Consolidated Financial Statements according to U.S. Generally Accepted Accounting Principles (GAAP) and has included the accounts of UnitedHealth Group and its subsidiaries. Certain prior year amounts have been reclassified to conform to current year presentation. The Company has eliminated intercompany balances and transactions. </FONT></P>
<P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Use of Estimates </I></B></FONT></P>
<P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>These Consolidated Financial Statements include certain amounts that are based on the Company’s best estimates and judgments. These estimates require the application of complex assumptions and judgments, often because they involve matters that are inherently uncertain and will likely change in subsequent periods. The Company’s most significant estimates relate to medical costs, medical costs payable, revenues, goodwill, other intangible assets, investments and contingent liabilities. The Company adjusts these estimates each period, as more current information becomes available. The impact of any changes in estimates is included in the determination of earnings in the period in which the estimate is adjusted. </FONT></P>
<P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Revenues </I></B></FONT></P>
<P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>Premium revenues are primarily derived from risk-based health insurance arrangements in which the premium is fixed, typically for a one-year period, and the Company assumes the economic risk of funding its customers’ health care services and related administrative costs. The Company recognizes premium revenues in the period in which eligible individuals are entitled to receive health care services. The Company records health care premium payments received from its customers in advance of the service period as unearned premiums. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>CMS deploys a risk adjustment model which apportions premiums paid to all health plans according to health severity and certain demographic factors. The CMS risk adjustment model pays more for members whose medical history would indicate are expected to have higher medical costs. Under this risk adjustment </FONT><FONT face="Times New Roman" size=2>methodology, CMS calculates the risk adjusted premium payment using diagnosis data from hospital inpatient, hospital outpatient and physician treatment settings. The Company and health care providers collect, capture, and submit the necessary and available diagnosis data to CMS within prescribed deadlines. The Company estimates risk adjustment revenues based upon the diagnosis data submitted and expected to be submitted to CMS. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>Service revenues consist primarily of fees derived from services performed for customers that self-insure the medical costs of their employees and their dependants. Under service fee contracts, the Company recognizes revenue in the period the related services are performed based upon the fee charged to the customer. The customers retain the risk of financing medical benefits for their employees and employees’ dependants, and the Company administers the payment of customer funds to physicians and other health care professionals from customer-funded bank accounts. Because the Company neither has the obligation for funding the medical expenses, nor the responsibility for providing the medical care, the Company does not recognize premium revenue and medical costs for these contracts in its Consolidated Financial Statements. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>For both premium risk-based and fee-based customer arrangements, the Company provides coordination and facilitation of medical services; transaction processing; customer, consumer and care professional services; and access to contracted networks of physicians, hospitals and other health care professionals. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>Through the Company’s Prescription Solutions pharmacy benefits management (PBM) business, revenues are derived from products sold through a contracted network of retail pharmacies, and from administrative services, including claims processing and formulary design and management. Product revenues include ingredient costs (net of rebates), a negotiated dispensing fee and customer co-payments for drugs dispensed through the Company’s mail-service pharmacy. In all retail pharmacy transactions, revenues recognized always exclude the member’s applicable co-payment. Product revenues are recognized upon sale or shipment. Service revenues are recognized when the prescription claim is adjudicated. The Company has entered into retail service contracts that separately obligate it to pay its network pharmacy providers for benefits provided to their customers, whether or not the Company is paid. The Company is also involved in establishing the prices charged by retail pharmacies, determining which drugs will be included in formulary listings and selecting which retail pharmacies will be included in the network offered to plan sponsors’ members. As a result, revenues are reported on a gross basis in accordance with Emerging Issues Task Force (EITF) Issue No. 99-19, “Reporting Gross Revenue as a Principal versus Net as an Agent.” Product revenues also include sales of Ingenix publishing and software products which are recognized as revenue upon shipment. </FONT></P><P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Medical Costs and Medical Costs Payable </I></B></FONT></P>
<P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>Medical costs and medical costs payable include estimates of the Company’s obligations for medical care services that have been rendered on behalf of insured consumers but for which the Company has either not yet received or processed claims, and for liabilities for physician, hospital and other medical cost disputes. The Company develops estimates for medical costs incurred but not reported using an actuarial process that is consistently applied, centrally controlled and automated. The actuarial models consider factors such as time from date of service to claim receipt, claim backlogs, care professional contract rate changes, medical care consumption and other medical cost trends. The Company estimates liabilities for physician, hospital and other medical cost disputes based upon an analysis of potential outcomes, assuming a combination of litigation and settlement strategies. Each period, the Company re-examines previously established medical costs payable estimates based on actual claim submissions and other changes in facts and circumstances. As the liability estimates recorded in prior periods become more exact, the Company adjusts the amount of the estimates, and includes the changes in estimates in medical costs in the period in which the change is identified. In every </FONT><FONT face="Times New Roman" size=2>reporting period, the Company’s operating results include the effects of more completely developed medical costs payable estimates associated with previously reported periods. </FONT></P><P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Cash, Cash Equivalents and Investments </I></B></FONT></P>
<P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>Cash and cash equivalents are highly liquid investments that have an original maturity of three months or less. The fair value of cash and cash equivalents approximates their carrying value because of the short maturity of the instruments. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>During the fourth quarter of 2008, the Company changed its intent with respect to offsetting cash balances, which affected its balances in checks outstanding in excess of bank deposits for certain cash balances. As of December 31, 2008, the Company had checks outstanding in excess of bank deposits of $1.2 billion, which were reclassified from Cash and Cash Equivalents to Accounts Payable and Accrued Liabilities in the Consolidated Balance Sheets and have been reflected as Checks Outstanding in the Consolidated Statements of Cash Flows. There were no checks outstanding in excess of bank deposits as of December 31, 2007. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>Investments with maturities of less than one year are classified as short-term. Because of regulatory requirements, certain investments are included in long-term investments regardless of their maturity date. The Company classifies these investments as held-to-maturity and reports them at amortized cost. Substantially all other investments are classified as available-for-sale and reported at fair value based on quoted market prices, where available. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>The Company excludes unrealized gains and losses on investments in available-for-sale securities from earnings and reports them, net of income tax effects, as a separate component of shareholders’ equity. The Company continually monitors the difference between the cost and estimated fair value of its investments. For those investments in an unrealized loss position, the Company analyzes relevant factors individually and in combination including the length of time and extent to which market value has been less than cost, the financial condition and near-term prospects of the issuer as well as specific events or circumstances that may influence the operations of the issuer, and the Company’s intent and ability to hold the investment for a sufficient time to recover its cost. New information and the passage of time can change these judgments. The Company revises impairment judgments when new information becomes known or when it does not anticipate holding the investment until the forecasted recovery. If any of the Company’s investments experience a decline in value that is determined to be other-than-temporary, based on analysis of relevant factors, the Company records a realized loss in Investment and Other Income in its Consolidated Statements of Operations. The amortization of premiums and accretion of discounts are recorded utilizing the effective yield (interest) method, over the period from the date of purchase to maturity or call date, whichever produces the lowest yield. For asset-backed securities included in debt securities, the Company recognizes income using an effective yield based on anticipated prepayments and the estimated economic life of the securities. When estimates of prepayments change, the effective yield is recalculated to reflect actual payments to date and anticipated future payments. The net investment in the securities is adjusted to the amount that would have existed had the new effective yield been applied since the acquisition of the securities. These adjustments are reflected in Investment and Other Income in the period of change. The Company manages its investment portfolio to limit its exposure to any one issuer or market sector, and largely limit its investments to U.S. Government and Agency securities, state and municipal securities, asset-backed, and corporate debt obligations, all of investment grade quality. If securities are downgraded below policy minimums, subsequent to purchase, they will be disposed of in accordance with the investment policy. To calculate realized gains and losses on the sale of investments, the Company uses the specific cost or amortized cost of each investment sold. </FONT></P><P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT size=1> </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Assets Under Management </I></B></FONT></P>
<P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>The Company administers certain aspects of AARP’s insurance program (see Note 13 of Notes to the Consolidated Financial Statements). Pursuant to the Company’s agreement, AARP assets are managed separately from its general investment portfolio and are used to pay costs associated with the AARP program. These assets are invested at the Company’s discretion, within investment guidelines approved by AARP. The Company does not guarantee any rates of return on these investments and, upon transfer of the AARP contract to another entity, the Company would transfer cash equal in amount to the fair value of these investments at the date of transfer to that entity. Because the purpose of these assets is to fund the medical costs payable, the rate stabilization fund (RSF) liabilities and other related liabilities associated with the AARP contract, assets under management are classified as current assets, consistent with the classification of these liabilities. Interest earnings and realized investment gains and losses on these assets accrue to the overall benefit of the AARP policyholders through the RSF. Accordingly, they are not included in the Company’s earnings. </FONT></P><P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Other Current Receivables </I></B></FONT></P>
<P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>Other current receivables include proceeds due from pharmacy rebates, CMS for Medicare Part D, reinsurance and other miscellaneous amounts due to the Company. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>The Company’s PBM companies contract with pharmaceutical manufacturers, some of whom provide rebates based on use of the manufacturers’ products by its PBM companies’ affiliated and non-affiliated clients. The Company accrues rebates as they are earned by its clients on a monthly basis based on the terms of the applicable contracts, historical data and current estimates. The PBM companies bill these rebates to the manufacturers on a monthly or quarterly basis depending on the contractual terms. The Company records rebates attributable to affiliated clients as a reduction to medical costs. Rebates attributable to non-affiliated clients are accrued as rebates receivable and a reduction of cost of products sold with a corresponding payable for the amounts of the rebates to be remitted to non-affiliated clients in accordance with their contracts and posted to the Consolidated Statements of Operations as a reduction of Product Revenue. The Company generally receives rebates between two to five months after billing. </FONT></P><P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>For details on the Company’s Medicare Part D receivables see “Medicare Part D Pharmacy Benefits Contract” below. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>For details on the Company’s reinsurance receivable see “Future Policy Benefits and Reinsurance Receivables” below. </FONT></P>
<P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Medicare Part D Pharmacy Benefits Contract </I></B></FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>The Company serves as a plan sponsor offering Medicare Part D prescription drug insurance coverage under contracts with the Centers for Medicare and Medicaid Services (CMS). Under the Medicare Part D program, there are six separate elements of payment received by the Company during the plan year. These payment elements are as follows: </FONT></P>
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<P align=left><FONT face="Times New Roman" size=2><I>CMS Premium</I> — CMS pays a fixed monthly premium per member to the Company for the entire plan year. </FONT></P></TD></TR></TBODY></TABLE>
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<P align=left><FONT face="Times New Roman" size=2><I>Member Premium</I> — Additionally, certain members pay a fixed monthly premium to the Company for the entire plan year. </FONT></P></TD></TR></TBODY></TABLE>
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<P align=left><FONT face="Times New Roman" size=2><I>Low-Income Premium Subsidy</I> — For qualifying low-income members, CMS pays some or all of the member’s monthly premiums to the Company on the member’s behalf. </FONT></P></TD></TR></TBODY></TABLE>
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<P align=left><FONT face="Times New Roman" size=2><I>Catastrophic Reinsurance Subsidy</I> — CMS pays the Company a cost reimbursement estimate monthly to fund the CMS obligation to pay approximately 80% of the costs incurred by individual members in excess</FONT></P></TD></TR></TBODY></TABLE>
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<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px; MARGIN-LEFT: 0%"><FONT face="Times New Roman" size=2>of the individual annual out-of-pocket maximum. A settlement is made with CMS based on actual cost experience, subsequent to the end of the plan year. </FONT></P></TD></TR></TBODY></TABLE>
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<P align=left><FONT face="Times New Roman" size=2><I>Low-Income Member Cost Sharing Subsidy</I> — For qualifying low-income members, CMS pays on the member’s behalf some or all of a member’s cost sharing amounts, such as deductibles and coinsurance. The cost sharing subsidy is funded by CMS through monthly payments to the Company. The Company administers and pays the subsidized portion of the claims on behalf of CMS, and a settlement payment is made between CMS and the Company based on actual claims and premium experience, subsequent to the end of the plan year. </FONT></P></TD></TR></TBODY></TABLE>
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<P align=left><FONT face="Times New Roman" size=2><I>CMS Risk-Share</I> — Premiums from CMS are subject to risk corridor provisions which compare costs targeted in the Company’s annual bids to actual prescription drug costs, limited to actual costs that would have been incurred under the standard coverage as defined by CMS. Variances of more than 5% above or below the original bid submitted by the Company may result in CMS making additional payments to the Company or require the Company to refund to CMS a portion of the premiums it received. The Company estimates and recognizes an adjustment to premium revenues related to the risk corridor payment settlement based upon pharmacy claims experience. The estimate of the settlement associated with these risk corridor provisions requires the Company to consider factors that may not be certain, including member eligibility status differences with CMS. The risk-share adjustment, if any, is recorded as an adjustment to premium revenues and other current assets or liabilities. </FONT></P></TD></TR></TBODY></TABLE><P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>The CMS Premium, the Member Premium, and the Low-Income Premium Subsidy represent payments for the Company’s insurance risk coverage under the Medicare Part D program and therefore are recorded as Premium Revenues in the Consolidated Statements of Operations. Premium revenues are recognized ratably over the period in which eligible individuals are entitled to receive prescription drug benefits. The Company records premium payments received in advance of the applicable service period in Unearned Premiums in the Consolidated Balance Sheets. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>The Catastrophic Reinsurance Subsidy and the Low-Income Member Cost Sharing Subsidy represent cost reimbursements under the Medicare Part D program. The Company is fully reimbursed by CMS for costs incurred for these contract elements and accordingly, there is no insurance risk to the Company. Amounts received for these subsidies are not reflected as premium revenues, but rather are accounted for as deposits within Other Policy Liabilities in the Consolidated Balance Sheets. Related cash flows are presented as Customer Funds Administered within financing activities in the Consolidated Statements of Cash Flows. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>As of December 31, 2008, there was a receivable for the Catastrophic Reinsurance Subsidy and the Low-Income Member Cost Sharing Subsidy of $349 million recorded in Other Current Receivables in the Consolidated Balance Sheets. As of December 31, 2007, there were amounts on deposit for these subsidies of approximately $340 million recorded in Other Policy Liabilities in the Consolidated Balance Sheets. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>Pharmacy benefit costs and administrative costs under the contract are expensed as incurred and are recognized in Medical Costs and Operating Costs, respectively, in the Consolidated Statements of Operations. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>As a result of the Medicare Part D product benefit design, the Company incurs a disproportionate amount of pharmacy benefit costs early in the contract year. While the Company is responsible for approximately 67% of a Medicare Part D beneficiary’s drug costs up to the initial coverage limit, the beneficiary is responsible for 100% of their drug costs from the initial coverage limit to the out-of-pocket maximum. Consequently, the Company incurs a disproportionate amount of pharmacy benefit costs in the first half of the contract year as compared with the last half of the contract year, when comparatively more members will be incurring claims above the initial </FONT><FONT face="Times New Roman" size=2>coverage limit. The uneven timing of Medicare Part D pharmacy benefit claims results in losses in the first half of the year that, if they continued at that pace for the rest of the year, would entitle the Company to risk-share adjustment payments from CMS. Accordingly, during the interim periods within the contract year, the Company records a net risk-share receivable from CMS in Other Current Receivables in the Consolidated Balance Sheets and a corresponding retrospective premium adjustment in Premium Revenues in the Consolidated Statements of Operations. This represents the estimated amount payable by CMS to the Company under the risk-share contract provisions if the program were terminated based on estimated costs incurred through that interim period. Typically, those losses are expected to reverse in the second half of the year. </FONT></P><P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>The final 2008 risk-share amount is expected to be settled during the second half of 2009, and is subject to the reconciliation process with CMS. The net risk-share receivable from CMS of $19 million was recorded in Other Current Receivables in the Consolidated Balance Sheets as of December 31, 2008. As of December 31, 2007, there was a net risk-share payable of approximately $280 million recorded in Other Policy Liabilities in the Consolidated Balance Sheets. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>As of January 1, 2009, certain changes were made to the Medicare Part D coverage by CMS, including: </FONT></P>
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<P align=left><FONT face="Times New Roman" size=2>The initial coverage limit increased to $2,700. </FONT></P></TD></TR></TBODY></TABLE>
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<P align=left><FONT face="Times New Roman" size=2>The catastrophic coverage begins at $6,154. </FONT></P></TD></TR></TBODY></TABLE>
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<TD vAlign=top align=left width="2%"><FONT face="Times New Roman" size=2>•</FONT></TD>
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<P align=left><FONT face="Times New Roman" size=2>The annual out-of-pocket maximum increased to $4,350. </FONT></P></TD></TR></TBODY></TABLE>
<P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Property, Equipment and Capitalized Software </I></B></FONT></P>
<P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>Property, equipment and capitalized software are stated at cost, net of accumulated depreciation and amortization. Capitalized software consists of certain costs incurred in the development of internal-use software, including external direct costs of materials and services and payroll costs of employees devoted to specific software development. The Company reviews property, equipment and capitalized software for events or changes in circumstances that would indicate that we might not recover their carrying value. If the Company determines that an asset may not be recoverable, an impairment charge is recorded. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>The Company calculates depreciation and amortization using the straight-line method over the estimated useful lives of the assets. The useful lives for property, equipment and capitalized software are: </FONT></P>
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<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Furniture, fixtures and equipment</FONT></P></TD>
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<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>3 to 7 years</FONT></TD></TR>
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<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Buildings</FONT></P></TD>
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<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>35 to 40 years</FONT></TD></TR>
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<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Leasehold improvements</FONT></P></TD>
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<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>Shorter of useful life or remaining lease term</FONT></TD></TR>
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<P style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><FONT face="Times New Roman" size=2>Capitalized software</FONT></P></TD>
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<TD vAlign=bottom align=right><FONT face="Times New Roman" size=2>3 to 9 years</FONT></TD></TR></TBODY></TABLE>
<P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Goodwill </I></B></FONT></P>
<P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>Goodwill represents the amount by which the purchase price of businesses the Company has acquired exceeds the estimated fair value of the net tangible assets and separately identifiable intangible assets of these businesses. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>In accordance with FAS 142, “Goodwill and Other Intangible Assets,” the Company tests goodwill for impairment at the reporting unit level (operating segment or one level below an operating segment) on January 1st of each year or more frequently if it believes indicators of impairment exist. The Company has eleven reporting units at December 31, 2008. The performance of the test involves a two-step process. The first step of the impairment test involves comparing the fair values of the applicable reporting units with their aggregate carrying values, </FONT><FONT face="Times New Roman" size=2>including goodwill. The Company generally determines the fair value of its reporting units utilizing a discounted cash flow method, an income approach. If the carrying amount of a reporting unit exceeds the reporting unit’s fair value, the Company performs the second step of the goodwill impairment test to determine the amount of impairment loss. The second step of the goodwill impairment test involves comparing the implied fair value of the affected reporting unit’s goodwill with the carrying value of that goodwill. </FONT></P><P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>The income approach utilized by the Company requires the use of various estimates and assumptions, the most significant of which include forecasted cash flows, weighted average cost of capital, terminal value, long-term growth rates, and working capital requirements. The Company conducted its most recent impairment test on January 1, 2009 and has determined there to be no impairment of the carrying values of goodwill as of December 31, 2008. </FONT></P>
<P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Other Intangible Assets </I></B></FONT></P>
<P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>Intangible assets with discrete useful lives are amortized on a straight-line basis over their estimated useful lives unless another method can be reasonably determined. Intangible assets are reviewed for events or changes in circumstances that would indicate an asset’s carrying value exceeds its estimated fair value in which case an impairment charge would be recorded. The Company considers many factors, including estimated future utility and cash flows associated with the assets, to make this decision. There were no material impairments at December 31, 2008. </FONT></P>
<P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Other Policy Liabilities </I></B></FONT></P>
<P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>Other policy liabilities include the RSF associated with the AARP program (see Note 13 of Notes to the Consolidated Financial Statements), deposits under the Medicare Part D program (see “Medicare Part D Pharmacy Benefits Contract” above), customer balances related to experience-rated insurance products and the current portion of future policy benefits. Customer balances represent excess customer payments and deposit accounts under experience-rated contracts. At the customer’s option, these balances may be refunded or used to pay future premiums or claims under eligible contracts. </FONT></P>
<P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Income Taxes </I></B></FONT></P>
<P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>Deferred income tax assets and liabilities are recognized for the differences between the financial and income tax reporting bases of assets and liabilities based on enacted tax rates and laws. The deferred income tax provision or benefit generally reflects the net change in deferred income tax assets and liabilities during the year, excluding any deferred income tax assets and liabilities of acquired businesses. The current income tax provision reflects the tax consequences of revenues and expenses currently taxable or deductible on various income tax returns for the year reported. </FONT></P>
<P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Future Policy Benefits and Reinsurance Receivables </I></B></FONT></P>
<P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>Future policy benefits represent account balances that accrue to the benefit of the policyholders, excluding surrender charges, for universal life and investment annuity products and health policies sold to individuals for which some of the premium received in the earlier years is intended to pay benefits to be incurred in future years. As a result of the 2005 sale of the life and annuity business within the Company’s Golden Rule Financial Corporation (Golden Rule) subsidiary under an indemnity reinsurance arrangement, the Company has maintained a liability associated with the reinsured contracts, as it remains primarily liable to the policyholders, and has recorded a corresponding reinsurance receivable due from the purchaser. As of December 31, 2008, the </FONT><FONT face="Times New Roman" size=2>Company had an aggregate $2.0 billion reinsurance receivable, of which $154 million was recorded in Other Current Receivables and $1.9 billion was recorded in Other Assets in the Consolidated Balance Sheets. As of December 31, 2007, the Company had an aggregate $2.0 billion reinsurance receivable, of which $167 million was recorded in Other Current Receivables and $1.8 billion was recorded in Other Assets in the Consolidated Balance Sheets. The Company evaluates the financial condition of the reinsurer and only records the reinsurance receivable to the extent of probable recovery. </FONT></P><P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Policy Acquisition Costs </I></B></FONT></P>
<P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>The Company’s commercial health insurance contracts typically have a one-year term and may be cancelled by the customer with at least 31 days notice. Costs related to the acquisition and renewal of commercial customer contracts are charged to expense as incurred. </FONT></P>
<P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Share-Based Compensation </I></B></FONT></P>
<P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>The Company accounts for share-based compensation in accordance with Statement of Financial Accounting Standards (FAS) No. 123 (revised 2004), “Share-Based Payment” (FAS 123R) under the modified retrospective method of adoption. Under the fair value recognition provisions of this statement, share-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense over the period in which the share-based compensation vests. </FONT></P>
<P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Net Earnings Per Common Share </I></B></FONT></P>
<P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>The Company computes basic net earnings per common share by dividing net earnings by the weighted-average number of common shares outstanding during the period. The Company determines diluted net earnings per common share using the weighted-average number of common shares outstanding during the period, adjusted for potentially dilutive shares associated with the exercise of common stock options, stock-settled stock appreciation rights (SARs) and the conversion of convertible subordinated debentures. </FONT></P>
<P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Derivative Financial Instruments </I></B></FONT></P>
<P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>As part of the Company’s risk management strategy, the Company enters into interest rate swap agreements with financial institutions to manage the impact of market interest rates on interest expense. The differential between the fixed rates received and the variable rates paid is accrued and recognized over the life of the agreements as an adjustment to interest expense in the Consolidated Statements of Operations. The Company’s swap agreements converted a majority of its interest expense from fixed to variable rates to better offset the impact of market rates on its variable rate cash equivalent investments and are accounted for under the short-cut method as fair value hedges. Additional information on the Company’s derivative financial instruments is included in Note 9 of Notes to the Consolidated Financial Statements. </FONT></P>
<P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Recent Accounting Standards </I></B></FONT></P>
<P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Recently Adopted Accounting Standards. </I></B>In February 2007, the FASB issued FAS No. 159, “The Fair Value Option for Financial Assets and Financial Liabilities — Including an amendment of FASB Statement No. 115” (FAS 159). FAS 159 expands the use of fair value accounting but does not affect existing standards that require assets or liabilities to be carried at fair value. Under FAS 159, a company may elect to use fair value to measure various assets and liabilities including accounts receivable, available-for-sale and held-to-maturity securities, equity method investments, accounts payable, guarantees and issued debt. The fair value election is irrevocable </FONT><FONT face="Times New Roman" size=2>and generally made on an instrument-by-instrument basis, even if a company has similar instruments that it elects not to measure based on fair value. The Company adopted FAS 159 as of January 1, 2008 and elected the fair value option for the AARP Assets Under Management on the Consolidated Balance Sheet at that date. The impact of adoption of FAS 159 was not material to the Company. For a discussion of the instruments for which the fair value option was applied, see Note 13 of Notes to the Consolidated Financial Statements. </FONT></P><P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>In September 2006, the FASB issued FAS No. 157, “Fair Value Measurements” (FAS 157). FAS 157 establishes a framework for measuring fair value. It does not require any new fair value measurements, but does require expanded disclosures to provide information about the extent to which fair value is used to measure assets and liabilities, the methods and assumptions used to measure fair value, and the effect of fair value measures on earnings. FAS 157 is effective for financial assets and liabilities measured at fair value in the Company’s Consolidated Financial Statements. In February 2008, the FASB issued FASB Staff Position FAS 157-2, “Effective Date of FASB Statement No. 157” (FSP 157-2). FSP 157-2 delayed the effective date of FAS 157 for all nonfinancial assets and liabilities for one year, except those that are measured at fair value in the financial statements on at least an annual basis. The Company adopted FAS 157 as of January 1, 2008, except for those provisions deferred under FSP 157-2. The deferred provisions of FAS 157, which apply primarily to goodwill and other intangible assets for annual impairment testing purposes, will be effective in 2009. The Company does not expect the adoption of the deferred provisions of FAS 157 will have a material impact on its Consolidated Financial Statements. See Note 5 of Notes to the Consolidated Financial Statements for additional discussion. </FONT></P><P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Recently Issued Accounting Standards. </I></B>In April 2008, the FASB issued FASB Staff Position FAS 142-3, “Determination of the Useful Life of Intangible Assets” (FSP 142-3). FSP 142-3 amends the factors to be considered in developing renewal and extension assumptions used to determine the useful life of a recognized intangible asset accounted for under FAS No. 142, “Goodwill and Other Intangible Assets.” FSP 142-3 is effective for the Company’s fiscal year 2009 and must be applied prospectively to intangible assets acquired after January 1, 2009. Early adoption is not permitted. The Company does not expect the adoption of FSP 142-3 will have a material impact on its Consolidated Financial Statements. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>In December 2007, the FASB issued FAS No. 141 (Revised 2007), “Business Combinations” (FAS 141R), which replaces FAS No. 141, “Business Combinations.” FAS 141R establishes principles and requirements for how an acquirer recognizes and measures in its financial statements the identifiable assets acquired, the liabilities assumed, any noncontrolling interest in the acquiree and the goodwill acquired. The statement also establishes disclosure requirements that will enable users to evaluate the nature and financial effects of the business combination. FAS 141R is effective for the Company’s fiscal year 2009 and must be applied prospectively to all new acquisitions closing on or after January 1, 2009. Early adoption of this standard is not permitted. The Company does not expect the adoption of FAS 141R will have a material impact on its Consolidated Financial Statements. </FONT></P><P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>In December 2007, the FASB issued FAS No. 160, “Noncontrolling Interests in Consolidated Financial Statements — An Amendment of ARB No. 51” (FAS 160). FAS 160 requires that accounting and reporting for minority interests be recharacterized as noncontrolling interests and classified as a component of equity. The standard is effective for the Company’s fiscal year 2009 and must be applied prospectively. The Company does not expect the adoption of FAS 160 will have a material impact on its Consolidated Financial Statements. </FONT></P>
<P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B>11. Shareholders’ Equity </B></FONT></P>
<P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Regulatory Capital and Dividend Restrictions </I></B></FONT></P>
<P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>The Company conducts a significant portion of its operations through subsidiaries that are subject to regulations and standards established by their respective states of domicile. Most of these regulations and standards conform </FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>to those established by the National Association of Insurance Commissioners. These standards, among other things, require these subsidiaries to maintain specified levels of statutory capital, as defined by each state, and restrict the timing and amount of dividends and other distributions that may be paid to their parent companies. Generally, the amount of dividend distributions that may be paid by a regulated subsidiary, without prior approval by state regulatory authorities, is limited based on the entity’s level of statutory net income and statutory capital and surplus. </FONT></P>
<P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>In 2008, based on the 2007 statutory net income and statutory capital and surplus levels, the maximum amount of dividends which could be paid without prior regulatory approval was $3.0 billion. As of December 31, 2008, the Company’s regulated subsidiaries have paid their parent companies dividends of $4.2 billion, including $1.2 billion of extraordinary dividends approved by state insurance regulators. In 2007, the maximum amount of dividends which could be paid without prior regulatory approval was $2.5 billion. $2.9 billion was paid to their parent companies, including $400 million of extraordinary dividends approved by state insurance regulators. At December 31, 2008, approximately $865 million of the Company’s $21.6 billion of cash and investments was held by non-regulated subsidiaries and was available for general corporate use, including acquisitions and share repurchases. </FONT></P><P style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>The Company’s regulated subsidiaries had aggregate statutory capital and surplus of approximately $10 billion as of December 31, 2008, which is significantly more than the aggregate minimum regulatory requirements. </FONT></P>
<P style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2><B><I>Share Repurchase Program </I></B></FONT></P>
<P style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><FONT face="Times New Roman" size=2>Under its Board of Directors’ authorization, the Company maintains a share repurchase program (the Repurchase Program). The objectives of the Repurchase Program are to optimize the Company’s capital structure and cost of capital thereby improving returns to shareholders, as well as to offset the dilutive impact of share-based awards. Repurchases may be made from time to time at prevailing prices. During 2008, the Company repurchased 72 million shares at an average price of approximately $37 per share and an aggregate cost of approximately $2.7 billion. At December 31, 2008, the Company had Board of Directors’ authorization to purchase up to an additional 103 million shares of its common stock. </FONT></P>
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