0001037868
2007-12-31
0001037868
2008-06-30
0001037868
2009-07-30
0001037868
2009-06-30
0001037868
2008-12-31
0001037868
2009-04-01
2009-06-30
0001037868
2008-04-01
2008-06-30
0001037868
2008-01-01
2008-06-30
0001037868
2009-01-01
2009-06-30
iso4217:USD
xbrli:shares
xbrli:shares
iso4217:USD
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<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>1. Basis of Presentation</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The accompanying consolidated financial statements are unaudited. The Company believes that
all adjustments (which primarily consist of normal recurring accruals) necessary for a fair
presentation of the consolidated financial position of the Company at June 30, 2009, the
consolidated results of its operations for the three and six months ended June 30, 2009 and 2008
and its cash flows for the six months ended June 30, 2009 and 2008 have been included. Quarterly
results of operations are not necessarily indicative of results for the full year. The accompanying
financial statements should be read in conjunction with the financial statements and related notes
presented in the Company’s Annual Report on Form 10-K for the year ended December 31, 2008 as filed
with the Securities and Exchange Commission.
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<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>2. Recent Accounting Pronouncements</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Effective January 1, 2009, the Company adopted Statement of Financial Accounting Standards
(“SFAS”) No. 141(R), <i>Business Combinations </i>(“SFAS 141R”). SFAS 141R retains the underlying concepts
of SFAS No. 141 <i>Business Combinations</i>, but changes the method of applying the acquisition method in
a number of significant aspects. SFAS 141R is effective on a prospective basis for all
acquisitions on or after January 1, 2009. SFAS 141R amends SFAS No. 109, <i>Accounting for Income
Taxes</i>, such that adjustments made to valuation allowances on deferred taxes and acquired tax
contingencies associated with acquisitions that closed prior to the effective date of SFAS 141R
would also apply the provisions of SFAS 141R. The adoption of SFAS 141R did not have a significant
impact on the Company’s consolidated results of operations, financial position or cash flows.
However, depending on the nature of an acquisition or the quantity of acquisitions entered into
after the adoption, SFAS 141R may significantly impact the Company’s consolidated results of
operations, financial position or cash flows and result in more earnings volatility and generally
lower earnings due to, among other items, the expensing of transaction costs and restructuring
costs of acquired companies.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In April 2009, the Financial Accounting Standards Board (“FASB”) issued FASB Staff Position
(“FSP”) No. FAS 157-4, <i>Determining Fair Value When the Volume and Level of Activity for the Asset
or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly </i>(“FSP
FAS 157-4”). FSP FAS 157-4 amends SFAS No. 157, <i>Fair Value Measurements </i>(“SFAS 157”), and provides
additional guidance for estimating fair value in accordance with SFAS 157 when the volume and level
of activity for the asset or liability have significantly decreased and also includes guidance on
identifying circumstances that indicate a transaction is not orderly for fair value measurements.
This FSP is applied prospectively with retrospective application not permitted. This FSP is
effective for interim and annual periods ending after June 15, 2009. The adoption of FSP FAS 157-4
did not have a significant impact on the Company’s consolidated results of operations, financial
position and cash flows.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In April 2009, the FASB issued FSP FAS 115-2 and FAS 124-2. This FSP amends SFAS No. 115,
<i>Accounting for Certain Investments in Debt and Equity Securities</i>, SFAS No. 124, <i>Accounting for
Certain Investments Held by Not-for-Profit Organizations </i>and Emerging Issues Task Force (“EITF”)
Issue No. 99-20, <i>Recognition of Interest Income and Impairment on Purchased Beneficial Interests
and Beneficial Interests That Continue to Be Held by a Transferor in Securitized Financial Assets</i>,
to make the other-than-temporary impairments guidance more operational and to improve the
presentation of other-than-temporary impairments in the financial statements. This FSP replaces the
existing requirement that the entity’s management assert it has both the intent and ability to hold
an impaired debt security until recovery with a requirement that management assert it does not have
the intent to sell the security, and it is more likely than not it will not have to sell the
security before recovery of its cost basis. This FSP provides increased disclosure about the credit
and noncredit components of impaired debt securities that are not expected to be sold and also
requires increased and more frequent disclosures regarding expected cash flows, credit losses and
an aging of securities with unrealized losses. Although this FSP does not result in a change in the
carrying amount of debt securities, it does require that the portion of an other-than-temporary
impairment not related to a credit loss for a held-to-maturity security be recognized in a new
category of other comprehensive income and be amortized over the remaining life of the debt
security as an increase in the carrying value of the security. This FSP is
effective for interim
and annual periods ending after June 15, 2009. The adoption of FSP FAS 115-2 and FAS 124-2 did not
have a significant impact on the Company’s consolidated results of operations, financial position
and cash flows.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In April 2009, the FASB issued FSP FAS 107-1 and APB 28-1. This FSP amends SFAS No. 107,
<i>Disclosures about Fair Value of Financial Instruments </i>(“SFAS 107”), to require disclosures about
fair value of financial instruments not measured on the balance
sheet at fair value in interim financial statements as well as in annual financial statements.
Prior to this FSP, fair values for these assets and liabilities were only disclosed annually. This
FSP applies to all financial instruments within the scope of SFAS 107 and requires all entities to
disclose the methods and significant assumptions used to estimate the fair value of financial
instruments. This FSP is effective for interim periods ending after June 15, 2009.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In May 2009, the FASB issued SFAS No. 165, <i>Subsequent Events </i>(“SFAS 165”). SFAS 165
establishes general standards of accounting for and disclosure of events that occur after the
balance sheet date but before financial statements are issued or are available to be issued. SFAS
165 is effective for interim and annual reporting periods ending after June 15, 2009. The adoption
of SFAS 165 did not have a significant impact on the Company’s consolidated results of operations,
financial position and cash flows. The Company evaluated all events and transactions that occurred
after June 30, 2009 up through August 5, 2009, the date the Company issued these financial
statements. During this period, the Company did not have any material recognizable or
non-recognizable subsequent events.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In June 2009, the FASB issued SFAS No. 168, <i>The FASB Accounting Standards
Codification</i><sup style="font-size: 85%; vertical-align: text-top"><i>TM</i></sup><i> and the
Hierarchy of Generally Accepted Accounting Principles a replacement of FASB Statement No. 162</i>
(“SFAS 168”). SFAS 168 identifies the sources of accounting principles and the framework for
selecting the principles used in the preparation of financial statements of nongovernmental
entities that are presented in conformity with generally accepted accounting principles (“GAAP”) in
the United States (the “GAAP hierarchy”). SFAS 168 replaces SFAS 162 and establishes the FASB
Accounting Standards Codification<sup style="font-size: 85%; vertical-align: text-top">TM</sup> as the source of authoritative accounting principles
recognized by the FASB to be applied by nongovernmental entities in the preparation of financial
statements in conformity with GAAP. Rules and interpretive releases of the Securities and Exchange
Commission (“SEC”) under authority of federal securities laws are also sources of authoritative
GAAP for SEC registrants. SFAS 168 is effective for financial statements issued after September 15,
2009.
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<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>3. Fair Value Measurement</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     SFAS 157 defines fair value, establishes a framework for measuring fair value under GAAP and
enhances disclosures about fair value measurements. Fair value is defined under SFAS 157 as the
exchange price that would be received for an asset or paid to transfer a liability (an exit price)
in the principal or most advantageous market for the asset or liability in an orderly transaction
between market participants on the measurement date.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company adopted SFAS 157 as of January 1, 2008, with the exception of the application of
the statement to nonfinancial assets and nonfinancial liabilities, which was delayed by the
Financial Accounting Standards Board (“FASB”) FASB Staff Position No. 157-2, <i>Effective Date of FASB
Statement No. 157 </i>to fiscal years beginning after November 15, 2008, which the Company adopted
January 1, 2009.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     SFAS 157 establishes a valuation hierarchy for disclosure of the inputs to the valuation used
to measure fair value. This hierarchy prioritizes the inputs into three broad levels as follows.
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or
liabilities. Level 2 inputs are quoted prices for similar assets and liabilities in active markets
or inputs that are observable for the asset or liability, either directly or indirectly through
market corroboration, for substantially the full term of the financial instrument. Level 3 inputs
are unobservable inputs based on the Company’s own assumptions used to measure assets and
liabilities at fair value. A
financial asset or liability’s classification within the hierarchy is
determined based on the lowest level input that is significant to the fair value measurement.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     At June 30, 2009, $15.3 million of the Company’s cash and cash equivalents as well as $5.5
million of marketable securities are valued as level 1 investments. In addition, the Company held
$8.9 million valued as level 2 investments in the investments and other assets line of the
consolidated balance sheet. For the six months ended June 30, 2009, gains and losses on the
investments noted above were not material.
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<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>4. Hedging Activities</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In March 2008, the FASB issued SFAS No. 161, <i>Disclosures about Derivative Instruments and
Hedging Activities, an amendment of FASB Statement No. 133 </i>(“SFAS 161”). SFAS 161 requires entities
to provide enhanced disclosure about how and why the entity uses derivative instruments, how the
instruments and related hedged items are accounted for under SFAS No. 133, <i>Accounting for
Derivative Instruments and Hedging Activities </i>(“SFAS 133”), and how the instruments and related
hedged items affect the financial position, results of operations and cash flows of the entity.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company has designated certain foreign-currency-denominated long-term debt as hedges of
the net investment in certain foreign operations. These net investment hedges are the Company’s
British-pound-denominated long-term debt and Euro-denominated long-term debt, pertaining to certain
European acquisitions whose functional currencies are either the British pound or the Euro. These
acquisitions were financed by foreign-currency-denominated borrowings under the Company’s revolving
credit facility and subsequently refinanced with long-term private placement debt. These
borrowings were designed to create net investment hedges in each of the foreign subsidiaries on
their respective dates of acquisition. SFAS 133 permits hedging the foreign currency exposure of a
net investment in a foreign operation. In accordance with SFAS 133, on the respective dates of
acquisition, the Company designated the British pound- and Euro-denominated loans referred to above
as hedging instruments to offset foreign exchange gains or losses on the net investment in the
acquired business due to changes in the British pound and Euro exchange rates. These net
investment hedges were evidenced by management’s documentation supporting the contemporaneous hedge
designation on the acquisition dates. As required by SFAS 133, any gain or loss on the hedging
instrument following hedge designation (the debt), is reported in accumulated other comprehensive
income in the same manner as the translation adjustment on the investment based on changes in the
spot rate, which is used to measure hedge effectiveness.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     At June 30, 2009, the Company had $148.1 million of British pound-denominated loans, which are
designated as a hedge against the net investment in foreign subsidiaries acquired in 2004 and 2003.
At June 30, 2009, the Company had $70.1 million of Euro-denominated loans, which were designated as
a hedge against the net investment in a foreign subsidiary acquired in 2005. As a result of these
British pound- and Euro-denominated loans being designated and effective as net investment hedges,
$17.0 million of currency losses have been included in the foreign currency translation component
of other comprehensive income at June 30, 2009.
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<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>5. Earnings Per Share</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The calculation of basic earnings per share is based on the weighted average number of common
shares considered outstanding during the periods. The calculation of diluted earnings per share
reflects the effect of all potentially dilutive securities (principally outstanding common stock
options and restricted stock grants). The number of weighted average shares used in the calculation
of basic earnings per share and diluted earnings per share were as follows:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Three Months Ended</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Six Months Ended</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>June 30,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>June 30,</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="14"><b>(In thousands)</b></td>
<td> </td>
</tr>
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<td>
<div style="margin-left:15px; text-indent:-15px"><b>Weighted average shares:</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Basic shares
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>106,708</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">105,950</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>106,564</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">105,946</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Stock option and awards plans
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>1,247</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,526</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>1,074</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,667</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Diluted shares
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>107,955</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">107,476</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>107,638</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">107,613</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
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<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>6. Fourth Quarter of 2008 Restructuring Charges and Asset Write-Downs</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     During the fourth quarter of 2008, the Company recorded pre-tax charges totaling $40.0
million, which had the effect of reducing net income by $27.3 million ($0.25 per diluted share).
These charges included restructuring costs for employee reductions and facility closures ($32.6
million), as well as asset write-downs ($7.4 million). The charges included $30.1 million for
severance costs for slightly more than 10% of the Company’s workforce and $1.5 million for lease
termination costs associated with the closure of certain facilities in 2009. Of the $40.0 million
in charges, $32.9 million of the restructuring charges and asset write-downs were recorded in cost
of sales and $7.1 million of the restructuring charges and asset write-downs were recorded in
Selling, general and administrative expenses. The restructuring charges and asset write-downs were
reported in segment operating income as follows: $20.4 million in Electronic Instruments (“EIG”),
$19.4 million in Electromechanical (“EMG”) and $0.2 million in Corporate administrative and other
expenses. The restructuring costs for employee reductions and facility closures relate to plans
established by the Company in 2008 as part of cost reduction initiatives being broadly implemented
across the Company’s various businesses during fiscal 2009. The restructuring costs resulted from
the consolidation of manufacturing facilities, the migration of production to low cost locales and
a general reduction in workforce in response to lower levels of expected sales volumes in certain
of the Company’s businesses. Substantially all of the payments for employee severance and lease
termination costs are expected to be made in 2009.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The following table provides a rollforward of the accruals established in the fourth quarter
of 2008 for restructuring charges (in millions):
</div>
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<td width="88%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
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<td>
<div style="margin-left:15px; text-indent:-15px">Restructuring accruals at December 31, 2008
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">31.6</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Utilization
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(10.3 </td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Foreign currency translation and other
</div></td>
<td> </td>
<td> </td>
<td align="right">0.1</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Restructuring accruals at June 30, 2009
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">21.4</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The fourth quarter of 2008 severance charge was recorded in accordance with SFAS No. 112,
<i>Employers’ Accounting for Postemployment Benefits </i>(“SFAS 112”). SFAS 112 is applicable to all
types of postemployment benefits, which constitute an ongoing benefit arrangement, including, but
not limited to, salary continuation, supplemental unemployment benefits, severance benefits, job
training, counseling and continuation of benefits such as health care benefits and life insurance
coverage. Under SFAS 112, costs associated with such ongoing benefit arrangements are recorded no
later than the period when it becomes probable that the costs will be incurred and the costs are
reasonably estimable.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
</div>
</body>
</html>
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<html>
<head></head>
<body>
<!-- Begin Block Tagged Note 7 - us-gaap:BusinessCombinationDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>7. Acquisitions</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company spent approximately $40.2 million in cash, net of cash acquired, to acquire High
Standard Aviation in January 2009. High Standard Aviation is a provider of electrical and
electromechanical, hydraulic and pneumatic repair services to the aerospace industry. High
Standard Aviation is part of AMETEK’s Electromechanical Group.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The acquisition has been accounted for in accordance with SFAS 141R. Accordingly, the
operating results of the above acquisition has been included in the Company’s consolidated results
from the date of acquisition.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The purchase price and initial recording of the transaction was based on preliminary valuation
assessments and is subject to change. The following table represents the provisional allocation of
the aggregate purchase price for the net assets of the above acquisition based on its estimated
fair value (in millions):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="88%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Property, plant and equipment
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1.6</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Goodwill
</div></td>
<td> </td>
<td> </td>
<td align="right">10.3</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Other intangible assets
</div></td>
<td> </td>
<td> </td>
<td align="right">22.1</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Net working capital and other
</div></td>
<td> </td>
<td> </td>
<td align="right">6.2</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Total purchase price
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">40.2</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The amount allocated to goodwill is reflective of the benefits the Company expects to realize
from the acquisition, as High Standard Aviation broadens the global footprint of AMETEK’s aerospace
maintenance, repair and overhaul business.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company is in the process of conducting third-party valuations of certain tangible and
intangible assets acquired. Adjustments to the allocation of purchase price will be recorded when
this information is finalized. Therefore, the allocation of the purchase price is subject to
revision.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Had the above acquisition been made at the beginning of 2009, pro forma net sales, net income
and diluted earnings per share for the three and six months ended June 30, 2009 would not have been
materially different than the amounts reported.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Had the above acquisition and the 2008 acquisitions of Drake Air and Motion Control Group in
February 2008, Reading Alloys in April 2008, Vision Research, Inc. in June 2008, the programmable
power business of Xantrex Technology, Inc. in August 2008 and Muirhead Aerospace Limited in
November 2008 been made at the beginning of 2008, unaudited pro forma net sales, net income and
diluted earnings per share would have been as follows:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Three Months Ended</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Six Months Ended</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>June 30, 2008</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>June 30, 2008</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>(In millions, except per share amounts)</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Net sales
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">703.1</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">1,393.6</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Net income
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">68.2</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">137.2</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Diluted earnings per share
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">0.63</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">1.28</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Pro forma results are not necessarily indicative of the results that would have occurred if
the acquisitions had been completed at the beginning of 2008.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
</div>
</body>
</html>
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<html>
<head></head>
<body>
<!-- Begin Block Tagged Note 8 - us-gaap:ScheduleOfGoodwillTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>8. Goodwill</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The changes in the carrying amounts of goodwill by segment were as follows:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="64%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>EIG</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>EMG</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Total</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="10"><b>(In millions)</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Balance at December 31, 2008</b>
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>737.2</b></td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>502.9</b></td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>1,240.1</b></td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Goodwill acquired
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">10.3</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">10.3</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Purchase price allocation adjustments and other*
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2.1</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">5.9</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3.8</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Foreign currency translation adjustments
</div></td>
<td> </td>
<td> </td>
<td align="right">14.6</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">12.8</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">27.4</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Balance at June 30, 2009</b>
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right">    <b>749.7</b></td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td nowrap="nowrap" align="right">    <b>531.9</b></td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>1,281.6</b></td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left">
<div style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000"> 
</div>
</div>
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr>
<td width="3%"></td>
<td width="1%"></td>
<td width="96"></td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">*</td>
<td> </td>
<td>Purchase price allocation adjustments reflect final purchase price allocations and
revisions to certain provisional allocations for recent acquisitions, which include
reclassifications between goodwill and other intangible assets.</td>
</tr>
</table>
</div>
</body>
</html>
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<html>
<head></head>
<body>
<!-- Begin Block Tagged Note 9 - us-gaap:InventoryDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>9. Inventories</b>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>June 30,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>December 31,</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>(In thousands)</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Finished goods and parts
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>49,381</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">66,416</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Work in process
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>68,365</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">81,282</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Raw materials and purchased parts
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>207,726</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">201,811</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Total inventories
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>325,472</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">349,509</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
</body>
</html>
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<html>
<head></head>
<body>
<!-- Begin Block Tagged Note 10 - us-gaap:DebtDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>10. Debt</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     During the second quarter of 2009, the Company repaid $62.0 million related to a 40 million
British pound borrowing under the revolving credit facility. At June 30, 2009, the Company had no
borrowings outstanding under the revolving credit facility.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The $100 million accounts receivable securitization facility was not renewed by the Company in
May 2009.
</div>
</div>
</body>
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<body>
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>11. Comprehensive Income</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Comprehensive income includes all changes in stockholders’ equity during a period except those
resulting from investments by and distributions to stockholders. The components of comprehensive
income were as follows:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Three Months Ended</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Six Months Ended</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>June 30,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>June 30,</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="14"><b>(In thousands)</b>    </td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Net income
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>51,813</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">65,842</td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>110,868</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">132,199</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Foreign currency translation adjustment
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>37,151</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">471</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>20,056</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">15,659</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Foreign currency net investment hedge*
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>5,864</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">17</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>4,150</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,209</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Other
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>326</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">135</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>236</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(419</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Total comprehensive income
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>95,154</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">66,465</td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>135,310</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">149,648</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left">
<div style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000"> 
</div>
</div>
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr>
<td width="3%"></td>
<td width="1%"></td>
<td width="96"></td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">*</td>
<td> </td>
<td>Represents the net gains and losses on the Company’s investment in certain foreign
operations in excess of the net gains and losses from the non-derivative
foreign-currency-denominated long-term debt. These debt instruments were designated as
hedging instruments to offset foreign exchange gains or losses on the net investment in
certain foreign operations.</td>
</tr>
</table>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
</div>
</body>
</html>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<html>
<head></head>
<body>
<!-- Begin Block Tagged Note 12 - us-gaap:DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>12. Share-Based Compensation</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The fair value of each option grant is estimated on the date of grant using a
Black-Scholes-Merton option pricing model. The following weighted average assumptions were used in
the Black-Scholes-Merton model to estimate the fair values of options granted during the period
indicated:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Six Months Ended</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Year Ended</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>June 30, 2009</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>December 31, 2008</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Expected stock volatility
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">25.8</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">18.4</td>
<td nowrap="nowrap">%</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Expected life of the options (years)
</div></td>
<td> </td>
<td> </td>
<td align="right">4.9</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4.7</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Risk-free interest rate
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">1.89</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">2.60</td>
<td nowrap="nowrap">%</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Expected dividend yield
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">0.73</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">0.49</td>
<td nowrap="nowrap">%</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Black-Scholes-Merton fair value per option granted
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">7.80</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">9.58</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Expected stock volatility is based on the historical volatility of the Company’s stock. The
Company used historical exercise data to estimate the options’ expected life, which represents the
period of time that the options granted are expected to be outstanding. Management anticipates that
the future option holding periods will be similar to the historical option holding periods. The
risk-free interest rate for periods within the contractual life of the option is based on the U.S.
Treasury yield curve at the time of grant. Compensation expense recognized for all share-based
awards is net of estimated forfeitures. The Company’s estimated forfeiture rates are based on its
historical experience.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Total share-based compensation expense recognized under SFAS No. 123(R), <i>Share-Based Payment</i>,
was as follows:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Three Months Ended</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Six Months Ended</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>June 30,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>June 30,</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="14"><b>(In thousands)</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Stock option expense
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>1,847</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,811</td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>3,133</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">3,238</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Restricted stock expense*
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>1,711</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">9,319</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>3,140</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">11,055</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Total pre-tax expense
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>3,558</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">11,130</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>6,273</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">14,293</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Related tax benefit
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(1,088</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,393</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(1,928</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2,209</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Reduction of net income
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>2,470</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">9,737</td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>4,345</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">12,084</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left">
<div style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000"> 
</div>
</div>
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr>
<td width="3%"></td>
<td width="1%"></td>
<td width="96"></td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">*</td>
<td> </td>
<td>The three and six months ended June 30, 2008 reflect the accelerated vesting of a
restricted stock grant in the second quarter of 2008 as described below.</td>
</tr>
</table>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Pre-tax share-based compensation expense is included in either cost of sales, or selling,
general and administrative expenses, depending on where the recipient’s cash compensation is
reported.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     A summary of the Company’s stock option activity and related information for the six months
ended June 30, 2009 were as follows:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Weighted</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Weighted</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Average</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Aggregate</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Average</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Remaining</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Intrinsic</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Shares</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Exercise Price</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Contractual Life</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Value</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>(In thousands)</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>(Years)</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>(In millions)</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Outstanding at the beginning of the year
</div></td>
<td> </td>
<td> </td>
<td align="right">4,035</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">28.01</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Granted
</div></td>
<td> </td>
<td> </td>
<td align="right">1,318</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">32.71</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Exercised
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(403</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">14.57</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Forfeited
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(96</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">40.01</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Outstanding at the end of the period
</div></td>
<td> </td>
<td> </td>
<td align="right">4,854</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">30.17</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4.3</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">32.0</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Exercisable at the end of the period
</div></td>
<td> </td>
<td> </td>
<td align="right">2,589</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">24.37</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2.7</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">29.4</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The aggregate intrinsic value of options exercised during the six months ended June 30, 2009
was $7.0 million. The total fair value of the stock options vested during the six months ended
June 30, 2009 was $5.3 million.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     As of June 30, 2009, there was approximately $16.5 million of expected future pre-tax
compensation expense related to the 2.3 million nonvested options outstanding, which is expected to
be recognized over a weighted average period of approximately two years.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     During the second quarter of 2009, the Company granted 0.4 million shares of restricted stock
with a fair value of $32.71 per share. At June 30, 2009, 0.9 million nonvested restricted shares
were outstanding. As of June 30, 2009, there was approximately $22.1 million of expected future
pre-tax compensation expense related to nonvested restricted shares, which is expected to be
recognized over a weighted average period of approximately three years.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Restricted stock awards are subject to accelerated vesting due to certain events, including
doubling of the grant price of the Company’s common stock as of the close of business during any
five consecutive trading days. On May 19, 2008, the April 27, 2005 grant of 706,605 shares of
restricted stock vested under an accelerated vesting provision. The pre-tax charge to income due
to the accelerated vesting of these shares was $7.8 million ($7.3 million net after-tax charge) for
the six months ended June 30, 2008.
</div>
</div>
</body>
</html>
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<html>
<head></head>
<body>
<!-- Begin Block Tagged Note 13 - us-gaap:IncomeTaxDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>13. Income Taxes</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     At
June 30, 2009, the Company had gross unrecognized tax benefits
of $22.5 million, of which
$21.6 million, if recognized, would impact the effective tax rate. At December 31, 2008, the
Company had gross unrecognized tax benefits of $18.6 million, all of which would impact the
effective tax rate if recognized.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The following is a reconciliation of the liability for uncertain tax positions (in millions):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="88%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Balance at December 31, 2008</b>
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>18.6</b></td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Additions for tax positions of prior years
</div></td>
<td> </td>
<td> </td>
<td align="right">6.2</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Reductions for tax positions of prior years
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2.3</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Balance at June 30, 2009</b>
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>22.5</b></td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company recognizes interest and penalties accrued related to uncertain tax positions in
income tax expense. The amounts recognized in income tax expense for interest and penalties during
the three and six months ended June 30, 2009 and 2008 were not significant.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
</div>
</body>
</html>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<html>
<head></head>
<body>
<!-- Begin Block Tagged Note 14 - us-gaap:PensionAndOtherPostretirementBenefitsDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>14. Retirement and Pension Plans</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The components of net periodic pension benefit expense were as follows:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Three Months Ended</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Six Months Ended</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>June 30,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>June 30,</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="14"><b>(In thousands)</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Defined benefit plans:</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Service cost
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>1,122</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,424</td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>2,266</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2,980</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest cost
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>7,093</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">7,231</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>13,954</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">14,497</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Expected return on plan assets
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(9,029</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(10,525</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(17,702</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(21,051</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Amortization of net actuarial loss and prior
service costs
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>3,336</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">122</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>6,644</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">52</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">SFAS 87 expense (income)
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>2,522</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,748</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right"><b>5,162</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(3,522</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Other plans:</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Defined contribution plans
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>3,245</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,158</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>6,774</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">6,574</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Foreign plans and other
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>1,020</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,186</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>2,025</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,458</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Total other plans
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>4,265</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4,344</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>8,799</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">9,032</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Total net pension expense
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>6,787</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2,596</td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>13,961</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">5,510</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     For the six months ended June 30, 2009 and 2008, contributions to our defined benefit pension
plans were $19.0 million and $1.8 million, respectively. The current estimate of 2009 pension
contributions is in line with the range disclosed in our 2008 Form 10-K.
</div>
</div>
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>15. Financial Instruments</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The estimated fair values of the Company’s financial instruments are compared below to the
recorded amounts at June 30, 2009 and December 31, 2008. Cash, cash equivalents and marketable
securities are recorded at fair value at June 30, 2009 and December 31, 2008 in the accompanying
consolidated balance sheet.
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="15" style="border-bottom: 1px solid #000000"><b>Asset (Liability)</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>June 30,</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>December 31,</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>2008</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Recorded Amount</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Fair Value</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Recorded Amount</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Fair Value</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="15"><b>(In thousands)</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Fixed-income investments
</div></td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>8,578</b></td>
<td> </td>
<td> </td>
<td align="right"><b>$</b></td>
<td align="right"><b>8,578</b></td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">8,248</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">8,248</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Short-term borrowings
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right"><b>(4,218</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right"><b>(4,218</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(16,028</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(16,028</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Long-term debt (including current portion)
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right"><b>(1,054,778</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right"><b>(1,054,778</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(1,095,653</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(1,095,653</td>
<td nowrap="nowrap">)</td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The fair value of fixed-income investments is based on quoted market prices. The fair value of
short-term borrowings approximates the carrying value. The Company’s long-term debt is all
privately-held with no public market for this debt. It is not practicable to estimate the fair
value of this privately-held debt as pricing estimates are contingent upon many financial market,
as well as Company specific factors. In conjunction, these factors can produce a wide variance of
indicative pricing.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
</div>
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>16. Product Warranties</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company provides limited warranties in connection with the sale of its products. The
warranty periods for products sold vary widely among the Company’s operations, but for the most
part do not exceed one year. The Company calculates its warranty expense provision based on past
warranty experience and adjustments are made periodically to reflect actual warranty expenses.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Changes in accrued product warranty obligation were as follows:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Six Months Ended</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>June 30,</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>(In thousands)</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Balance at the beginning of the period
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>16,068</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">14,433</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Accruals for warranties issued during the period
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>3,927</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4,678</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Settlements made during the period
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(5,403</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(5,106</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Warranty accruals related to new businesses and other
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>991</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">952</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Balance at the end of the period
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>15,583</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">14,957</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Certain settlements of warranties made during the period were for specific nonrecurring
warranty obligations. Product warranty obligations are reported as current liabilities in the
consolidated balance sheet.
</div>
</div>
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>17. Reportable Segments</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company has two reportable segments, the EIG and the EMG. The Company manages, evaluates
and aggregates its operating segments for segment reporting purposes primarily on the basis of
product type, production processes, distribution methods and management organizations.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     At June 30, 2009, there were no significant changes in identifiable assets of reportable
segments from the amounts disclosed at December 31, 2008, nor were there any changes in the basis
of segmentation or in the measurement of segment operating results. Operating information relating
to the Company’s reportable segments for the three and six months ended June 30, 2009 and 2008 can
be found in the table within Part I, Item 2 “Management’s Discussion and Analysis of Financial
Condition and Results of Operations” of this Report.
</div>
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false
--12-31
2009-06-30
10-Q
0001037868
107518291
Yes
Large Accelerated Filer
5037380113
AMETEK, Inc.
No
Yes
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