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<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>NOTE 12. COMMITMENTS AND CONTINGENCIES</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><b>LITIGATION</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We are involved in litigation or proceedings that have arisen in our ordinary business
activities. We insure against these risks to the extent deemed prudent by our management and to
the extent insurance is available, but no assurance can be given that the nature and amount of that
insurance will be sufficient to fully indemnify us against liabilities arising out of pending and
future legal proceedings. Many of these insurance policies contain deductibles or self-insured
retentions in amounts we deem prudent and for which we are responsible for payment. In determining
the amount of self-insurance, it is our policy to self-insure those
losses that are predictable,
measurable and recurring in nature, such as claims for automobile liability, general liability and
workers compensation. The accruals for losses are calculated by estimating losses for claims using
historical claim data, specific loss development factors and other information as necessary.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>OTHER</b>
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<div align="left" style="font-size: 10pt; margin-top: 6pt">     In the normal course of business with customers, vendors and others, we have entered into
off-balance sheet arrangements, such as surety bonds for performance, letters of credit and other
bank issued guarantees, which totaled approximately $1.21 billion at March 31, 2011. None of the
off-balance sheet arrangements either has, or is likely to have, a material effect on our
consolidated condensed financial statements.
</div>
</div>
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