-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, TEULFv0FA3Wo4Mw7WAeyMoKoXMDemUvetQ6XK476kfIa0TC5tzEiok1cScf1FL5H 7ZVQE5tc1oR4CFWbMoawfA== 0000930413-09-003987.txt : 20090803 0000930413-09-003987.hdr.sgml : 20090801 20090803152348 ACCESSION NUMBER: 0000930413-09-003987 CONFORMED SUBMISSION TYPE: 10-Q/A PUBLIC DOCUMENT COUNT: 29 CONFORMED PERIOD OF REPORT: 20090630 FILED AS OF DATE: 20090803 DATE AS OF CHANGE: 20090803 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HONEYWELL INTERNATIONAL INC CENTRAL INDEX KEY: 0000773840 STANDARD INDUSTRIAL CLASSIFICATION: MOTOR VEHICLE PARTS & ACCESSORIES [3714] IRS NUMBER: 222640650 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q/A SEC ACT: 1934 Act SEC FILE NUMBER: 001-08974 FILM NUMBER: 09980096 BUSINESS ADDRESS: STREET 1: 101 COLUMBIA RD STREET 2: PO BOX 4000 CITY: MORRISTOWN STATE: NJ ZIP: 07962 BUSINESS PHONE: 9734552000 MAIL ADDRESS: STREET 1: 101 COLUMBIA RD P O BOX 4000 STREET 2: 101 COLUMBIA RD P O BOX 4000 CITY: MORRISTOWN STATE: NJ ZIP: 07962 FORMER COMPANY: FORMER CONFORMED NAME: ALLIEDSIGNAL INC DATE OF NAME CHANGE: 19940929 10-Q/A 1 c58317_10qa.htm c58317_10qa.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing

United States
Securities and Exchange Commission
Washington, D.C. 20549

Form 10-Q/A


[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2009

OR

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______ to _____

Commission file number 1-8974

Honeywell International Inc.
(Exact name of registrant as specified in its charter)
Delaware   22-2640650

(State or other jurisdiction of
incorporation or organization)

 

(I.R.S. Employer
Identification No.)

     

101 Columbia Road
Morris Township, New Jersey

 

07962

(Address of principal executive offices)

 

(Zip Code)

     
(973)455-2000
(Registrant’s telephone number, including area code)
     
Not Applicable
(Former name, former address and former fiscal year,
if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes   X   No      

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes   X   No      

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a small reporting company. See definitions of “accelerated filer,” “large accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer   X     Accelerated filer         Non-Accelerated filer      
Smaller reporting company              

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes       No   X  

There were 752,054,121 shares of Common Stock outstanding at June 30, 2009.


EXPLANATORY NOTE

The sole purpose of this Form 10-Q/A is to furnish the interactive data files as exhibit 101. Exhibit 101 to this report provides the following items from our Form 10-Q formatted in Extensible Business Reporting Language (XBRL): (i) the unaudited Consolidated Statement of Operations, (ii) the unaudited Consolidated Balance Sheet, (iii) the unaudited Consolidated Statement of Cash Flows, and (iv) the unaudited Notes to Financial Statements, tagged as blocks of text.

Users of this data are advised that pursuant to Rule 406T of Regulation S-T these interactive data files are deemed not filed or part of a registration statement or prospectus for purposes of sections 11 or 12 of the Securities Act of 1933, are deemed not filed for purposes of section 18 of the Securities and Exchange Act of 1934, and otherwise are not subject to liability under those sections. No other changes have been made to the Form 10-Q other than those described above. This Amendment No. 1 does not reflect subsequent events occurring after the original filing date of the Form 10-Q or modify or update in any way disclosures made in the Form 10-Q.

2


EXHIBIT INDEX
 
Exhibit Number   Description
11 *   Computation of Per Share Earnings
     
12 *   Computation of Ratio of Earnings to Fixed Charges
     
15 *   Independent Accountants’ Acknowledgment Letter as to the incorporation of their report relating to unaudited interim financial statements
     
31 .1*   Certification of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
     
31 .2*   Certification of Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
     
32 .1*   Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
     
32 .2*   Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
     
101 .INS**   XBRL Instance Document
     
101 .SCH**   XBRL Taxonomy Extension Schema
     
101 .CAL**   XBRL Taxonomy Extension Calculation Linkbase
     
101 .DEF**   XBRL Taxonomy Extension Definition Linkbase
     
101 .LAB**   XBRL Taxonomy Extension Label Linkbase
     
101 .PRE**   XBRL Taxonomy Extension Presentation Linkbase


*

Previously filed

**

Furnished herewith

3


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

  Honeywell International Inc.
 
Date: August 3, 2009 By: /s/ Kathleen A. Winters
    Kathleen A. Winters
    Vice President and Controller
    (on behalf of the Registrant
    and as the Registrant’s
    Principal Accounting Officer)

4


EX-101.INS 2 hon-20090630.xml 0000773840 2007-12-31 0000773840 2009-01-01 2009-06-30 0000773840 2008-04-01 2008-06-30 0000773840 2008-01-01 2008-06-30 0000773840 2008-12-31 0000773840 2008-06-30 0000773840 2009-06-30 0000773840 2009-04-01 2009-06-30 iso4217:USD xbrli:shares iso4217:USD xbrli:shares false --12-31 2009-06-30 10-Q 0000773840 752054121 Yes Large Accelerated Filer 37.5 HONEYWELL INTERNATIONAL INC. 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The recorded liabilities are adjusted periodically as remediation efforts progress or as additional technical, regulatory or legal information becomes available. Given the uncertainties regarding the status of laws, regulations, enforcement policies, the impact of other potentially responsible parties, technology and information related to individual sites, we do not believe it is possible to develop an estimate of the range of reasonably possible environmental loss in excess of our recorded liabilities. We expect to fund expenditures for these matters from operating cash flow. The timing of cash expenditures depends on a number of factors, including the timing of remedial investigations and feasibility studies, the timing of litigation and settlements of remediation liability, personal injury and property damage claims, regulatory approval of cleanup projects, remedial techniques to be utilized and agreements with other parties. 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"mso-spacerun:yes">&#160;</span>603</u></span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:3;mso-yfti-lastrow:yes"> <td width="271" valign="top" style= "width:203.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="140" valign="top" style= "width:105.2pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;&#160;&#160;&#160;</span> <u style= "text-underline:double">$884</u></span></b></span> </p> </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="180" valign="top" style= "width:135.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</span> <u style= "text-underline:double">$946</u></span></b></span> </p> </td> </tr> </table> <p class="MsoNormal"> <span><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> <p class="MsoNormal" style= "margin-top:8.0pt;text-align:justify;text-indent:.5in"> <span><b style="mso-bidi-font-weight: normal"><span style= "font-size:10.0pt;font-family:Courier New">Although we do not currently possess sufficient information to reasonably estimate the amounts of liabilities to be recorded upon future completion of studies, litigation or settlements, and neither the timing nor the amount of the ultimate costs associated with environmental matters can be determined, they could be material to our consolidated results of operations or operating cash flows in the periods recognized or paid. However, considering our past experience and existing reserves, we do not expect that these environmental matters will have a material adverse effect on our consolidated financial position.</span></b></span> </p> <p class="MsoNormal" style= "margin-top:8.0pt;text-align:justify;text-indent:.5in"> <span><b><i><span style= "font-size:10.0pt;font-family:Courier New">New Jersey Chrome Sites</span></i></b></span> <span><b style= "mso-bidi-font-weight: normal"><span style= "font-size:10.0pt;font-family:Courier New">&#8212; Provisions have been made in our financial statements for the estimated costs of the court-ordered excavation and transport for offsite disposal of approximately one million tons of chromium residue present at a predecessor Honeywell site located in Jersey City, New Jersey, known as Study Area 7. These expenditures have been and are expected to continue to be incurred evenly through the remedy&#8217;s expected completion date in 2010. We do not expect implementation of this remedy to have a material adverse effect on our future consolidated results of operations, operating cash flows or financial position. Provision also has been made in our financial statements for the estimated costs of implementing related groundwater remedial plans approved by the Court, as well as sediment remedial plans, which also have been approved by the Court and are presently under review by the U.S. Environmental Protection Agency.</span></b></span> </p> <p class="MsoNormal" style= "margin-top:8.0pt;text-align:justify;text-indent:.5in"> <span><b style="mso-bidi-font-weight: normal"><span style= "font-size:10.0pt;font-family:Courier New">The above-referenced site is the most significant of the twenty-one sites located in Hudson County, New Jersey that are the subject of an Administrative Consent Order (ACO) entered into with the New Jersey Department of Environmental Protection (NJDEP) in 1993 (the &#8220;Honeywell ACO Sites&#8221;). Remedial investigations and activities consistent with the ACO have also been conducted and are underway at the other Honeywell ACO Sites. We have recorded reserves for the Honeywell ACO Sites where appropriate under the accounting policy described above.</span></b></span> </p> <p class="MsoNormal" style= "margin-top:8.0pt;text-align:justify;text-indent:.5in"> <span><b style="mso-bidi-font-weight: normal"><span style= "font-size:10.0pt;font-family:Courier New">On May 3, 2005, NJDEP filed a lawsuit in New Jersey Superior Court against Honeywell and two other companies seeking declaratory and injunctive relief, unspecified damages, and the reimbursement of unspecified total costs relating to sites in New Jersey allegedly contaminated with chrome ore processing residue. The claims against Honeywell relate to the activities of a predecessor company which ceased its New Jersey manufacturing operations in the mid-1950&#8217;s. Honeywell and the two other companies have agreed to settle this litigation with NJDEP, subject to Court approval. Under the settlement, Honeywell would pay $5 million of NJDEP&#8217;s past costs, as well as accept sole responsibility to remediate 24 of the 53 &#8220;Publicly Funded Sites&#8221; (i.e., those sites for which none of the three companies had previously accepted responsibility). Honeywell would also bear 50% of the costs at another 10 Publicly Funded Sites. We have recorded reserves for the Publicly Funded Sites where appropriate under the accounting policy described above.</span></b></span> </p> <p class="MsoNormal" style= "margin-top:8.0pt;text-align:justify;text-indent:.5in"> <span><b style="mso-bidi-font-weight: normal"><span style= "font-size:10.0pt;font-family:Courier New">Lawsuits were previously filed in federal court against Honeywell and other landowners by Jersey City and two of its municipal utility authorities, and separately by a citizens group seeking, the cleanup of chrome residue at several of the Honeywell ACO Sites under the federal Resource Conservation and Recovery Act (RCRA). Honeywell, Jersey City, the municipal utility authorities and the citizens group have agreed to settle claims relating to a group of properties known as Study Area 6 North, which settlement has been approved by the Court. These sites and other related sites have been classified by Jersey City as an area in need of redevelopment and Jersey City has approved a redevelopment plan and agreement regarding these sites. As part of this settlement, Honeywell has also agreed to release claims it may have had against Jersey City and its municipal utility authorities for contamination of river sediments and for the remediation of chrome residue at the Publicly Funded Sites that are sewer lines. Honeywell and the plaintiffs have reached a settlement for one group of properties known as Study Area 6 South, and that settlement has been approved by the Court. The remedial actions regarding the settlements discussed above, which have also been approved by NJDEP, are consistent with our recorded reserves. Settlement negotiations are ongoing for the remaining sites (portions of what is known as Study Area 5) in the litigation.</span></b></span> </p> <p class="MsoNormal" style= "margin-top:8.0pt;text-align:justify;text-indent:.5in"> <span><b><i><span style= "font-size:10.0pt;font-family:Courier New">Dundalk Marine Terminal, Baltimore</span></i></b></span> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#8212; Chrome residue from legacy chrome plant operations in Baltimore was deposited as fill at the Dundalk Marine Terminal (&#8220;DMT&#8221;), which is owned and operated by the Maryland Port Administration (&#8220;MPA&#8221;). Honeywell and the MPA have been sharing costs to investigate and mitigate related environmental issues, and have entered into a cost sharing agreement under which Honeywell will bear 77 percent of the costs of developing and implementing permanent remedies for the DMT facility. The investigative phase is ongoing, after which the appropriate remedies will be identified and chosen. We have negotiated a Consent Decree with the MPA and Maryland Department of the Environment (&#8220;MDE&#8221;) with respect to the investigation and remediation of the DMT facility. The Consent Decree is being challenged in federal court by BUILD, a Baltimore community group, together with a local church and two individuals (collectively &#8220;BUILD&#8221;). In October 2007, the Court dismissed with prejudice BUILD&#8217;s state law claims and dismissed without prejudice BUILD&#8217;s RCRA claims regarding neighborhoods near the DMT facility. In August 2008, the Court held a hearing on the Company&#8217;s motion to dismiss BUILD&#8217;s remaining claims on the grounds that MDE is diligently prosecuting the investigation and remediation of the DMT. We are awaiting the Court&#8217;s decision. We do not believe that this matter will have a material adverse impact on our consolidated financial position or operating cash flows. Given the scope and complexity of this project, it is possible that the cost of remediation, when determinable, could have a material adverse impact on our results of operations in the periods recognized.</span></b></span> </p> <p class="MsoNormal" style= "margin-top:8.0pt;text-align:justify;text-indent:.5in"> <span><b><i><span style= "font-size:10.0pt;font-family:Courier New">Onondaga Lake, Syracuse, NY</span></i></b></span> <span><b style= "mso-bidi-font-weight: normal"><span style= "font-size:10.0pt;font-family:Courier New">&#8212; A predecessor company to Honeywell operated a chemical plant which is alleged to have contributed mercury and other contaminants to the Lake. In July 2005, the New York State Department of Environmental Conservation (the DEC) issued its Record of Decision (ROD) with respect to remediation of industrial contamination in the Lake. In January 2007, a Consent Decree was approved by the United States District Court for the Northern District of New York for the implementation of the combined dredging/capping remedy set forth in the ROD. We have accrued for our estimated cost of implementing the remedy set forth in the ROD based on current available information and analysis performed by our engineering consultants.</span></b></span> </p> <p class="MsoNormal" style= "margin-top:8.0pt;text-align:justify;text-indent:.5in"> <span><b style="mso-bidi-font-weight: normal"><span style= "font-size:10.0pt;font-family:Courier New">In December 2006, the United States Fish and Wildlife Service published notice of its intent to pursue natural resource damages related to the site. It is not possible to predict the outcome or timing of its assessments, which are typically lengthy processes lasting several years, or the amounts of or responsibility for these damages.</span></b></span> </p> <p class="MsoNormal" style= "margin-top:8.0pt;text-align:justify;text-indent:.5in"> <span><b style="mso-bidi-font-weight: normal"><span style= "font-size:10.0pt;font-family:Courier New">Honeywell is also conducting remedial investigations and activities at other sites in Syracuse, New York. We have recorded reserves for these investigations and activities where appropriate under the accounting policy described above.</span></b></span> </p> <p class="MsoNormal" style= "margin-top:8.0pt;text-align:justify"> <span><b><span style= "font-size:10.0pt;font-family:Courier New">Asbestos Matters</span></b></span> </p> <p class="MsoNormal" style= "margin-top:8.0pt;text-align:justify;text-indent:.5in"> <span><b style="mso-bidi-font-weight: normal"><span style= "font-size:10.0pt;font-family:Courier New">Like many other industrial companies, Honeywell is a defendant in personal injury actions related to asbestos. We did not mine or produce asbestos, nor did we make or sell insulation products or other construction materials that have been identified as the primary cause of asbestos related disease in the vast majority of claimants. Products containing asbestos previously manufactured by Honeywell or by previously owned subsidiaries primarily fall into two general categories: refractory products and friction products.</span></b></span> </p> <p class="MsoNormal" style= "margin-top:8.0pt;text-align:justify;text-indent:.5in"> <span><b><i><span style= "font-size:10.0pt;font-family:Courier New">Refractory Products</span></i></b></span> <span><b style= "mso-bidi-font-weight: normal"><span style= "font-size:10.0pt;font-family:Courier New">&#8212; Honeywell owned North American Refractories Company (NARCO) from 1979 to 1986. NARCO produced refractory products (high temperature bricks and cement) that were sold largely to the steel industry in the East and Midwest. Less than 2 percent of NARCO&#8217;s products contained asbestos.</span></b></span> </p> <p class="MsoNormal" style= "margin-top:8.0pt;text-align:justify;text-indent:.5in"> <span><b style="mso-bidi-font-weight: normal"><span style= "font-size:10.0pt;font-family:Courier New">When we sold the NARCO business in 1986, we agreed to indemnify NARCO with respect to personal injury claims for products that had been discontinued prior to the sale (as defined in the sale agreement). NARCO retained all liability for all other claims. On January 4, 2002, NARCO filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code.</span></b></span> </p> <p class="MsoNormal" style= "margin-top:8.0pt;text-align:justify;text-indent:.5in"> <span><b style="mso-bidi-font-weight: normal"><span style= "font-size:10.0pt;font-family:Courier New">As a result of the NARCO bankruptcy filing, all of the claims pending against NARCO are automatically stayed pending the reorganization of NARCO. In addition, the bankruptcy court enjoined both the filing and prosecution of NARCO-related asbestos claims against Honeywell. The stay has remained in effect continuously since January 4, 2002. In connection with NARCO&#8217;s bankruptcy filing, we paid NARCO&#8217;s parent company $40 million and agreed to provide NARCO with up to $20 million in financing. We also agreed to pay $20 million to NARCO&#8217;s parent company upon the filing of a plan of reorganization for NARCO acceptable to Honeywell (which amount was paid in December 2005 following the filing of NARCO&#8217;s Third Amended Plan of Reorganization), and to pay NARCO&#8217;s parent company $40 million, and to forgive any outstanding NARCO indebtedness to Honeywell, upon the effective date of the plan of reorganization.</span></b></span> </p> <p class="MsoNormal" style= "margin-top:8.0pt;text-align:justify;text-indent:.5in"> <span><b style="mso-bidi-font-weight: normal"><span style= "font-size:10.0pt;font-family:Courier New">We believe that, as part of the NARCO plan of reorganization, a trust will be established for the benefit of all asbestos claimants, current and future, pursuant to Trust Distribution Procedures negotiated with the NARCO Asbestos Claimants Committee and the Court-appointed legal representative for future asbestos claimants. If the trust is put in place and approved by the Court as fair and equitable, Honeywell as well as NARCO will be entitled to a permanent channeling injunction barring all present and future individual actions in state or federal courts and requiring all asbestos related claims based on exposure to NARCO products to be made against the federally-supervised trust. Honeywell has reached agreement with the representative for future NARCO claimants and the Asbestos Claimants Committee to cap its annual contributions to the trust with respect to future claims at a level that would not have a material impact on Honeywell&#8217;s operating cash flows.</span></b></span> </p> <p class="MsoNormal" style= "margin-top:8.0pt;text-align:justify;text-indent:.5in"> <span><b style="mso-bidi-font-weight: normal"><span style= "font-size:10.0pt;font-family:Courier New">In November 2007, the Bankruptcy Court entered an amended order confirming the NARCO Plan without modification and approving the 524(g) trust and channeling injunction in favor of NARCO and Honeywell. In December 2007, certain insurers filed an appeal of the Bankruptcy Court Order in the United States District Court for the Western District of Pennsylvania. The District Court affirmed the Bankruptcy Court Order in July 2008. In August 2008, insurers filed a notice of appeal to the Third Circuit Court of Appeals. The appeal is fully briefed, oral argument took place on May 21, 2009, and the matter has been submitted for decision. No assurances can be given as to the time frame or outcome of this appeal. We expect that the stay enjoining litigation against NARCO and Honeywell will remain in effect during the pendency of these proceedings.</span></b></span> </p> <p class="MsoNormal" style= "margin-top:8.0pt;text-align:justify;text-indent:.5in"> <span><b style="mso-bidi-font-weight: normal"><span style= "font-size:10.0pt;font-family:Courier New">Our consolidated financial statements reflect an estimated liability for settlement of pending and future NARCO-related asbestos claims as of June 30, 2009 and December 31, 2008 of $1.1 billion. The estimated liability for pending claims is based on terms and conditions, including evidentiary requirements, in definitive agreements with approximately 260,000 current claimants, and an estimate of the unsettled claims pending as of the time NARCO filed for bankruptcy protection. Substantially all settlement payments with respect to current claims have been made. Approximately $100 million of payments due pursuant to these settlements is due only upon establishment of the NARCO trust.</span></b></span> </p> <p class="MsoNormal" style= "margin-top:8.0pt;text-align:justify;text-indent:.5in"> <span><b style="mso-bidi-font-weight: normal"><span style= "font-size:10.0pt;font-family:Courier New">The estimated liability for future claims represents the estimated value of future asbestos related bodily injury claims expected to be asserted against NARCO through 2018 and the aforementioned obligations to NARCO&#8217;s parent. In light of the uncertainties inherent in making long-term projections we do not believe that we have a reasonable basis for estimating asbestos claims beyond 2018 under SFAS No. 5, &#8220;Accounting for Contingencies&#8221;. The estimate is based upon the disease criteria and payment values contained in the NARCO Trust Distribution Procedures negotiated with the NARCO Asbestos Claimants Committee and the NARCO future claimants&#8217; representative. Honeywell projected the probable number and value, including trust claim handling costs, of asbestos related future liabilities based upon experience of asbestos claims filing rates in the tort system and in certain operating asbestos trusts, and the claims experience in those forums. The valuation methodology also includes an analysis of the population likely to have been exposed to asbestos containing products, epidemiological studies to estimate the number of people likely to develop asbestos related diseases, NARCO claims filing history, the pending inventory of NARCO asbestos related claims and payment rates expected to be established by the NARCO trust. This methodology used to estimate the liability for future claims has been commonly accepted by numerous courts.</span></b></span> </p> <p class="MsoNormal" style= "margin-top:8.0pt;text-align:justify;text-indent:.5in"> <span><b style="mso-bidi-font-weight: normal"><span style= "font-size:10.0pt;font-family:Courier New">As of June 30, 2009 and December 31, 2008, our consolidated financial statements reflect an insurance receivable corresponding to the liability for settlement of pending and future NARCO-related asbestos claims of $873 and $877 million, respectively. This coverage reimburses Honeywell for portions of the costs incurred to settle NARCO related claims and court judgments as well as defense costs and is provided by a large number of insurance policies written by dozens of insurance companies in both the domestic insurance market and the London excess market. At June 30, 2009, a significant portion of this coverage is with insurance companies with whom we have agreements to pay full policy limits based on corresponding Honeywell claims costs. We conduct analyses to determine the amount of insurance that we estimate is probable of recovery in relation to payment of current and estimated future claims. While the substantial majority of our insurance carriers are solvent, some of our individual carriers are insolvent, which has been considered in our analysis of probable recoveries. We made judgments concerning insurance coverage that we believe are reasonable and consistent with our historical dealings with our insurers, our knowledge of any pertinent solvency issues surrounding insurers and various judicial determinations relevant to our insurance programs.</span></b></span> </p> <p class="MsoNormal" style= "margin-top:8.0pt;text-align:justify;text-indent:.5in"> <span><b style="mso-bidi-font-weight: normal"><span style= "font-size:10.0pt;font-family:Courier New">In the second quarter of 2006, Travelers Casualty and Insurance Company (&#8220;Travelers&#8221;) filed a lawsuit against Honeywell and other insurance carriers in the Supreme Court of New York, County of New York, disputing obligations for NARCO-related asbestos claims under high excess insurance coverage issued by Travelers and other insurance carriers. Approximately $340 million of coverage under these policies is included in our NARCO-related insurance receivable at June 30, 2009. Honeywell believes it is entitled to the coverage at issue and expects to prevail in this matter. In the third quarter of 2007, Honeywell prevailed on a critical choice of law issue concerning the appropriate method of allocating NARCO-related asbestos liabilities to triggered policies. The plaintiffs appealed and the trial court&#8217;s ruling was upheld by the appellate court in the second quarter of 2009. A related New Jersey action brought by Honeywell has been dismissed, but all coverage claims against plaintiffs have been preserved in the New York action. <span style= "mso-spacerun:yes">&#160;</span>Based upon (i) our understanding of relevant facts and applicable law, (ii) the terms of the insurance policies at issue, (iii) our experience on matters of this nature, and (iv) the advice of counsel, we believe that the amount due from Travelers and other insurance carriers ($340 million at June 30, 2009) is probable of recovery. While Honeywell expects to prevail in this matter, an adverse outcome could have a material impact on our results of operations in the period recognized but would not be material to our consolidated financial position or operating cash flows.</span></b></span> </p> <p class="MsoNormal" style= "margin-top:8.0pt;text-align:justify;text-indent:.5in"> <span><b style="mso-bidi-font-weight: normal"><span style= "font-size:10.0pt;font-family:Courier New">Projecting future events is subject to many uncertainties that could cause the NARCO related asbestos liabilities or assets to be higher or lower than those projected and recorded. There is no assurance that the plan of reorganization will become final, that insurance recoveries will be timely or whether there will be any NARCO related asbestos claims beyond 2018. Given the inherent uncertainty in predicting future events, we review our estimates periodically, and update them based on our experience and other relevant factors. Similarly we will reevaluate our projections concerning our probable insurance recoveries in light of any changes to the projected liability or other developments that may impact insurance recoveries.</span></b></span> </p> <p class="MsoNormal" style= "margin-top:8.0pt;text-align:justify;text-indent:.5in"> <span><b><i><span style= "font-size:10.0pt;font-family:Courier New">Friction Products</span></i></b></span> <span><b style= "mso-bidi-font-weight: normal"><span style= "font-size:10.0pt;font-family:Courier New">&#8212; Honeywell&#8217;s Bendix friction materials (Bendix) business manufactured automotive brake parts that contained chrysotile asbestos in an encapsulated form. Existing and potential claimants consist largely of individuals who allege exposure to asbestos from brakes from either performing or being in the vicinity of individuals who performed brake replacements.</span></b></span> </p> <p class="MsoNormal" style= "margin-top:8.0pt;text-align:justify;text-indent:.5in"> <span><b style="mso-bidi-font-weight: normal"><span style= "font-size:10.0pt;font-family:Courier New">From 1981 through June 30, 2009, we have resolved approximately 119,000 Bendix related asbestos claims. We had 129 trials resulting in favorable verdicts and 15 trials resulting in adverse verdicts. Two of these adverse verdicts were reversed on appeal, three verdicts were vacated on post-trial motions, three claims were settled and the remaining have been or will be appealed. The following tables present information regarding Bendix related asbestos claims activity:</span></b></span> </p> <p class="MsoNormal" style= "margin-top:8.0pt;text-align:justify;text-indent:.5in"> <span><b style="mso-bidi-font-weight: normal"><span style= "font-size:10.0pt;font-family:Courier New">&#160;</span></b></span> </p> <p class="MsoNormal" style= "margin-top:8.0pt;text-align:justify;text-indent:.5in"> <span><b style="mso-bidi-font-weight: normal"><span style= "font-size:10.0pt;font-family:Courier New">&#160;</span></b></span> </p> <p class="MsoNormal" style= "margin-top:8.0pt;text-align:justify;text-indent:.5in"> <span><b style="mso-bidi-font-weight: normal"><span style= "font-size:10.0pt;font-family:Courier New">&#160;</span></b></span> </p> <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" width="655" style= "border-collapse:collapse;mso-table-layout-alt:fixed;mso-yfti-tbllook: 480;mso-padding-alt:0in 5.4pt 0in 5.4pt"> <tr style= "mso-yfti-irow:0;mso-yfti-firstrow:yes;height:24.0pt"> <td width="295" valign="top" style= "width:221.4pt;padding:0in 5.4pt 0in 5.4pt; height:24.0pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="145" valign="top" style= "width:108.65pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:24.0pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">Six Months Ended</span></b></span> </p> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">June 30, 2009</span></b></span> </p> </td> <td width="23" valign="top" style= "width:17.35pt;padding:0in 5.4pt 0in 5.4pt; height:24.0pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="192" colspan="2" valign="top" style= "width:2.0in;border:none;border-bottom: solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:24.0pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">Year Ended</span></b></span> </p> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">December 31,</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:1"> <td width="295" valign="top" style= "width:221.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:9.0pt; font-family:Courier New"><span style= "text-decoration:none">&#160;</span></span></u></b></span> </p> </td> <td width="145" valign="top" style= "width:108.65pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="23" valign="top" style= "width:17.35pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:9.0pt; font-family:Courier New"><span style= "text-decoration:none">&#160;</span></span></u></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;</span> <u>2008</u>&#160;</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;border:none;border-top:solid windowtext 1.0pt; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;</span> <u>2007</u></span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:2"> <td width="295" valign="top" style= "width:221.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:9.0pt; font-family:Courier New">Claims Activity</span></u></b></span> </p> </td> <td width="145" valign="top" style= "width:108.65pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="23" valign="top" style= "width:17.35pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:3"> <td width="295" valign="top" style= "width:221.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">Claims Unresolved at the beginning</span></b></span> </p> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;</span> of period</span></b></span> </p> </td> <td width="145" valign="top" style= "width:108.65pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">&#160;</span></b></span> </p> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;&#160;&#160;&#160;</span> 51,951</span></b></span> </p> </td> <td width="23" valign="top" style= "width:17.35pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">&#160;</span></b></span> </p> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;&#160;</span> 51,658</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">&#160;</span></b></span> </p> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;&#160;</span> 57,108</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:4"> <td width="295" valign="top" style= "width:221.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">Claims Filed during the period</span></b></span> </p> </td> <td width="145" valign="top" style= "width:108.65pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;&#160;&#160;&#160;&#160;</span> 1,353</span></b></span> </p> </td> <td width="23" valign="top" style= "width:17.35pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;&#160;&#160;</span> 4,003</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;&#160;&#160;</span> 2,771</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:5"> <td width="295" valign="top" style= "width:221.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">Claims Resolved during the period</span></b></span> </p> </td> <td width="145" valign="top" style= "width:108.65pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;&#160;&#160;&#160;</span> <u>(2,194</u>)</span></b></span> </p> </td> <td width="23" valign="top" style= "width:17.35pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;&#160;</span> <u>(3,710</u>)</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;&#160;</span> <u>(8,221</u>)</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:6"> <td width="295" valign="top" style= "width:221.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">Claims Unresolved at the end of period</span></b></span> </p> </td> <td width="145" valign="top" style= "width:108.65pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;&#160;&#160;&#160;</span> <u style= "text-underline:double">51,110</u></span></b></span> </p> </td> <td width="23" valign="top" style= "width:17.35pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;&#160;</span> <u style= "text-underline: double">51,951</u></span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;&#160;</span> <u style= "text-underline: double">51,658</u></span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:7"> <td width="295" valign="top" style= "width:221.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="145" valign="top" style= "width:108.65pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="23" valign="top" style= "width:17.35pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:8"> <td width="295" valign="top" style= "width:221.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:9.0pt; font-family:Courier New">Disease Distribution of Unresolved</span></u></b></span> </p> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:9.0pt; font-family:Courier New">Claims</span></u></b></span> </p> </td> <td width="145" valign="top" style= "width:108.65pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="23" valign="top" style= "width:17.35pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="192" colspan="2" valign="top" style= "width:2.0in;border:none;border-bottom: solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">&#160;</span></b></span> </p> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">December 31,</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:9"> <td width="295" valign="top" style= "width:221.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="145" valign="top" style= "width:108.65pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">June 30, 2009</span></b></span> </p> </td> <td width="23" valign="top" style= "width:17.35pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;&#160;</span> <u>2008</u></span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;border:none;border-top:solid windowtext 1.0pt; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;&#160;</span> <u>2007</u></span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:10"> <td width="295" valign="top" style= "width:221.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">Mesothelioma and Other Cancer Claims</span></b></span> </p> </td> <td width="145" valign="top" style= "width:108.65pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;&#160;&#160;&#160;&#160;</span> 5,787</span></b></span> </p> </td> <td width="23" valign="top" style= "width:17.35pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;&#160;&#160;</span> 5,575</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;&#160;&#160;</span> 5,011</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:11"> <td width="295" valign="top" style= "width:221.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">Other Claims</span></b></span> </p> </td> <td width="145" valign="top" style= "width:108.65pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;&#160;&#160;&#160;</span> <u>45,323</u></span></b></span> </p> </td> <td width="23" valign="top" style= "width:17.35pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;&#160;</span> <u>46,376</u></span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;&#160;</span> <u>46,647</u></span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:12;mso-yfti-lastrow:yes"> <td width="295" valign="top" style= "width:221.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;</span> Total Claims</span></b></span> </p> </td> <td width="145" valign="top" style= "width:108.65pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;&#160;&#160;&#160;</span> <u style= "text-underline:double">51,110</u></span></b></span> </p> </td> <td width="23" valign="top" style= "width:17.35pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;&#160;</span> <u style= "text-underline: double">51,951</u></span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;&#160;</span> <u style= "text-underline: double">51,658</u></span></b></span> </p> </td> </tr> </table> <p class="MsoNormal"> <span><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> <p class="MsoNormal" style= "margin-top:8.0pt;text-align:justify;text-indent:.5in"> <span><b style="mso-bidi-font-weight: normal"><span style= "font-size:10.0pt;font-family:Courier New">Approximately 45 percent of the approximately 51,000 pending claims at June 30, 2009 are on the inactive, deferred, or similar dockets established in some jurisdictions for claimants who allege minimal or no impairment. The approximately 51,000 pending claims also include claims filed in jurisdictions such as Texas, Virginia, and Mississippi that historically allowed for consolidated filings. In these jurisdictions, plaintiffs were permitted to file complaints against a pre-determined master list of defendants, regardless of whether they have claims against each individual defendant. Many of these plaintiffs may not actually intend to assert claims against Honeywell. Based on state rules and prior experience in these jurisdictions, we anticipate that many of these claims will ultimately be dismissed.</span></b></span> </p> <p class="MsoNormal" style= "margin-top:8.0pt;text-align:justify;text-indent:.5in"> <span><b style="mso-bidi-font-weight: normal"><span style= "font-size:10.0pt;font-family:Courier New">Honeywell has experienced average resolution values per claim excluding legal costs as follows:</span></b></span> </p> <p class="MsoNormal"> <span><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" width="655" style= "width:491.4pt;border-collapse:collapse;mso-yfti-tbllook:480;mso-padding-alt: 0in 5.4pt 0in 5.4pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="307" valign="top" style= "width:3.2in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="348" colspan="3" valign="top" style= "width:261.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:10.0pt; font-family:Courier New">&#160;&#160;&#160;&#160;&#160;Years Ended December 31,&#160;&#160;&#160;&#160;&#160;</span></u></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:1"> <td width="307" valign="top" style= "width:3.2in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:10.0pt; font-family:Courier New">2008</span></u></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:10.0pt; font-family:Courier New">2007</span></u></b></span> </p> </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:10.0pt; font-family:Courier New">2006</span></u></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:2"> <td width="307" valign="top" style= "width:3.2in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="348" colspan="3" valign="top" style= "width:261.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">(in whole dollars)</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:3"> <td width="307" valign="top" style= "width:3.2in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Malignant claims</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;</span> $65,000</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;</span> $33,000</span></b></span> </p> </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;</span> $33,000</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:4;mso-yfti-lastrow:yes"> <td width="307" valign="top" style= "width:3.2in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Nonmalignant claims</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;</span> $1,500</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;&#160;</span> $500</span></b></span> </p> </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;&#160;</span> $250</span></b></span> </p> </td> </tr> </table> <p class="MsoNormal" style= "margin-top:8.0pt;text-align:justify;text-indent:.5in"> <span><b style="mso-bidi-font-weight: normal"><span style= "font-size:10.0pt;font-family:Courier New">It is not possible to predict whether resolution values for Bendix related asbestos claims will increase, decrease or stabilize in the future.</span></b></span> </p> <p class="MsoNormal" style= "margin-top:8.0pt;text-align:justify;text-indent:.5in"> <span><b style="mso-bidi-font-weight: normal"><span style= "font-size:10.0pt;font-family:Courier New">Our consolidated financial statements reflect an estimated liability for resolution of pending and future Bendix related asbestos claims of $596 and $578 million at June 30, 2009 and December 31, 2008, respectively. The estimated liability for future claims represents the estimated value of future asbestos related bodily injury claims expected to be asserted against Bendix over the next five years. In light of the uncertainties inherent in making long-term projections, as well as certain factors unique to friction product asbestos claims, we do not believe that we have a reasonable basis for estimating asbestos claims beyond the next five years under SFAS No. 5, &#8220;Accounting for Contingencies&#8221;. The estimate is based upon Bendix historical experience in the tort system for the three years ended December 31, 2008 with respect to claims filing and resolution values. The methodology used to estimate the liability for future claims has been commonly accepted by numerous courts. It is similar to that used to estimate the future NARCO related asbestos claims liability.</span></b></span> </p> <p class="MsoNormal" style= "margin-top:8.0pt;text-align:justify;text-indent:.5in"> <span><b style="mso-bidi-font-weight: normal"><span style= "font-size:10.0pt;font-family:Courier New">Honeywell currently has approximately $1.9 billion of insurance coverage remaining with respect to pending and potential future Bendix related asbestos claims, of which $167 and $156 million are reflected as receivables in our consolidated balance sheet at June 30, 2009 and December 31, 2008, respectively. This coverage is provided by a large number of insurance policies written by dozens of insurance companies in both the domestic insurance market and the London excess market. Insurance receivables are recorded in the financial statements simultaneous with the recording of the liability for the estimated value of the underlying asbestos claims. The amount of the insurance receivable recorded is based on our ongoing analysis of the insurance that we estimate is probable of recovery. This determination is based on our analysis of the underlying insurance policies, our historical experience with our insurers, our ongoing review of the solvency of our insurers, our interpretation of judicial determinations relevant to our insurance programs, and our consideration of the impacts of any settlements reached with our insurers. Insurance receivables are also recorded when structured insurance settlements provide for future fixed payment streams that are not contingent upon future claims or other events. Such amounts are recorded at the net present value of the fixed payment stream.</span></b></span> </p> <p class="MsoNormal" style= "margin-top:8.0pt;text-align:justify;text-indent:.5in"> <span><b style="mso-bidi-font-weight: normal"><span style= "font-size:10.0pt;font-family:Courier New">On a cumulative historical basis, Honeywell has recorded insurance receivables equal to approximately 50 percent of the value of the underlying asbestos claims recorded. However, because there are gaps in our coverage due to insurance company insolvencies, certain uninsured periods, and insurance settlements, this rate is expected to decline for any future Bendix related asbestos liabilities that may be recorded. Future recoverability rates may also be impacted by numerous other factors, such as future insurance settlements, insolvencies and judicial determinations relevant to our coverage program, which are difficult to predict. Assuming continued defense and indemnity spending at current levels, we estimate that the cumulative recoverability rate could decline over the next five years to approximately 40 percent.</span></b></span> </p> <p class="MsoNormal" style= "margin-top:8.0pt;text-align:justify;text-indent:.5in"> <span><b style="mso-bidi-font-weight: normal"><span style= "font-size:10.0pt;font-family:Courier New">Honeywell believes it has sufficient insurance coverage and reserves to cover all pending Bendix related asbestos claims and Bendix related asbestos claims estimated to be filed within the next five years. Although it is impossible to predict the outcome of either pending or future Bendix related asbestos claims, we do not believe that such claims would have a material adverse effect on our consolidated financial position in light of our insurance coverage and our prior experience in resolving such claims. If the rate and types of claims filed, the average resolution value of such claims and the period of time over which claim settlements are paid (collectively, the &#8220;Variable Claims Factors&#8221;) do not substantially change, Honeywell would not expect future Bendix related asbestos claims to have a material adverse effect on our results of operations or operating cash flows in any fiscal year. No assurances can be given, however, that the Variable Claims Factors will not change.</span></b></span> </p> <p class="MsoNormal" style= "margin-top:8.0pt;text-align:justify;text-indent:.5in"> <span><b style="mso-bidi-font-weight: normal"><span style= "font-size:10.0pt;font-family:Courier New">The following tables summarize information concerning NARCO and Bendix asbestos related balances:</span></b></span> </p> <p class="MsoNormal" style= "margin-top:8.0pt;text-align:justify;text-indent:.5in"> <span><b style="mso-bidi-font-weight: normal"><span style= "font-size:10.0pt;font-family:Courier New">&#160;</span></b></span> </p> <p class="MsoNormal" style="mso-outline-level:1"> <span><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Asbestos Related Liabilities</span></b></span> </p> <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" width="667" style= "width:6.95in;border-collapse:collapse;mso-yfti-tbllook:480;mso-padding-alt: 0in 5.4pt 0in 5.4pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="415" valign="top" style= "width:311.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="252" colspan="3" valign="top" style= "width:189.0pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">Six Months Ended</span></b></span> </p> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">&#160;&#160;&#160;&#160;&#160; June 30, 2009 &#160;&#160;&#160;&#160;&#160;</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:1"> <td width="415" valign="top" style= "width:311.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:9.0pt; font-family:Courier New">Bendix</span></u></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;border:none;border-top:solid windowtext 1.0pt; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= 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style= "mso-spacerun:yes">&#160;</span> $ 578</span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;</span>$1,131</span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;</span>$1,709</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:3"> <td width="415" valign="top" style= "width:311.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">Accrual for update to estimated liability</span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;&#160;</span> <span style= "mso-spacerun:yes">&#160;</span>83</span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;&#160;&#160;&#160;</span> 2</span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;&#160;</span> <span style= "mso-spacerun:yes">&#160;</span>85</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:4"> <td width="415" valign="top" style= "width:311.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">Asbestos related liability payments</span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;</span> <u><span style= "mso-spacerun:yes">&#160;&#160;</span>(65</u>)</span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;</span><u><span style= "mso-spacerun:yes">&#160;</span> <span style= "mso-spacerun:yes">&#160;</span><span style= "mso-spacerun:yes">&#160;</span>(1)</u></span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;</span><u><span style= "mso-spacerun:yes">&#160;</span> <span style= "mso-spacerun:yes">&#160;</span>(66</u>)</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:5;mso-yfti-lastrow:yes"> <td width="415" valign="top" style= "width:311.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">End of period</span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;</span> <u style= "text-underline: double">$ 596</u></span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;</span><u style= "text-underline: double">$1,132</u></span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;</span><u style= "text-underline: double">$1,728</u></span></b></span> </p> </td> </tr> </table> <p class="MsoNormal"> <span><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> <p class="MsoNormal" style="mso-outline-level:1"> <span><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Insurance Recoveries for Asbestos Related Liabilities</span></b></span> </p> <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" width="667" style= "width:6.95in;border-collapse:collapse;mso-yfti-tbllook:480;mso-padding-alt: 0in 5.4pt 0in 5.4pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="415" valign="top" style= "width:311.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="252" colspan="3" valign="top" style= "width:189.0pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">Six Months Ended</span></b></span> </p> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">&#160;&#160;&#160;&#160;&#160; June 30, 2009 &#160;&#160;&#160;&#160;&#160;</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:1"> <td width="415" valign="top" style= "width:311.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:9.0pt; font-family:Courier New">Bendix</span></u></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;border:none;border-top:solid windowtext 1.0pt; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:9.0pt; font-family:Courier New">NARCO</span></u></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;border:none;border-top:solid windowtext 1.0pt; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:9.0pt; font-family:Courier New">Total</span></u></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:2"> <td width="415" valign="top" style= "width:311.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">Beginning of 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style= "width:311.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">Probable insurance recoveries related to <span style= "mso-spacerun:yes">&#160;</span><span style= "mso-spacerun:yes">&#160;&#160;</span></span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;&#160;&#160;</span> <span style= "mso-spacerun:yes">&#160;</span><span style= "mso-spacerun:yes">&#160;</span></span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;&#160;&#160;&#160;</span></span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;&#160;&#160;</span> <span style= "mso-spacerun:yes">&#160;</span></span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:4"> <td width="415" valign="top" style= "width:311.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;</span> estimated liability</span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;&#160;&#160;</span> 12</span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;&#160;&#160;&#160;</span> -</span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;&#160;&#160;</span> 12</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:5"> <td width="415" valign="top" style= "width:311.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">Insurance receipts for asbestos related liabilities</span></b></span> </p> 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"font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;</span><u><span style= "mso-spacerun:yes">&#160;</span> <span style= "mso-spacerun:yes">&#160;</span><span style= "mso-spacerun:yes">&#160;</span>(5</u>)</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:6;mso-yfti-lastrow:yes"> <td width="415" valign="top" style= "width:311.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">End of period</span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;</span> <u style= "text-underline: double">$ 167</u></span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;</span><span style= "mso-spacerun:yes">&#160;</span> <u style= "text-underline:double">$873</u></span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;</span><u style= "text-underline: double">$1,040</u></span></b></span> </p> </td> </tr> </table> <p class="MsoNormal" style="text-indent:.5in"> <span><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> <p class="MsoNormal" style="text-indent:.5in"> <span><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> <p class="MsoNormal" style="text-indent:.5in"> 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"font-size:10.0pt;font-family: Courier New">December 31,</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:1"> <td width="439" valign="top" style= "width:329.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="92" valign="top" style= "width:69.2pt;border:none;border-bottom:solid windowtext 1.0pt; mso-border-bottom-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;</span> 2009</span></b></span> </p> </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;border-bottom:solid windowtext 1.0pt; mso-border-bottom-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;</span> 2008</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:2"> <td width="439" valign="top" style= "width:329.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Other current assets</span></b></span> </p> </td> <td width="92" valign="top" style= "width:69.2pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span>$<span 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style="margin-top:8.0pt"> <span><b><span style= "font-size:10.0pt;font-family:Courier New">Other Matters</span></b></span> </p> <p class="MsoNormal"> <span><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;mso-bidi-font-size: 12.0pt;font-family:Courier New"> &#160;</span></b></span> </p> <p class="MsoNormal" style= "margin-top:8.0pt;text-align:justify;text-indent:.5in"> <span><span style= "mso-bidi-font-size:10.0pt;font-family:Arial,sans-serif"><span style="mso-spacerun:yes"> &#160;</span></span></span><span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">We are subject to a number of other lawsuits, investigations and disputes (some of which involve substantial amounts claimed) arising out of the conduct of our business, including matters relating to commercial transactions, government contracts, product liability, prior acquisitions and divestitures, employee benefit plans, intellectual property, and health and safety matters. We recognize a liability for any contingency that is probable of occurrence and reasonably estimable. We continually assess the likelihood of adverse judgments of outcomes in these matters, as well as potential ranges of possible losses (taking into consideration any insurance recoveries), based on a careful analysis of each matter with the assistance of outside legal counsel and, if applicable, other experts. Included in these other matters are the following:</span></b></span> </p> <p class="MsoNormal" style= "margin-top:8.0pt;text-align:justify;text-indent:.5in"> <span><b><i><span style= "font-size:10.0pt;font-family:Courier New">Allen, et al. v. Honeywell Retirement Earnings Plan</span></i></b></span> <span><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#8212; Pursuant to a settlement approved by the U.S. District Court for the District of Arizona in February 2008, 18 of 21 claims alleged by plaintiffs in this class action lawsuit were dismissed with prejudice in exchange for approximately $35 million and the maximum aggregate liability for the remaining three claims (alleging that Honeywell impermissibly reduced the pension benefits of certain employees of a predecessor entity when the plan was amended in 1983 and failed to calculate benefits in accordance with the terms of the plan) was capped at $500 million. Any amounts payable, including the settlement amount, have or will be paid from the Company&#8217;s pension plan. We continue to expect to prevail on the remaining claims in light of applicable law and our substantial affirmative defenses, which have not yet been considered by the Court. Accordingly, we do not believe that a liability is probable of occurrence and reasonably estimable with respect to these claims and we have not recorded a provision for the remaining claims in our financial statements.</span></b></span> </p> <p class="MsoNormal" style= "margin-top:8.0pt;text-align:justify;text-indent:.5in"> <span><b><i><span style= "font-size:10.0pt;font-family:Courier New">Quick Lube</span></i></b></span> <span><b style= "mso-bidi-font-weight: normal"><span style= "font-size:10.0pt;font-family:Courier New">&#8212; On March 31, 2008, S&amp;E Quick Lube, a filter distributor, filed suit in U.S. District Court for the District of Connecticut alleging that twelve filter manufacturers, including Honeywell, engaged in a conspiracy to fix prices, rig bids and allocate U.S. customers for aftermarket automotive filters. This suit is a purported class action on behalf of direct purchasers of filters from the defendants. Parallel purported class actions, including on behalf of indirect purchasers of filters, have been filed by other plaintiffs in a variety of jurisdictions in the United States and Canada. The U.S cases have been consolidated into a single multi-district litigation in the Northern District of Illinois. We intend to vigorously defend the claims raised in these actions. The Antitrust Division of the Department of Justice (DOJ) is also investigating the allegations raised in these suits. We are fully cooperating with the DOJ investigation.</span></b></span> </p> <p class="MsoNormal" style= "margin-top:8.0pt;text-align:justify;text-indent:.5in"> <span><b style="mso-bidi-font-weight: normal"><span style= "font-size:10.0pt;font-family:Courier New">Given the uncertainty inherent in litigation and investigations (including the specific matters referenced above), we do not believe it is possible to develop estimates of reasonably possible loss in excess of current accruals for these matters. Considering our past experience and existing accruals, we do not expect the outcome of these matters, either individually or in the aggregate, to have a material adverse effect on our consolidated financial position. Because most contingencies are resolved over long periods of time, potential liabilities are subject to change due to new developments, changes in settlement strategy or the impact of evidentiary requirements, which could cause us to pay damage awards or settlements (or become subject to equitable remedies) that could have a material adverse effect on our results of operations or operating cash flows in the periods recognized or paid.</span></b></span> </p> <style> /*<![CDATA[*/ st1:*{behavior:url(#ieooui) } <!-- /* Font Definitions */ @font-face {font-family:"Cambria Math"; panose-1:2 4 5 3 5 4 6 3 2 4; mso-font-charset:0; mso-generic-font-family:roman; mso-font-pitch:variable; mso-font-signature:-1610611985 1107304683 0 0 159 0;} /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {mso-style-unhide:no; mso-style-qformat:yes; mso-style-parent:""; margin:0in; margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:12.0pt; font-family:"Times New Roman","serif"; mso-fareast-font-family:"Times New Roman";} .MsoChpDefault {mso-style-type:export-only; mso-default-props:yes; font-size:10.0pt; mso-ansi-font-size:10.0pt; mso-bidi-font-size:10.0pt;} @page Section1 {size:8.5in 11.0in; margin:1.0in 1.0in 1.0in 1.0in; mso-header-margin:.5in; mso-footer-margin:.5in; mso-paper-source:0;} div.Section1 {page:Section1;} --> /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-qformat:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman","serif";} /*]]>*/ </style> </div> <div> <p class="MsoNormal" style="mso-outline-level:1"> <a name="_AUC27bffd93df1d44d1886da3995ebcbb4e"><b style= "mso-bidi-font-weight: normal"><span style= "font-size:10.0pt;font-family:Courier New">NOTE 12. 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height:15.3pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt; height:15.3pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt; height:15.3pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="17" valign="top" style= "width:12.9pt;padding:0in 5.4pt 0in 5.4pt; height:15.3pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="91" valign="top" style= "width:68.1pt;padding:0in 5.4pt 0in 5.4pt; height:15.3pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt; height:15.3pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:3"> <td width="307" valign="top" style= "width:3.2in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Net income</span></b></span> </p> </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span>$460</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;</span> $728</span></b></span> </p> </td> <td width="17" valign="top" style= "width:12.9pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span></span></b></span> </p> </td> <td width="91" valign="top" style= "width:68.1pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">$<span style="mso-spacerun:yes">&#160;</span> 859</span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">$1,375</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:4"> <td width="307" valign="top" style= "width:3.2in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="17" valign="top" style= "width:12.9pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="91" valign="top" style= "width:68.1pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:5"> <td width="307" valign="top" style= "width:3.2in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Foreign exchange translation</span></b></span> </p> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span> adjustments</span></b></span> </p> </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span><span style= "mso-spacerun:yes">&#160;</span>389</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;</span> <span style= "mso-spacerun:yes">&#160;</span>(67)</span></b></span> </p> </td> <td width="17" valign="top" style= "width:12.9pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="91" valign="top" style= "width:68.1pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span><span style="mso-spacerun:yes">&#160;</span> 139</span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;</span> 177</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:6"> <td width="307" valign="top" style= "width:3.2in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Pension and postretirement</span></b></span> </p> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span> benefit adjustments</span></b></span> </p> </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;</span> 57</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;</span> <span style= "mso-spacerun:yes">&#160;</span>12</span></b></span> </p> </td> <td width="17" valign="top" style= "width:12.9pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="91" valign="top" style= "width:68.1pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;</span> <span style= "mso-spacerun:yes">&#160;</span>83</span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;</span> 25</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:7"> <td width="307" valign="top" style= "width:3.2in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Change in fair value of</span></b></span> </p> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span> effective cash flow hedges</span></b></span> </p> </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:10.0pt; font-family:Courier New"><span style="text-decoration:none"> &#160;</span></span></u></b></span> </p> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span> <span style= "mso-spacerun:yes">&#160;</span>46</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:10.0pt; font-family:Courier New"><span style="text-decoration:none"> &#160;</span></span></u></b></span> </p> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;</span> <span style= "mso-spacerun:yes">&#160;</span>(4)</span></b></span> </p> </td> <td width="17" valign="top" style= "width:12.9pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:10.0pt; font-family:Courier New"><span style="text-decoration:none"> &#160;</span></span></u></b></span> </p> </td> <td width="91" valign="top" style= "width:68.1pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:10.0pt; font-family:Courier New"><span style="text-decoration:none"> &#160;</span></span></u></b></span> </p> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span> <span style= "mso-spacerun:yes">&#160;&#160;</span>24</span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:10.0pt; font-family:Courier New"><span style="text-decoration:none"> &#160;</span></span></u></b></span> </p> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;</span> (2)</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:8"> <td width="307" valign="top" style= "width:3.2in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Change in unrealized losses on</span></b></span> </p> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span> available for sale investments (1)</span></b></span> </p> </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:10.0pt; font-family:Courier New"><span style="text-decoration:none"> &#160;</span></span></u></b></span> </p> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span> <u><span style= "mso-spacerun:yes">&#160;</span>45</u></span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:10.0pt; font-family:Courier New"><span style="text-decoration:none"> &#160;</span></span></u></b></span> </p> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;</span> <u><span style= "mso-spacerun:yes">&#160;</span><span style= "mso-spacerun:yes">&#160;</span><span style= "mso-spacerun:yes">&#160;</span>-</u></span></b></span> </p> </td> <td width="17" valign="top" style= "width:12.9pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:10.0pt; font-family:Courier New"><span style="text-decoration:none"> &#160;</span></span></u></b></span> </p> </td> <td width="91" valign="top" style= "width:68.1pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:10.0pt; font-family:Courier New"><span style="text-decoration:none"> &#160;</span></span></u></b></span> </p> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span> <u><span style= "mso-spacerun:yes">&#160;</span><span style= "mso-spacerun:yes">&#160;</span>51</u></span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:10.0pt; font-family:Courier New"><span style="text-decoration:none"> &#160;</span></span></u></b></span> </p> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;</span> <u><span style= "mso-spacerun:yes">&#160;&#160;</span>-</u></span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:9"> <td width="307" valign="top" style= "width:3.2in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span> 997</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;</span> <span style= "mso-spacerun:yes">&#160;</span>669</span></b></span> </p> </td> <td width="17" valign="top" style= "width:12.9pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:10.0pt; font-family:Courier New"><span style="text-decoration:none"> &#160;</span></span></u></b></span> </p> </td> <td width="91" valign="top" style= "width:68.1pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span>1,156</span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span>1,575</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:10"> <td width="307" valign="top" style= "width:3.2in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Comprehensive Income attributable to noncontrolling interest(2)</span></b></span> </p> </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:10.0pt; font-family:Courier New"><span style="text-decoration:none"> &#160;</span></span></u></b></span> </p> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span> <u>&#160;(9)</u></span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:10.0pt; font-family:Courier New"><span style="text-decoration:none"> &#160;</span></span></u></b></span> </p> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span 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New">&#160;</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="17" valign="top" style= "width:12.9pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="91" valign="top" style= "width:68.1pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:12;mso-yfti-lastrow:yes"> <td width="307" valign="top" style= "width:3.2in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Comprehensive Income/(Loss) attributable to Honeywell</span></b></span> </p> </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style="mso-bidi-font-weight:normal"><u style= "text-underline:double"><span style= "font-size:10.0pt;font-family:Courier New">$988</span></u></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style="mso-bidi-font-weight:normal"><u style= "text-underline:double"><span style= "font-size:10.0pt;font-family:Courier New">$664</span></u></b></span> </p> </td> <td width="17" 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New;mso-fareast-font-family:Courier New"><span style="mso-list: Ignore">(2)<span style="font:7.0pt Times New Roman">&#160;</span></span></span></b> <![endif]><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Comprehensive Income/(Loss) attributable to noncontrolling interest consisted predominately of net income.</span></b></span> </p> <p class="MsoNormal" style="margin-left:.25in"> <span><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> <p class="MsoNormal"> <span><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> <p class="MsoNormal"> <span><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Changes in Noncontrolling interest consist of the following:</span></b></span> </p> <p class="MsoNormal"> <span><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New;color:black">&#160;</span></b></span> </p> <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" width="415" style= "width:311.4pt;border-collapse:collapse;mso-padding-alt:0in 5.4pt 0in 5.4pt"> <tr style= "mso-yfti-irow:0;mso-yfti-firstrow:yes;height:12.75pt"> <td width="366" nowrap="nowrap" valign="bottom" style= "width:274.45pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">December 31, 2008</span></b></span> </p> </td> <td width="49" nowrap="nowrap" valign="bottom" style= "width:36.95pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt"> <p class="MsoNormal" style="text-align:justify"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">$82</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:1;height:12.75pt"> <td width="366" nowrap="nowrap" valign="bottom" style= "width:274.45pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span lang="IT" style= "font-size:10.0pt; font-family:Courier New;mso-ansi-language:IT" xml:lang="IT">Comprehensive Income/(Loss)attributable to noncontrolling interest</span></b></span> </p> </td> <td width="49" nowrap="nowrap" valign="bottom" style= "width:36.95pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt"> <p class="MsoNormal" style="text-align:justify"> <span><b style= "mso-bidi-font-weight:normal"><span lang="IT" style= "font-size:10.0pt; font-family:Courier New;mso-ansi-language:IT" xml:lang="IT"><span style= "mso-spacerun:yes">&#160;</span>1</span></b></span><span><b style="mso-bidi-font-weight:normal"><span style="font-size:10.0pt;font-family:Courier New">1</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:2;height:13.5pt"> <td width="366" nowrap="nowrap" valign="bottom" style= "width:274.45pt;padding:0in 5.4pt 0in 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width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:2"> <td width="427" valign="top" style= "width:4.45in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span> <span style= "mso-spacerun:yes">&#160;</span><span style= "mso-spacerun:yes">&#160;&#160;&#160;</span><span style= "mso-spacerun:yes">&#160;&#160;</span></span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;</span></span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:3"> <td width="427" valign="top" style= "width:4.45in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Floating rate notes due 2009</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span> $<span style="mso-spacerun:yes">&#160;&#160;</span> <span style= "mso-spacerun:yes">&#160;</span>-</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span> $<span style="mso-spacerun:yes">&#160;&#160;</span> 300</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:4"> <td width="427" valign="top" style= "width:4.45in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Floating rate notes due 2009</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;&#160;</span> 500</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;&#160;</span> 500</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:5"> <td width="427" valign="top" style= "width:4.45in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Zero coupon bonds and money multiplier notes</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:6"> <td width="427" valign="top" style= "width:4.45in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span> 13.0%-14.26%, due 2009</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;&#160;</span> 100</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;&#160;</span> 100</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:7"> <td width="427" valign="top" style= "width:4.45in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Floating rate notes due 2009-2011</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;&#160;</span> <span style= "mso-spacerun:yes">&#160;</span>-</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;&#160;</span> 193</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:8"> <td width="427" valign="top" style= "width:4.45in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">7.50% notes due 2010</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;</span> 1,000</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;</span> 1,000</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:9"> <td width="427" valign="top" style= "width:4.45in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">6-1/8% notes due 2011</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;&#160;</span> 500</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;&#160;</span> 500</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:10"> <td width="427" valign="top" style= "width:4.45in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">5.625% notes due 2012</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;&#160;</span> 400</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;&#160;</span> 400</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:11"> <td width="427" valign="top" style= "width:4.45in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">4.25% notes due 2013</span></b></span> </p> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">3.875% notes due 2014</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;&#160;</span> 600</span></b></span> </p> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;&#160;</span> 600</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;&#160;</span> 600</span></b></span> </p> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;&#160;&#160;</span> -</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:12"> <td width="427" valign="top" style= "width:4.45in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">5.40% notes due 2016</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;&#160;</span> 400</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;&#160;</span> 400</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:13"> <td width="427" valign="top" style= "width:4.45in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">5.30% notes due 2017</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;&#160;</span> 400</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;&#160;</span> 400</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:14"> <td width="427" valign="top" style= "width:4.45in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">5.30% notes due 2018</span></b></span> </p> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">5.00% notes due 2019</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;&#160;</span> 900</span></b></span> </p> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;&#160;</span> 900</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;&#160;</span> 900</span></b></span> </p> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;&#160;&#160;</span> -</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:15"> <td width="427" valign="top" style= "width:4.45in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Industrial development bond obligations, floating</span></b></span> </p> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span> rate maturing at various dates through 2037</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;&#160;&#160;</span> 60</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;&#160;&#160;</span> 60</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:16"> <td width="427" valign="top" style= "width:4.45in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">6-5/8% debentures due 2028</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;&#160;</span> 216</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;&#160;</span> 216</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:17"> <td width="427" valign="top" style= "width:4.45in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">9.065% debentures due 2033</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;&#160;&#160;</span> 51</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;&#160;&#160;</span> 51</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:18"> <td width="427" valign="top" style= "width:4.45in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">5.70% notes due 2036</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;&#160;</span> 550</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;&#160;</span> 550</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:19"> <td width="427" valign="top" style= "width:4.45in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">5.70% notes due 2037</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;&#160;</span> 600</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;&#160;</span> 600</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:20"> <td width="427" valign="top" style= "width:4.45in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Other (including capitalized leases), 1.54%-11.00%</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:21"> <td width="427" valign="top" style= "width:4.45in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span> maturing at various dates through 2017</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;</span> <u>&#160;&#160;&#160;101</u></span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;</span> <u>&#160;&#160;&#160;118</u></span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:22"> <td width="427" valign="top" style= "width:4.45in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;</span> 7,878</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;</span> 6,888</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:23"> <td width="427" valign="top" style= "width:4.45in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Less current portion</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span> <u><span style= "mso-spacerun:yes">&#160;</span>(1,627</u>)</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span> <u><span style= "mso-spacerun:yes">&#160;</span>(1,023</u>)</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:24;mso-yfti-lastrow:yes"> <td width="427" valign="top" style= "width:4.45in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span> <u style="text-underline: double">$ 6,251</u></span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span> <u style="text-underline: double">$ 5,865</u></span></b></span> </p> </td> </tr> </table> <p class="MsoNormal" style="mso-outline-level:1"> <span><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> <p class="MsoNormal" style="mso-outline-level:1"> <span><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">The schedule of principal payments on long term debt is as follows:</span></b></span> </p> <p class="MsoNormal"> <span><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" width="637" style= "width:477.9pt;border-collapse:collapse;mso-yfti-tbllook:480;mso-padding-alt: 0in 5.4pt 0in 5.4pt"> <tr style= "mso-yfti-irow:0;mso-yfti-firstrow:yes;page-break-inside:avoid"> <td width="433" valign="top" style= "width:324.9pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;mso-bidi-font-size: 12.0pt;font-family:Courier New;mso-bidi-font-family:Times New Roman"> &#160;</span></b></span> </p> </td> <td width="204" valign="top" style= "width:153.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:10.0pt; mso-bidi-font-size:12.0pt;font-family:Courier New;mso-bidi-font-family: Times New Roman"> At June 30, 2009</span></u></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:1;page-break-inside:avoid"> <td width="433" valign="top" style= "width:324.9pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;mso-bidi-font-size: 12.0pt;font-family:Courier New;mso-bidi-font-family:Times New Roman"> 2009</span></b></span> </p> </td> <td width="204" valign="top" style= "width:153.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;mso-bidi-font-size: 12.0pt;font-family:Courier New;mso-bidi-font-family:Times New Roman"> <span style="mso-spacerun:yes">&#160;&#160;&#160;&#160;&#160;</span> <span style="mso-spacerun:yes">&#160;</span>$ <span style= "mso-spacerun:yes">&#160;&#160;</span>622</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:2;page-break-inside:avoid"> <td width="433" valign="top" style= "width:324.9pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;mso-bidi-font-size: 12.0pt;font-family:Courier New;mso-bidi-font-family:Times New Roman"> 2010</span></b></span> </p> </td> <td width="204" valign="top" style= "width:153.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;mso-bidi-font-size: 12.0pt;font-family:Courier New;mso-bidi-font-family:Times New Roman"> <span style="mso-spacerun:yes">&#160;&#160;</span> <span style= "mso-spacerun:yes">&#160;&#160;&#160;&#160;&#160;&#160;</span>1,018</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:3;page-break-inside:avoid"> <td width="433" valign="top" style= "width:324.9pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;mso-bidi-font-size: 12.0pt;font-family:Courier New;mso-bidi-font-family:Times New Roman"> 2011</span></b></span> </p> </td> <td width="204" valign="top" style= "width:153.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;mso-bidi-font-size: 12.0pt;font-family:Courier New;mso-bidi-font-family:Times New Roman"> <span style="mso-spacerun:yes">&#160;&#160;</span> <span style= "mso-spacerun:yes">&#160;&#160;&#160;&#160;&#160;&#160;</span><span style= "mso-spacerun:yes">&#160;&#160;</span>519</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:4;page-break-inside:avoid"> <td width="433" valign="top" style= "width:324.9pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;mso-bidi-font-size: 12.0pt;font-family:Courier New;mso-bidi-font-family:Times New Roman"> 2012</span></b></span> </p> </td> <td width="204" valign="top" style= "width:153.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;mso-bidi-font-size: 12.0pt;font-family:Courier New;mso-bidi-font-family:Times New Roman"> <span style="mso-spacerun:yes">&#160;&#160;</span> <span style= "mso-spacerun:yes">&#160;&#160;&#160;&#160;&#160;&#160;</span><span style= "mso-spacerun:yes">&#160;&#160;</span>401</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:5;page-break-inside:avoid"> <td width="433" valign="top" style= "width:324.9pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;mso-bidi-font-size: 12.0pt;font-family:Courier New;mso-bidi-font-family:Times New Roman"> 2013</span></b></span> </p> </td> <td width="204" valign="top" style= "width:153.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;mso-bidi-font-size: 12.0pt;font-family:Courier New;mso-bidi-font-family:Times New Roman"> <span style="mso-spacerun:yes">&#160;</span> <span style= "mso-spacerun:yes">&#160;&#160;&#160;&#160;&#160;&#160;&#160;</span><span style= "mso-spacerun:yes">&#160;&#160;</span>605</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:6;page-break-inside:avoid"> <td width="433" valign="top" style= "width:324.9pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;mso-bidi-font-size: 12.0pt;font-family:Courier New;mso-bidi-font-family:Times New Roman"> Thereafter</span></b></span> </p> </td> <td width="204" valign="top" style= "width:153.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;mso-bidi-font-size: 12.0pt;font-family:Courier New;mso-bidi-font-family:Times New Roman"> <span style="mso-spacerun:yes">&#160;</span> <span style= "mso-spacerun:yes">&#160;&#160;&#160;&#160;&#160;&#160;</span><u>&#160;4,713</u></span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:7;page-break-inside:avoid"> <td width="433" valign="top" style= "width:324.9pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;mso-bidi-font-size: 12.0pt;font-family:Courier New;mso-bidi-font-family:Times New Roman"> &#160;</span></b></span> </p> </td> <td width="204" valign="top" style= "width:153.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;mso-bidi-font-size: 12.0pt;font-family:Courier New;mso-bidi-font-family:Times New Roman"> <span style="mso-spacerun:yes">&#160;&#160;&#160;&#160;&#160;&#160;&#160;</span> <span style= "mso-spacerun:yes">&#160;</span>7,878</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:8;page-break-inside:avoid"> <td width="433" valign="top" style= "width:324.9pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;mso-bidi-font-size: 12.0pt;font-family:Courier New;mso-bidi-font-family:Times New Roman"> Less-current portion</span></b></span> </p> </td> <td width="204" valign="top" style= "width:153.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;mso-bidi-font-size: 12.0pt;font-family:Courier New;mso-bidi-font-family:Times New Roman"> <span style="mso-spacerun:yes">&#160;&#160;&#160;&#160;&#160;&#160;&#160;</span> <u>(1,627</u>)</span></b></span> </p> </td> </tr> <tr style= "mso-yfti-irow:9;mso-yfti-lastrow:yes;page-break-inside:avoid"> <td width="433" valign="top" style= "width:324.9pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;mso-bidi-font-size: 12.0pt;font-family:Courier New;mso-bidi-font-family:Times New Roman"> &#160;</span></b></span> </p> </td> <td width="204" valign="top" style= "width:153.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;mso-bidi-font-size: 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height:12.75pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:9.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="29" nowrap="nowrap" valign="bottom" style= "width:22.0pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:9.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="66" nowrap="nowrap" valign="bottom" style= "width:49.45pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:9.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:9.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="81" nowrap="nowrap" valign="bottom" style= "width:60.75pt;padding:0in 5.4pt 0in 5.4pt; 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The terms and conditions of our credit sales are designed to mitigate or eliminate concentrations of credit risk with any single customer. Our sales are not materially dependent on a single customer or a small group of customers.</span></b></span> </p> <p class="MsoNormal"> <span><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> <p class="MsoNormal" style="text-indent:.5in"> <span><b><i><span style= "font-size:10.0pt;font-family:Courier New;color:black">Foreign Currency Risk Management&#8212;</span></i></b></span><span><b style="mso-bidi-font-weight:normal"><span style="font-size:10.0pt;font-family: Courier New;color:black">We conduct our business on a multinational basis in a wide variety of foreign currencies. Our exposure to market risk for changes in foreign currency exchange rates arises from international financing activities between subsidiaries, foreign currency denominated monetary assets and liabilities and transactions arising from international trade. Our objective is to preserve the economic value of non-functional currency denominated cash flows. We attempt to hedge transaction exposures with natural offsets to the fullest extent possible and, once these opportunities have been exhausted, through foreign currency exchange forward and option contracts with third parties.</span></b></span> </p> <p class="MsoNormal"> <span><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> <p class="MsoNormal" style="text-indent:.5in"> <span><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New;color:black">We hedge monetary assets and liabilities denominated in non-functional currencies. Prior to conversion into U.S. dollars, these assets and liabilities are remeasured at spot exchange rates in effect on the balance sheet date. The effects of changes in spot rates are recognized in earnings and included in Other (Income) Expense.</span></b></span> </p> <p class="MsoNormal"> <span><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> <p class="MsoNormal" style="text-indent:.5in"> <span><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New;color:black">We partially hedge forecasted sales and purchases, which predominantly</span></b></span> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New;color:black">occur in the next twelve months and are denominated in non-functional currencies, with currency forward contracts. Changes in the forecasted non-functional currency cash flows due to movements in exchange rates are substantially offset by changes in the fair value of the currency forward contracts designated as hedges. Market value gains and losses on these contracts are recognized in earnings when the hedged transaction is recognized. Open foreign currency exchange forward contracts mature predominantly</span></b></span> <span><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New;color:black">in the next twelve months. At June 30, 2009, we had contracts with notional amounts of $3,622 million to exchange foreign currencies, principally the US dollar, Euro, British pound,</span></b></span> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family:Courier New;color:black">Canadian dollar, Hong Kong dollar, Mexican peso, Swiss franc, Czech koruna, Chinese renminbi, Indian rupee and Japanese yen.</span></b></span> </p> <p class="MsoNormal"> <span><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> <p class="MsoNormal" style="text-indent:.5in"> <span><b><i><span style= "font-size:10.0pt;font-family:Courier New;color:black">Commodity Price Risk Management&#8212;</span></i></b></span><span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New;color:black">Our exposure to market risk for commodity prices can result in changes in our cost of production. We primarily mitigate our exposure to commodity price risk through the use of long-term, fixed-price contracts with our suppliers and formula price agreements with suppliers and customers. We also enter into forward commodity contracts with third parties designated as hedges of anticipated purchases of several commodities. Forward commodity contracts are marked-to-market, with the resulting gains and losses recognized in earnings when the hedged transaction is recognized. At June 30, 2009, we had contracts with notional amounts of $20 million related to forward commodity agreements, principally base metals and natural gas.</span></b></span> </p> <p class="MsoNormal"> <span><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> <p class="MsoNormal" style="text-indent:.5in"> <span><b><i><span style= "font-size:10.0pt;font-family:Courier New;color:black">Interest Rate Risk Management&#8212;</span></i></b></span><span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New;color:black">We use a combination of financial instruments, including long-term, medium-term and short-term financing, variable-rate commercial paper, and interest rate swaps to manage the interest rate mix of our total debt portfolio and related overall cost of borrowing. At June 30, 2009, interest rate swap agreements designated as fair value hedges effectively changed $600 million of fixed rate debt at a rate of 3.875 percent to LIBOR based floating debt. 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height:11.75pt"> <p class="MsoNormal" align="center" style= "margin-left:.05in;text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt"> <p class="MsoNormal" style="margin-left:.05in"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="98" nowrap="nowrap" valign="bottom" style= "width:73.2pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt;height:11.75pt"> <p class="MsoNormal" style="margin-left:.05in"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="99" valign="top" style= "width:74.4pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt;height:11.75pt"> <p class="MsoNormal" style="margin-left:.05in"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:2;height:11.75pt"> <td width="309" nowrap="nowrap" valign="bottom" style= "width:232.1pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt"> <p class="MsoNormal" style="margin-left:.05in"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">Assets:</span></b></span> </p> </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt"> <p class="MsoNormal" style="margin-left:.05in"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="98" nowrap="nowrap" valign="bottom" style= "width:73.2pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt"> <p class="MsoNormal" style="margin-left:.05in"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="99" valign="top" style= "width:74.4pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt"> <p class="MsoNormal" style="margin-left:.05in"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:3;height:11.75pt"> <td width="309" nowrap="nowrap" valign="bottom" style= "width:232.1pt;padding:0in 5.4pt 0in 5.4pt; 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height:11.75pt"> <p class="MsoNormal" style="margin-left:.05in"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span>Available for sale investments</span></b></span> </p> </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt"> <p class="MsoNormal" style="margin-left:.05in"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="98" nowrap="nowrap" valign="bottom" style= "width:73.2pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt"> <p class="MsoNormal" align="center" style= "margin-left:.05in;text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span>43</span></b></span> </p> </td> <td width="99" valign="bottom" style= "width:74.4pt;padding:0in 5.4pt 0in 5.4pt; 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height:11.75pt"> <p class="MsoNormal" style="margin-left:.05in"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="98" nowrap="nowrap" valign="bottom" style= "width:73.2pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt"> <p class="MsoNormal" align="center" style= "margin-left:.05in;text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span>-</span></b></span> </p> </td> <td width="99" valign="top" style= "width:74.4pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt"> <p class="MsoNormal" align="center" style= "margin-left:.05in;text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">-</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:7;height:11.75pt"> <td width="309" nowrap="nowrap" valign="bottom" style= "width:232.1pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt"> <p class="MsoNormal" style="margin-left:.05in"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">Liabilities:</span></b></span> </p> </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt"> <p class="MsoNormal" style="margin-left:.05in"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="98" nowrap="nowrap" valign="bottom" style= "width:73.2pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt"> <p class="MsoNormal" align="center" style= "margin-left:.05in;text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="99" valign="top" style= "width:74.4pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt"> <p class="MsoNormal" align="center" style= "margin-left:.05in;text-align:center; 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height:7.45pt"> <p class="MsoNormal" style="margin-left:.05in"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="99" valign="top" style= "width:74.4pt;padding:0in 5.4pt 0in 5.4pt; height:7.45pt"> <p class="MsoNormal" style="margin-left:.05in"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> </tr> </table> </div> <p style= "margin-top:5.95pt;margin-right:0in;margin-bottom:0in;margin-left: 0in;margin-bottom:.0001pt;text-indent:.5in"> <span><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">The foreign currency exchange contracts, interest rate swap agreements, and forward commodity contracts are valued using broker quotations, or market transactions in either the listed or over-the-counter markets. 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border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:13.5pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">Designated as Hedging Instruments</span></b></span> </p> </td> <td width="396" nowrap="nowrap" colspan="3" valign="bottom" style= "width:297.0pt;border: none;border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:13.5pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">Asset Derivatives</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:1;height:31.5pt"> <td width="156" valign="bottom" style= "width:117.0pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-top-alt:solid windowtext .5pt;mso-border-top-alt: solid windowtext .5pt;mso-border-bottom-alt:solid windowtext .5pt;padding: 0in 5.4pt 0in 5.4pt;height:31.5pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">Balance Sheet Location</span></b></span> </p> </td> <td width="108" nowrap="nowrap" valign="bottom" style= "width:81.0pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-top-alt:solid windowtext .5pt; mso-border-top-alt:solid windowtext .5pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:31.5pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">June 30, 2009</span></b></span> </p> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">Fair Value</span></b></span> </p> </td> <td width="132" valign="bottom" style= "width:99.0pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-top-alt:solid windowtext .5pt;mso-border-top-alt: solid windowtext .5pt;mso-border-bottom-alt:solid windowtext .5pt;padding: 0in 5.4pt 0in 5.4pt;height:31.5pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">December 31, 2008 Fair Value</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:2;height:13.5pt"> <td width="228" nowrap="nowrap" valign="bottom" style= "width:171.0pt;border:none; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><i><span style= "font-size:8.0pt;font-family:Courier New;mso-bidi-font-weight:bold"> &#160;</span></i></span> </p> <p class="MsoNormal" align="center" style= "text-align:center"> <span><i><span style= "font-size:8.0pt;font-family:Courier New;mso-bidi-font-weight:bold"> Foreign currency exchange contracts</span></i></span> </p> </td> <td width="156" nowrap="nowrap" valign="bottom" style= "width:117.0pt;border:none; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><span style= "font-size:8.0pt;font-family:Courier New;mso-bidi-font-weight:bold"> Accounts, notes, and other receivables</span></span> </p> </td> <td width="108" nowrap="nowrap" valign="bottom" style= "width:81.0pt;border:none; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><span style= "font-size:8.0pt;font-family:Courier New;mso-bidi-font-weight:bold"> $44</span></span> </p> </td> <td width="132" valign="bottom" style= "width:99.0pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><span style= "font-size:8.0pt;font-family:Courier New;mso-bidi-font-weight:bold"> $2</span></span> </p> </td> </tr> <tr style="mso-yfti-irow:3;height:23.4pt"> <td width="228" nowrap="nowrap" valign="bottom" style= "width:171.0pt;padding:0in 5.4pt 0in 5.4pt; height:23.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><i><span style= "font-size:8.0pt;font-family:Courier New;mso-bidi-font-weight:bold"> Interest rate swap agreements</span></i></span> </p> </td> <td width="156" nowrap="nowrap" valign="bottom" style= "width:117.0pt;padding:0in 5.4pt 0in 5.4pt; height:23.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><span style= "font-size:8.0pt;font-family:Courier New;mso-bidi-font-weight:bold"> Other assets</span></span> </p> </td> <td width="108" nowrap="nowrap" valign="bottom" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt; height:23.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><span style= "font-size:8.0pt;font-family:Courier New;mso-bidi-font-weight:bold"> <span style="mso-spacerun:yes">&#160;</span>1</span></span> </p> </td> <td width="132" valign="bottom" style= "width:99.0pt;padding:0in 5.4pt 0in 5.4pt; height:23.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><span style= "font-size:8.0pt;font-family:Courier New;mso-bidi-font-weight:bold"> <span style="mso-spacerun:yes">&#160;</span>-</span></span> </p> </td> </tr> <tr style="mso-yfti-irow:4;height:23.4pt"> <td width="228" nowrap="nowrap" valign="bottom" style= "width:171.0pt;padding:0in 5.4pt 0in 5.4pt; height:23.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><i><span style= "font-size:8.0pt;font-family:Courier New;mso-bidi-font-weight:bold"> Commodity contracts</span></i></span> </p> </td> <td width="156" nowrap="nowrap" valign="bottom" style= "width:117.0pt;padding:0in 5.4pt 0in 5.4pt; height:23.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><span style= "font-size:8.0pt;font-family:Courier New;mso-bidi-font-weight:bold"> Accounts, notes, and other receivables</span></span> </p> </td> <td width="108" nowrap="nowrap" valign="bottom" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt; height:23.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><span style= "font-size:8.0pt;font-family:Courier New;mso-bidi-font-weight:bold"> <span style="mso-spacerun:yes">&#160;</span>-</span></span> </p> </td> <td width="132" valign="bottom" style= "width:99.0pt;padding:0in 5.4pt 0in 5.4pt; height:23.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><span style= "font-size:8.0pt;font-family:Courier New;mso-bidi-font-weight:bold"> <span style="mso-spacerun:yes">&#160;</span>-</span></span> </p> </td> </tr> <tr style="mso-yfti-irow:5;height:13.5pt"> <td width="228" nowrap="nowrap" valign="bottom" style= "width:171.0pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><span style= "font-size:8.0pt;font-family:Courier New;mso-bidi-font-weight:bold"> &#160;</span></span> </p> </td> <td width="156" nowrap="nowrap" valign="bottom" style= "width:117.0pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><span style= "font-size:8.0pt;font-family:Courier New;mso-bidi-font-weight:bold"> &#160;</span></span> </p> </td> <td width="240" nowrap="nowrap" colspan="2" valign="bottom" style= "width:2.5in;padding:0in 5.4pt 0in 5.4pt; height:13.5pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><span style= "font-size:8.0pt;font-family:Courier New;mso-bidi-font-weight:bold"> &#160;</span></span> </p> </td> </tr> <tr style="mso-yfti-irow:6;height:.4in"> <td width="228" valign="bottom" style= "width:171.0pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:.4in"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">Not Designated as Hedging Instruments</span></b></span> </p> </td> <td width="156" nowrap="nowrap" valign="bottom" style= "width:117.0pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:.4in"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">Balance Sheet Location</span></b></span> </p> </td> <td width="108" nowrap="nowrap" valign="bottom" style= "width:81.0pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:.4in"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">June 30, 2009</span></b></span> </p> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">Fair Value</span></b></span> </p> </td> <td width="132" valign="bottom" style= "width:99.0pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:.4in"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">December 31, 2008 Fair Value</span></b></span> </p> </td> </tr> <tr style= "mso-yfti-irow:7;mso-yfti-lastrow:yes;height:24.3pt"> <td width="228" nowrap="nowrap" valign="bottom" style= "width:171.0pt;border:none; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt; height:24.3pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><i><span style= "font-size:8.0pt;font-family:Courier New;mso-bidi-font-weight:bold"> Foreign currency exchange contracts</span></i></span> </p> </td> <td width="156" nowrap="nowrap" valign="bottom" style= "width:117.0pt;border:none; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt; height:24.3pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><span style= "font-size:8.0pt;font-family:Courier New;mso-bidi-font-weight:bold"> Accounts, notes, and other receivables</span></span> </p> </td> <td width="108" nowrap="nowrap" valign="bottom" style= "width:81.0pt;border:none; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt; height:24.3pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><span style= "font-size:8.0pt;font-family:Courier New;mso-bidi-font-weight:bold"> $1</span></span> </p> </td> <td width="132" valign="bottom" style= "width:99.0pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt;height:24.3pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><span style= "font-size:8.0pt;font-family:Courier New;mso-bidi-font-weight:bold"> $5</span></span> </p> </td> </tr> </table> <p class="MsoNormal" style= "margin-right:.9pt;mso-layout-grid-align:none; text-autospace:none;mso-prop-change:Honeywell 20090717T1145"> <span><b style="mso-bidi-font-weight: normal"><span style= "font-size:10.0pt;font-family:Courier New">&#160;</span></b></span> </p> <table class="MsoNormalTable" border="1" cellspacing="0" cellpadding="0" width="624" style= "width:6.5in;margin-left:5.4pt;border-collapse:collapse;border:none; mso-border-bottom-alt:solid windowtext .5pt;mso-padding-alt:0in 5.4pt 0in 5.4pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes;height:.25in"> <td width="228" rowspan="2" valign="bottom" style= "width:171.0pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:.25in"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">Designated as Hedging Instruments</span></b></span> </p> </td> <td width="396" nowrap="nowrap" colspan="3" valign="bottom" style= "width:297.0pt;border: none;border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:.25in"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">Liability Derivatives</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:1;height:41.25pt"> <td width="156" valign="bottom" style= "width:117.0pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-top-alt:solid windowtext .5pt;mso-border-top-alt: solid windowtext .5pt;mso-border-bottom-alt:solid windowtext .5pt;padding: 0in 5.4pt 0in 5.4pt;height:41.25pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">Balance Sheet Location</span></b></span> </p> </td> <td width="108" nowrap="nowrap" valign="bottom" style= "width:81.0pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-top-alt:solid windowtext .5pt; mso-border-top-alt:solid windowtext .5pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:41.25pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">June 30, 2009</span></b></span> </p> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">Fair Value</span></b></span> </p> </td> <td width="132" valign="bottom" style= "width:99.0pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-top-alt:solid windowtext .5pt;mso-border-top-alt: solid windowtext .5pt;mso-border-bottom-alt:solid windowtext .5pt;padding: 0in 5.4pt 0in 5.4pt;height:41.25pt"> <p class="MsoNormal" align="center" style= "margin-left:-5.4pt;text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">December 31, 2008 Fair Value</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:2;height:13.5pt"> <td width="228" nowrap="nowrap" valign="bottom" style= "width:171.0pt;border:none; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><i><span style= "font-size:8.0pt;font-family:Courier New;mso-bidi-font-weight:bold"> &#160;</span></i></span> </p> <p class="MsoNormal" align="center" style= "text-align:center"> <span><i><span style= "font-size:8.0pt;font-family:Courier New;mso-bidi-font-weight:bold"> Foreign currency exchange contracts</span></i></span> </p> </td> <td width="156" nowrap="nowrap" valign="bottom" style= "width:117.0pt;border:none; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><span style= "font-size:8.0pt;font-family:Courier New;mso-bidi-font-weight:bold"> Accrued liabilities</span></span> </p> </td> <td width="108" nowrap="nowrap" valign="bottom" style= "width:81.0pt;border:none; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><span style= "font-size:8.0pt;font-family:Courier New;mso-bidi-font-weight:bold"> $32</span></span> </p> </td> <td width="132" valign="bottom" style= "width:99.0pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><span style= "font-size:8.0pt;font-family:Courier New;mso-bidi-font-weight:bold"> $19</span></span> </p> </td> </tr> <tr style="mso-yfti-irow:3;height:23.4pt"> <td width="228" nowrap="nowrap" valign="bottom" style= "width:171.0pt;border:none; padding:0in 5.4pt 0in 5.4pt;height:23.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><i><span style= "font-size:8.0pt;font-family:Courier New;mso-bidi-font-weight:bold"> Interest rate swap agreements</span></i></span> </p> </td> <td width="156" nowrap="nowrap" valign="bottom" style= "width:117.0pt;border:none; padding:0in 5.4pt 0in 5.4pt;height:23.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><span style= "font-size:8.0pt;font-family:Courier New;mso-bidi-font-weight:bold"> Accrued liabilities</span></span> </p> </td> <td width="108" nowrap="nowrap" valign="bottom" style= "width:81.0pt;border:none; padding:0in 5.4pt 0in 5.4pt;height:23.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><span style= "font-size:8.0pt;font-family:Courier New;mso-bidi-font-weight:bold"> <span style="mso-spacerun:yes">&#160;</span><span style= "mso-spacerun:yes">&#160;</span>3</span></span> </p> </td> <td width="132" valign="bottom" style= "width:99.0pt;border:none;padding:0in 5.4pt 0in 5.4pt; height:23.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><span style= "font-size:8.0pt;font-family:Courier New;mso-bidi-font-weight:bold"> -</span></span> </p> </td> </tr> <tr style="mso-yfti-irow:4;height:23.4pt"> <td width="228" nowrap="nowrap" valign="bottom" style= "width:171.0pt;border:none; padding:0in 5.4pt 0in 5.4pt;height:23.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><i><span style= "font-size:8.0pt;font-family:Courier New;mso-bidi-font-weight:bold"> Commodity contracts</span></i></span> </p> </td> <td width="156" nowrap="nowrap" valign="bottom" style= "width:117.0pt;border:none; padding:0in 5.4pt 0in 5.4pt;height:23.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><span style= "font-size:8.0pt;font-family:Courier New;mso-bidi-font-weight:bold"> Accrued liabilities</span></span> </p> </td> <td width="108" nowrap="nowrap" valign="bottom" style= "width:81.0pt;border:none; padding:0in 5.4pt 0in 5.4pt;height:23.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><span style= "font-size:8.0pt;font-family:Courier New;mso-bidi-font-weight:bold"> <span style="mso-spacerun:yes">&#160;</span>1</span></span> </p> </td> <td width="132" valign="bottom" style= "width:99.0pt;border:none;padding:0in 5.4pt 0in 5.4pt; height:23.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><span style= "font-size:8.0pt;font-family:Courier New;mso-bidi-font-weight:bold"> <span style="mso-spacerun:yes">&#160;</span>4</span></span> </p> </td> </tr> <tr style="mso-yfti-irow:5;height:13.5pt"> <td width="228" nowrap="nowrap" valign="bottom" style= "width:171.0pt;border:none; padding:0in 5.4pt 0in 5.4pt;height:13.5pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><span style= "font-size:8.0pt;font-family:Courier New;mso-bidi-font-weight:bold"> &#160;</span></span> </p> </td> <td width="156" nowrap="nowrap" valign="bottom" style= "width:117.0pt;border:none; padding:0in 5.4pt 0in 5.4pt;height:13.5pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><span style= "font-size:8.0pt;font-family:Courier New;mso-bidi-font-weight:bold"> &#160;</span></span> </p> </td> <td width="240" nowrap="nowrap" colspan="2" valign="bottom" style= "width:2.5in;border:none; padding:0in 5.4pt 0in 5.4pt;height:13.5pt"> <p class="MsoNormal"> <span><span style= "font-size:8.0pt;font-family:Courier New;mso-bidi-font-weight:bold"> &#160;</span></span> </p> </td> </tr> <tr style="mso-yfti-irow:6;height:40.5pt"> <td width="228" valign="bottom" style= "width:171.0pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:40.5pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">Not Designated as Hedging Instruments</span></b></span> </p> </td> <td width="156" nowrap="nowrap" valign="bottom" style= "width:117.0pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:40.5pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">Balance Sheet Location</span></b></span> </p> </td> <td width="108" nowrap="nowrap" valign="bottom" style= "width:81.0pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:40.5pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">June 30, 2009</span></b></span> </p> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">Fair Value</span></b></span> </p> </td> <td width="132" valign="bottom" style= "width:99.0pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:40.5pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">December 31, 2008 Fair Value</span></b></span> </p> </td> </tr> <tr style= "mso-yfti-irow:7;mso-yfti-lastrow:yes;height:13.5pt"> <td width="228" nowrap="nowrap" valign="bottom" style= "width:171.0pt;border:none; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><i><span style= "font-size:8.0pt;font-family:Courier New;mso-bidi-font-weight:bold"> Foreign currency exchange contracts</span></i></span> </p> </td> <td width="156" nowrap="nowrap" valign="bottom" style= "width:117.0pt;border:none; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><span style= "font-size:8.0pt;font-family:Courier New;mso-bidi-font-weight:bold"> Accrued liabilities</span></span> </p> </td> <td width="108" nowrap="nowrap" valign="bottom" style= "width:81.0pt;border:none; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><span style= "font-size:8.0pt;font-family:Courier New;mso-bidi-font-weight:bold"> $3</span></span> </p> </td> <td width="132" valign="bottom" style= "width:99.0pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><span style= "font-size:8.0pt;font-family:Courier New;mso-bidi-font-weight:bold"> $14</span></span> </p> </td> </tr> </table> <p class="MsoNormal" style= "margin-right:.9pt;mso-layout-grid-align:none; text-autospace:none"> <span><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> <p class="MsoNormal" style= "margin-right:.9pt;text-indent:.5in;mso-layout-grid-align: none;text-autospace:none"> <span><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> <div align="center"> <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" width="654" style= "width:490.6pt;margin-left:5.05pt;border-collapse:collapse;mso-padding-alt: 0in 5.4pt 0in 5.4pt"> <tr style= "mso-yfti-irow:0;mso-yfti-firstrow:yes;height:57.0pt"> <td width="110" rowspan="2" valign="bottom" style= "width:82.6pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:57.0pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">Derivatives in Cash Flow Hedge Relationships</span></b></span> </p> </td> <td width="216" colspan="2" valign="bottom" style= "width:2.25in;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:57.0pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">Gain or (Loss) Recognized in OCI (Effective Portion)</span></b></span> </p> </td> <td width="120" rowspan="2" valign="bottom" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt; height:57.0pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">Location of Gain or (Loss) Reclassified from AOCI into Income (Effective Portion)</span></b></span> </p> </td> <td width="208" colspan="2" valign="bottom" style= "width:156.0pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:57.0pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">Gain or (Loss) Reclassified from AOCI into Income</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:1;height:12.75pt"> <td width="108" nowrap="nowrap" valign="bottom" style= "width:81.0pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-top-alt:solid windowtext .5pt; mso-border-top-alt:solid windowtext .5pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:12.75pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">Three Months Ended</span></b></span> </p> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">June 30, 2009</span></b></span> </p> </td> <td width="108" valign="bottom" style= "width:81.0pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-top-alt:solid windowtext .5pt;mso-border-top-alt: solid windowtext .5pt;mso-border-bottom-alt:solid windowtext .5pt;padding: 0in 5.4pt 0in 5.4pt;height:12.75pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">Six Months Ended</span></b></span> </p> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">June 30, 2009</span></b></span> </p> </td> <td width="108" valign="bottom" style= "width:81.0pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-top-alt:solid windowtext .5pt;mso-border-top-alt: solid windowtext .5pt;mso-border-bottom-alt:solid windowtext .5pt;padding: 0in 5.4pt 0in 5.4pt;height:12.75pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">Three Months Ended</span></b></span> </p> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">June 30, 2009</span></b></span> </p> </td> <td width="100" nowrap="nowrap" valign="bottom" style= "width:75.0pt;border-top:solid windowtext 1.0pt; border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none; mso-border-top-alt:solid windowtext .5pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:12.75pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">Six Months Ended</span></b></span> </p> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">June 30, 2009</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:2;height:12.75pt"> <td width="110" nowrap="nowrap" rowspan="3" valign= "bottom" style= "width:82.6pt;border:none; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><i style= "mso-bidi-font-style:normal"><span style= "font-size:8.0pt;font-family: Courier New">Foreign currency exchange contracts</span></i></span> </p> </td> <td width="108" nowrap="nowrap" rowspan="3" valign= "bottom" style= "width:81.0pt;border:none; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><span style= "font-size:8.0pt;font-family:Courier New">$33</span></span> </p> </td> <td width="108" rowspan="3" valign="bottom" style= "width:81.0pt;border:none; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><span style= "font-size:8.0pt;font-family:Courier New">&#160;</span></span> </p> <p class="MsoNormal" align="center" style= "text-align:center"> <span><span style= "font-size:8.0pt;font-family:Courier New">&#160;</span></span> </p> <p class="MsoNormal" align="center" style= "text-align:center"> <span><span style= "font-size:8.0pt;font-family:Courier New">$9</span></span> </p> </td> <td width="120" nowrap="nowrap" valign="bottom" style= "width:1.25in;border:none; border-top:solid windowtext 1.0pt;mso-border-top-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:12.75pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><span style= "font-size:8.0pt;font-family:Courier New">Product sales</span></span> </p> </td> <td width="108" valign="bottom" style= "width:81.0pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><span style= "font-size:8.0pt;font-family:Courier New">$12</span></span> </p> </td> <td width="100" nowrap="nowrap" valign="bottom" style= "width:75.0pt;border:none; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><span style= "font-size:8.0pt;font-family:Courier New">$10</span></span> </p> </td> </tr> <tr style="mso-yfti-irow:3;height:12.75pt"> <td width="120" nowrap="nowrap" valign="bottom" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt; height:12.75pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><span style= "font-size:8.0pt;font-family:Courier New">Cost of products sold</span></span> </p> </td> <td width="108" valign="bottom" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><span style= "font-size:8.0pt;font-family:Courier New"><span style="mso-spacerun:yes"> &#160;</span>(10)</span></span> </p> </td> <td width="100" nowrap="nowrap" valign="bottom" style= "width:75.0pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><span style= "font-size:8.0pt;font-family:Courier New"><span style="mso-spacerun:yes"> &#160;</span>(12)</span></span> </p> </td> </tr> <tr style="mso-yfti-irow:4;height:12.75pt"> <td width="120" nowrap="nowrap" valign="bottom" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt; height:12.75pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><span style= "font-size:8.0pt;font-family:Courier New">Sales &amp; General Administrative Expenses</span></span> </p> </td> <td width="108" valign="bottom" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><span style= "font-size:8.0pt;font-family:Courier New"><span style="mso-spacerun:yes"> &#160;</span>(2)</span></span> </p> </td> <td width="100" nowrap="nowrap" valign="bottom" style= "width:75.0pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><span style= "font-size:8.0pt;font-family:Courier New"><span style="mso-spacerun:yes"> &#160;</span>(2)</span></span> </p> </td> </tr> <tr style="mso-yfti-irow:5;height:10.5pt"> <td width="110" nowrap="nowrap" valign="bottom" style= "width:82.6pt;padding:0in 5.4pt 0in 5.4pt; height:10.5pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><i style= "mso-bidi-font-style:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></i></span> </p> </td> <td width="108" nowrap="nowrap" valign="bottom" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt; height:10.5pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><span style= "font-size:8.0pt;font-family:Courier New">&#160;</span></span> </p> </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt; height:10.5pt"> <p class="MsoNormal"> <span><span style= "font-size:8.0pt;font-family:Courier New">&#160;</span></span> </p> </td> <td width="120" nowrap="nowrap" valign="bottom" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt; height:10.5pt"> <p class="MsoNormal"> <span><span style= "font-size:8.0pt;font-family:Courier New">&#160;</span></span> </p> </td> <td width="108" valign="bottom" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt; height:10.5pt"> <p class="MsoNormal"> <span><span style= "font-size:8.0pt;font-family:Courier New">&#160;</span></span> </p> </td> <td width="100" nowrap="nowrap" valign="bottom" style= "width:75.0pt;padding:0in 5.4pt 0in 5.4pt; height:10.5pt"> <p class="MsoNormal"> <span><span style= "font-size:8.0pt;font-family:Courier New">&#160;</span></span> </p> </td> </tr> <tr style= "mso-yfti-irow:6;mso-yfti-lastrow:yes;height:24.3pt"> <td width="110" nowrap="nowrap" valign="bottom" style= "width:82.6pt;padding:0in 5.4pt 0in 5.4pt; height:24.3pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><i style= "mso-bidi-font-style:normal"><span style= "font-size:8.0pt;font-family: Courier New">Commodity contracts</span></i></span> </p> </td> <td width="108" nowrap="nowrap" valign="bottom" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt; height:24.3pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><span style= "font-size:8.0pt;font-family:Courier New">$8</span></span> </p> </td> <td width="108" valign="bottom" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt; height:24.3pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><span style= "font-size:8.0pt;font-family:Courier New">&#160;</span></span> </p> <p class="MsoNormal" align="center" style= "text-align:center"> <span><span style= "font-size:8.0pt;font-family:Courier New">$5</span></span> </p> </td> <td width="120" nowrap="nowrap" valign="bottom" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt; height:24.3pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><span style= "font-size:8.0pt;font-family:Courier New">Cost of products sold</span></span> </p> </td> <td width="108" valign="bottom" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt; height:24.3pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><span style= "font-size:8.0pt;font-family:Courier New"><span style="mso-spacerun:yes"> &#160;</span>($3)</span></span> </p> </td> <td width="100" nowrap="nowrap" valign="bottom" style= "width:75.0pt;padding:0in 5.4pt 0in 5.4pt; height:24.3pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><span style= "font-size:8.0pt;font-family:Courier New">($4)</span></span> </p> </td> </tr> </table> </div> <p class="MsoNormal" style= "margin-right:.9pt;text-indent:.5in;mso-layout-grid-align: none;text-autospace:none"> <span><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> <p class="MsoNormal" style= "margin-right:.9pt;text-indent:.5in;mso-layout-grid-align: none;text-autospace:none"> <span><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Ineffective portions of commodity derivative instruments designated in cash flow hedge relationships were ($0.2) million and ($0.4) million, respectively, in the second quarter and first six months of 2009 and are located in cost of products sold. Foreign currency exchange contracts in cash flow hedge relationships qualify as critical matched terms hedge relationships and as a result have no ineffectiveness.</span></b></span> </p> <p class="MsoNormal" style= "margin-right:.9pt;text-indent:.5in;mso-layout-grid-align: none;text-autospace:none"> <span><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> <p class="MsoNormal" style= "margin-right:.9pt;text-indent:.5in;mso-layout-grid-align: none;text-autospace:none"> <span><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Interest rate swap agreements are designated in SFAS No. 133 as hedge relationships with gains or (losses) on the derivative recognized in Interest and other financial charges offsetting the gains and losses on the underlying debt being hedged. 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padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">June 30, 2009</span></b></span> </p> </td> <td width="17" valign="top" style= "width:12.7pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="235" colspan="3" valign="top" style= "width:176.3pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">December 31, 2008</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:1"> <td width="187" valign="top" style= "width:1.95in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="72" valign="top" style= "width:.75in;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">Gross</span></b></span> </p> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">Carrying</span></b></span> </p> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:8.0pt; font-family:Courier New">&#160;Amount&#160;</span></u></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;border:none;border-top:solid windowtext 1.0pt; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">Accumulated</span></b></span> </p> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:8.0pt; font-family:Courier New">Amortization</span></u></b></span> </p> </td> <td width="72" valign="top" style= "width:.75in;border:none;border-top:solid windowtext 1.0pt; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= 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5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="17" valign="top" style= "width:12.7pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="67" valign="top" style= "width:50.3pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:3"> <td width="187" valign="top" style= "width:1.95in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">Intangible assets with</span></b></span> </p> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;</span> determinable lives:</span></b></span> </p> </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="17" valign="top" style= "width:12.7pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="67" valign="top" style= "width:50.3pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:4"> <td width="187" valign="top" style= "width:1.95in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;</span> Patents and technology</span></b></span> </p> </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;</span>$1,030</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;</span>$<span style= "mso-spacerun:yes">&#160;</span> (542)</span></b></span> </p> </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;</span>$<span style= "mso-spacerun:yes">&#160;</span> 488</span></b></span> </p> </td> <td width="17" valign="top" style= "width:12.7pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="67" valign="top" style= "width:50.3pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= 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"font-size:8.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;</span> Customer relationships</span></b></span> </p> </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;</span> 1,260</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;&#160;</span> (231)</span></b></span> </p> </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;</span> 1,029</span></b></span> </p> </td> <td width="17" valign="top" style= "width:12.7pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="67" valign="top" style= "width:50.3pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;</span> 1,250</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;&#160;</span> (175)</span></b></span> </p> </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= 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<td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;&#160;&#160;</span> (50)</span></b></span> </p> </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;&#160;&#160;</span> 114</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:7"> <td width="187" valign="top" style= "width:1.95in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;</span> Other</span></b></span> </p> </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt"> <p 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5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="67" valign="top" style= "width:50.3pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;</span><u><span style= "mso-spacerun:yes">&#160;&#160;</span> 501</u></span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;</span> <u><span style= "mso-spacerun:yes">&#160;</span>(362</u>)</span></b></span> </p> </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= 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New"><span style= "mso-spacerun:yes">&#160;</span><u><span style= "mso-spacerun:yes">&#160;</span>2,945</u></span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;</span> <u>(1,081</u>)</span></b></span> </p> </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;</span> <u><span style= "mso-spacerun:yes">&#160;</span>1,864</u></span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:9"> <td width="187" valign="top" style= "width:1.95in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">Trademarks with indefinite</span></b></span> </p> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;</span> lives</span></b></span> </p> </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;</span><u><span style= "mso-spacerun:yes">&#160;&#160;</span> 396</u></span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;</span> <u><span style= "mso-spacerun:yes">&#160;&#160;&#160;&#160;</span>-</u></span></b></span> </p> </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;</span><u><span style= "mso-spacerun:yes">&#160;&#160;</span> 396</u></span></b></span> </p> </td> <td width="17" valign="top" style= "width:12.7pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="67" valign="top" style= "width:50.3pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;</span><u><span style= "mso-spacerun:yes">&#160;&#160;</span> 403</u></span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;</span> <u><span style= "mso-spacerun:yes">&#160;&#160;&#160;&#160;</span>-</u></span></b></span> </p> </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;</span> <u><span style= "mso-spacerun:yes">&#160;&#160;&#160;</span>403</u></span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:10;mso-yfti-lastrow:yes"> <td width="187" valign="top" style= "width:1.95in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: 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class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="67" valign="top" style= "width:50.3pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;</span><u style= "text-underline: double">$3,348</u></span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;</span><u style= "text-underline: double">$(1,081</u>)</span></b></span> </p> </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier 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"width:1.25in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">June 30,</span></b></span> </p> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:10.0pt; font-family:Courier New">&#160;&#160;&#160;&#160;2009&#160;&#160;&#160;&#160;</span></u></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">December 31,</span></b></span> </p> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:10.0pt; font-family:Courier New">&#160;&#160;&#160;&#160;2008&#160;&#160;&#160;&#160;</span></u></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:1"> <td width="67" valign="top" style= "width:.7in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="324" valign="top" style= "width:243.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:2"> <td width="67" valign="top" style= "width:.7in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="324" valign="top" style= "width:243.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Raw materials</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span> <span style= "mso-spacerun:yes">&#160;</span>$1,383</span></b></span> </p> </td> <td width="120" valign="top" style= 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It has been our practice to establish actual quarterly closing dates using a predetermined &#8220;fiscal&#8221; calendar, which requires our businesses to close their books on a Saturday in order to minimize the potentially disruptive effects of quarterly closing on our business processes. The effects of this practice are generally not significant to reported results for any quarter and only exist within a reporting year. In the event that differences in actual closing dates are material to year-over-year comparisons of quarterly or year-to-date results, we provide appropriate disclosures. 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<td width="83" valign="bottom" style= "width:62.45pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;&#160;&#160;&#160;</span> 3</span></b></span> </p> </td> <td width="18" valign="top" style= "width:13.5pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="76" valign="bottom" style= "width:56.75pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;&#160;&#160;</span> 27</span></b></span> </p> </td> <td width="92" valign="bottom" style= "width:69.25pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= 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"mso-spacerun:yes">&#160;&#160;</span> <u><span style= "mso-spacerun:yes">&#160;&#160;</span>61</u></span></b></span> </p> </td> <td width="83" valign="bottom" style= "width:62.45pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;</span> <u><span style= "mso-spacerun:yes">&#160;&#160;&#160;</span>1</u></span></b></span> </p> </td> <td width="18" valign="top" style= "width:13.5pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="76" valign="bottom" style= "width:56.75pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;</span> <u><span style= "mso-spacerun:yes">&#160;&#160;</span>59</u></span></b></span> </p> </td> <td width="92" valign="bottom" style= "width:69.25pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;</span> <u><span style= "mso-spacerun:yes">&#160;&#160;&#160;</span>5</u></span></b></span> </p> </td> </tr> <tr style= "mso-yfti-irow:8;mso-yfti-lastrow:yes;height:17.55pt"> <td width="41" valign="top" style= "width:30.6pt;padding:0in 5.4pt 0in 5.4pt; height:17.55pt"> <p class="MsoNormal" style="margin-left:-5.4pt"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="240" valign="top" style= "width:180.1pt;padding:0in 5.4pt 0in 5.4pt; height:17.55pt"> <p class="MsoNormal" style="margin-left:-5.4pt"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="81" style= "width:60.75pt;padding:0in 5.4pt 0in 5.4pt;height:17.55pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;</span> <u style= "text-underline: double">$<span style= "mso-spacerun:yes">&#160;</span> 51</u></span></b></span> </p> </td> <td width="83" style= "width:62.45pt;padding:0in 5.4pt 0in 5.4pt;height:17.55pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;</span> <u style= "text-underline: double">$(43</u>)</span></b></span> </p> </td> <td width="18" valign="top" style= "width:13.5pt;padding:0in 5.4pt 0in 5.4pt; height:17.55pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="76" style= "width:56.75pt;padding:0in 5.4pt 0in 5.4pt;height:17.55pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;</span> <u style= "text-underline: double">$<span style= "mso-spacerun:yes">&#160;&#160;</span> 53</u></span></b></span> </p> </td> <td width="92" style= "width:69.25pt;padding:0in 5.4pt 0in 5.4pt;height:17.55pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;</span> <u style= "text-underline: double">$(69</u>)</span></b></span> </p> </td> </tr> </table> <p class="MsoNormal" style="text-indent:.5in"> <span><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> <p class="MsoNormal" style="text-indent:.5in"> <span><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p><span><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New;mso-fareast-font-family:Times New Roman;mso-ansi-language:EN-US; mso-fareast-language:EN-US;mso-bidi-language:AR-SA">Other (net) includes an other-than-temporary impairment charge</span></b> <b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family:Courier New;mso-fareast-font-family:Times New Roman; mso-ansi-language:EN-US;mso-fareast-language:EN-US;mso-bidi-language:AR-SA"> of</span></b> <b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family:Courier New;mso-fareast-font-family:Times New Roman; mso-ansi-language:EN-US;mso-fareast-language:EN-US;mso-bidi-language:AR-SA"> $62 million recognized in the second quarter of 2009. 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Pension and Other Postretirement Benefits</span></b></a> </p> <p class="MsoNormal"> <span><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> <p class="MsoNormal"> <span><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style= "mso-tab-count:1">&#160;&#160;&#160;&#160;&#160;</span> Net periodic pension and other postretirement benefits costs for our significant defined benefit plans include the following components:</span></b></span> </p> <p class="MsoNormal"> <span><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" width="679" style= "border-collapse:collapse;mso-table-layout-alt:fixed;mso-yfti-tbllook: 480;mso-padding-alt:0in 5.4pt 0in 5.4pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="319" valign="top" style= "width:239.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="180" colspan="3" valign="top" style= "width:135.0pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Three Months Ended</span></b></span> </p> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160; June 30,&#160;&#160;&#160;</span></b></span> </p> </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="164" colspan="2" valign="top" style= "width:123.2pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Six Months Ended</span></b></span> </p> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160; June 30,&#160;&#160;&#160;</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:1"> <td width="319" valign="top" style= "width:239.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span></span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;<u>2009</u>&#160;</span></b></span> </p> </td> <td width="96" colspan="2" valign="top" style= "width:1.0in;border:none;border-top: solid windowtext 1.0pt;mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span> <u>2008</u>&#160;</span></b></span> </p> </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="77" valign="top" style= "width:57.4pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;<u>2009</u>&#160;</span></b></span> </p> </td> <td width="88" valign="top" style= "width:65.8pt;border:none;border-top:solid windowtext 1.0pt; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span> <u>2008</u>&#160;</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:2"> <td width="319" valign="top" style= "width:239.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:10.0pt; font-family:Courier New">Pension Benefits</span></u></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="96" colspan="2" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="77" valign="top" style= "width:57.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="88" valign="top" style= "width:65.8pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:3"> <td width="319" valign="top" style= "width:239.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Service cost</span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span>$<span style="mso-spacerun:yes">&#160;</span> 54</span></b></span> </p> </td> <td width="96" colspan="2" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span>$<span style="mso-spacerun:yes">&#160;</span> 67</span></b></span> </p> </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="77" valign="top" style= "width:57.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span>$ 111</span></b></span> </p> </td> <td width="88" valign="top" style= 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style="mso-yfti-irow:5"> <td width="319" valign="top" style= "width:239.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Expected return on plan assets</span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span> (333)</span></b></span> </p> </td> <td width="96" colspan="2" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span> (364)</span></b></span> </p> </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;</span></span></b></span> </p> </td> <td width="77" valign="top" style= "width:57.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span> (654)</span></b></span> </p> </td> <td width="88" valign="top" style= "width:65.8pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span> (727)</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:6"> <td width="319" valign="top" style= "width:239.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Amortization of prior service cost</span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;</span> 5</span></b></span> </p> </td> <td width="96" colspan="2" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;</span> 7</span></b></span> </p> </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;</span></span></b></span> </p> </td> <td width="77" valign="top" style= "width:57.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;</span> 12</span></b></span> </p> </td> <td width="88" valign="top" style= "width:65.8pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;</span> 14</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:7"> <td width="319" valign="top" style= "width:239.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Recognition of actuarial losses</span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;</span> 45</span></b></span> </p> </td> <td width="96" colspan="2" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;</span> 12</span></b></span> </p> </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;</span></span></b></span> </p> </td> <td width="77" valign="top" style= "width:57.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;</span> 81</span></b></span> </p> </td> <td width="88" valign="top" style= "width:65.8pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;</span> 24</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:8"> <td width="319" valign="top" style= "width:239.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Settlements and curtailments</span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span><u><span style="mso-spacerun:yes">&#160;&#160;&#160;</span> -</u></span></b></span> </p> </td> <td width="96" colspan="2" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span><u><span style="mso-spacerun:yes">&#160;&#160;&#160;</span> -</u></span></b></span> </p> </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="77" valign="top" style= "width:57.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span><u><span style="mso-spacerun:yes">&#160;&#160;&#160;</span> -</u></span></b></span> </p> </td> <td width="88" valign="top" style= "width:65.8pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span><u><span style="mso-spacerun:yes">&#160;&#160;&#160;</span> 2</u></span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:9"> <td width="319" valign="top" style= "width:239.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span><u style="text-underline: double">$<span style= "mso-spacerun:yes">&#160;</span> 21</u></span></b></span> </p> </td> <td width="96" colspan="2" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span><u style="text-underline: double">$ (16)</u></span></b></span> </p> </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="77" valign="top" style= "width:57.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span><u style="text-underline: double">$<span style= "mso-spacerun:yes">&#160;</span> 42</u></span></b></span> </p> </td> <td width="88" valign="top" style= "width:65.8pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span><u style="text-underline: double">$ (29)</u></span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:10"> <td width="319" valign="top" style= "width:239.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="96" colspan="2" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="77" valign="top" style= "width:57.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="88" valign="top" style= "width:65.8pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:11"> <td width="319" valign="top" style= "width:239.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="96" colspan="2" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="77" valign="top" style= "width:57.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="88" valign="top" style= "width:65.8pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:12"> <td width="319" valign="top" style= "width:239.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="180" colspan="3" valign="top" style= "width:135.0pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Three Months Ended</span></b></span> </p> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160; June 30,&#160;&#160;&#160;</span></b></span> </p> </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="164" colspan="2" valign="top" style= "width:123.2pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Six Months Ended</span></b></span> </p> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160; June 30,&#160;&#160;&#160;</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:13"> <td width="319" valign="top" style= "width:239.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span></span></b></span> </p> </td> <td width="96" colspan="2" valign="top" style= "width:1.0in;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:10.0pt; font-family:Courier New">2009</span></u></b></span><span><b style="mso-bidi-font-weight:normal"><span style="font-size:10.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;border:none;border-top:solid windowtext 1.0pt; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span> <u>2008</u>&#160;</span></b></span> </p> </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="77" valign="top" style= "width:57.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:10.0pt; font-family:Courier New">2009</span></u></b></span><span><b style="mso-bidi-font-weight:normal"><span style="font-size:10.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="88" valign="top" style= "width:65.8pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span> <u>2008</u>&#160;</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:14"> <td width="319" valign="top" style= "width:239.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:10.0pt; font-family:Courier New">Other Postretirement Benefits</span></u></b></span> </p> </td> <td width="96" colspan="2" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="77" valign="top" style= "width:57.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="88" valign="top" style= "width:65.8pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:15"> <td width="319" valign="top" style= "width:239.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Service cost</span></b></span> </p> </td> <td width="96" colspan="2" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span>$<span style="mso-spacerun:yes">&#160;&#160;</span> -</span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">$<span style="mso-spacerun:yes">&#160;&#160;</span> 4</span></b></span> </p> </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="77" valign="top" style= "width:57.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span>$<span style="mso-spacerun:yes">&#160;&#160;</span> 3</span></b></span> </p> </td> <td width="88" valign="top" style= "width:65.8pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">$<span style="mso-spacerun:yes">&#160;&#160;</span> 7</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:16"> <td width="319" valign="top" style= "width:239.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Interest cost</span></b></span> </p> </td> <td width="96" colspan="2" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= 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height:11.25pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="68" nowrap="nowrap" valign="bottom" style= "width:51.2pt;border-top:solid windowtext 1.0pt; border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none; mso-border-top-alt:solid windowtext .5pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:11.25pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">2008</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:3;height:11.25pt"> <td width="301" nowrap="nowrap" colspan="2" valign="bottom" style= "width:225.75pt; padding:0in 5.4pt 0in 5.4pt;height:11.25pt"> <p class="MsoNormal"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">Severance</span></b></span> </p> </td> <td width="72" nowrap="nowrap" valign="bottom" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt; 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height:11.25pt"> <p class="MsoNormal"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="144" nowrap="nowrap" colspan="3" valign="bottom" style= "width:1.5in;padding:0in 5.4pt 0in 5.4pt; height:11.25pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">Six Months Ended</span></b></span> </p> </td> <td width="36" nowrap="nowrap" valign="bottom" style= "width:27.05pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt"> <p class="MsoNormal"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:3;height:11.25pt"> <td width="301" nowrap="nowrap" valign="bottom" style= "width:225.75pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="156" colspan="3" valign="bottom" style= "width:117.0pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:11.25pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">June 30,</span></b></span> </p> </td> <td width="48" nowrap="nowrap" valign="bottom" style= "width:.5in;padding:0in 5.4pt 0in 5.4pt; height:11.25pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="144" colspan="3" valign="bottom" style= "width:1.5in;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:11.25pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">June 30,</span></b></span> </p> </td> <td width="36" nowrap="nowrap" valign="bottom" style= "width:27.05pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:4;height:11.25pt"> <td width="301" nowrap="nowrap" valign="bottom" style= "width:225.75pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="72" nowrap="nowrap" valign="bottom" style= "width:.75in;border:none;border-bottom: solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:11.25pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">2009</span></b></span> </p> </td> <td width="24" nowrap="nowrap" valign="bottom" style= "width:.25in;padding:0in 5.4pt 0in 5.4pt; height:11.25pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="60" nowrap="nowrap" valign="bottom" style= "width:45.0pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:11.25pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New"><span style= "mso-spacerun:yes">&#160;</span>2008</span></b></span> </p> </td> <td width="48" nowrap="nowrap" valign="bottom" style= "width:.5in;padding:0in 5.4pt 0in 5.4pt; height:11.25pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="60" nowrap="nowrap" valign="bottom" style= "width:45.0pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:11.25pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">2009</span></b></span> </p> </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;border:none;border-top: solid windowtext 1.0pt;mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="68" nowrap="nowrap" valign="bottom" style= "width:51.2pt;border-top:solid windowtext 1.0pt; border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none; mso-border-top-alt:solid windowtext .5pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:11.25pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New"><span style= "mso-spacerun:yes">&#160;</span>2008</span></b></span> </p> </td> <td width="36" nowrap="nowrap" valign="bottom" style= "width:27.05pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:5;height:11.25pt"> <td width="301" valign="bottom" style= "width:225.75pt;padding:0in 5.4pt 0in 5.4pt; 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height:11.25pt"> <p class="MsoNormal"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:6;height:11.25pt"> <td width="301" valign="bottom" style= "width:225.75pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt"> <p class="MsoNormal"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">Selling, general and administrative expenses</span></b></span> </p> </td> <td width="72" nowrap="nowrap" valign="bottom" style= "width:.75in;border:none;border-bottom: solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:11.25pt"> <p class="MsoNormal"> <span><b><span style= "font-size:8.0pt;font-family:Courier New"><span style= "mso-spacerun:yes">&#160;&#160;&#160;</span> 30</span></b></span> </p> </td> <td width="24" nowrap="nowrap" valign="bottom" style= "width:.25in;padding:0in 5.4pt 0in 5.4pt; height:11.25pt"> <p class="MsoNormal"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="60" nowrap="nowrap" valign="bottom" style= "width:45.0pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:11.25pt"> <p class="MsoNormal"> <span><b><span style= "font-size:8.0pt;font-family:Courier New"><span style= "mso-spacerun:yes">&#160;&#160;&#160;</span> 15</span></b></span> </p> </td> <td width="48" nowrap="nowrap" valign="bottom" style= "width:.5in;padding:0in 5.4pt 0in 5.4pt; height:11.25pt"> <p class="MsoNormal"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="60" nowrap="nowrap" valign="bottom" style= "width:45.0pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:11.25pt"> <p class="MsoNormal"> <span><b><span style= "font-size:8.0pt;font-family:Courier New"><span style= "mso-spacerun:yes">&#160;&#160;&#160;</span> 47</span></b></span> </p> </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt"> <p class="MsoNormal"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="68" nowrap="nowrap" valign="bottom" style= "width:51.2pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:11.25pt"> <p class="MsoNormal"> <span><b><span style= "font-size:8.0pt;font-family:Courier New"><span style= "mso-spacerun:yes">&#160;&#160;&#160;</span> 41</span></b></span> </p> </td> <td width="36" nowrap="nowrap" valign="bottom" style= "width:27.05pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt"> <p class="MsoNormal"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> </tr> <tr style= "mso-yfti-irow:7;mso-yfti-lastrow:yes;height:13.5pt"> <td width="301" nowrap="nowrap" valign="bottom" style= "width:225.75pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt"> <p class="MsoNormal"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="72" nowrap="nowrap" valign="bottom" style= "width:.75in;border:none;border-bottom: double windowtext 1.5pt;mso-border-top-alt:solid windowtext .5pt;padding: 0in 5.4pt 0in 5.4pt;height:13.5pt"> <p class="MsoNormal"> <span><b><span style= "font-size:8.0pt;font-family:Courier New"><span style= "mso-spacerun:yes">&#160;</span>$ 144</span></b></span> </p> </td> <td width="24" nowrap="nowrap" valign="bottom" style= "width:.25in;padding:0in 5.4pt 0in 5.4pt; 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height:11.25pt"> <p class="MsoNormal"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="72" nowrap="nowrap" valign="bottom" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt; height:11.25pt"> <p class="MsoNormal"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="24" nowrap="nowrap" valign="bottom" style= "width:.25in;padding:0in 5.4pt 0in 5.4pt; height:11.25pt"> <p class="MsoNormal"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="60" nowrap="nowrap" valign="bottom" style= "width:45.0pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt"> <p class="MsoNormal"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="36" nowrap="nowrap" valign="bottom" style= "width:27.0pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt"> <p class="MsoNormal"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="72" nowrap="nowrap" valign="bottom" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt; height:11.25pt"> <p class="MsoNormal"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt"> <p class="MsoNormal"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="68" nowrap="nowrap" valign="bottom" style= "width:51.2pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt"> <p class="MsoNormal"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="36" nowrap="nowrap" valign="bottom" style= "width:27.05pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt"> <p class="MsoNormal"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:2;height:11.25pt"> <td width="301" nowrap="nowrap" valign="bottom" style= "width:225.75pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt"> <p class="MsoNormal"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="156" nowrap="nowrap" colspan="3" valign="bottom" style= "width:117.0pt;padding: 0in 5.4pt 0in 5.4pt;height:11.25pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">Three Months Ended</span></b></span> </p> </td> <td width="36" nowrap="nowrap" valign="bottom" style= "width:27.0pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt"> <p class="MsoNormal"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="156" nowrap="nowrap" colspan="3" valign="bottom" style= "width:117.0pt;padding: 0in 5.4pt 0in 5.4pt;height:11.25pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">Six Months Ended</span></b></span> </p> </td> <td width="36" nowrap="nowrap" valign="bottom" style= "width:27.05pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt"> <p class="MsoNormal"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:3;height:11.25pt"> <td width="301" nowrap="nowrap" valign="bottom" style= "width:225.75pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="156" colspan="3" valign="bottom" style= "width:117.0pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:11.25pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">June 30,</span></b></span> </p> </td> <td width="36" nowrap="nowrap" valign="bottom" style= "width:27.0pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt"> <p class="MsoNormal"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="156" colspan="3" valign="bottom" style= "width:117.0pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:11.25pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">June 30,</span></b></span> </p> </td> <td width="36" nowrap="nowrap" valign="bottom" style= "width:27.05pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:4;height:11.25pt"> <td width="301" nowrap="nowrap" valign="bottom" style= "width:225.75pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="72" nowrap="nowrap" valign="bottom" style= "width:.75in;border:none;border-bottom: solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:11.25pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">2009</span></b></span> </p> </td> <td width="24" nowrap="nowrap" valign="bottom" style= "width:.25in;padding:0in 5.4pt 0in 5.4pt; height:11.25pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="60" nowrap="nowrap" valign="bottom" style= "width:45.0pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:11.25pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">2008</span></b></span> </p> </td> <td width="36" nowrap="nowrap" valign="bottom" style= "width:27.0pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt"> <p class="MsoNormal"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="72" nowrap="nowrap" valign="bottom" style= "width:.75in;border:none;border-bottom: solid windowtext 1.0pt;mso-border-top-alt:solid windowtext .5pt;mso-border-top-alt: solid windowtext .5pt;mso-border-bottom-alt:solid windowtext .5pt;padding: 0in 5.4pt 0in 5.4pt;height:11.25pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">2009</span></b></span> </p> </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;border:none;border-top: solid windowtext 1.0pt;mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="68" nowrap="nowrap" valign="bottom" style= "width:51.2pt;border-top:solid windowtext 1.0pt; 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Also, $18 million of previously established accruals, primarily for severance at our Automation and Control Solutions and Aerospace segments, were returned to income in the second quarter of 2009 due principally to fewer employee separations than originally planned associated with prior severance programs.</span></b></span> </p> <p class="MsoNormal"> <span><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;</span><span style= "mso-spacerun:yes">&#160;</span></span></b></span> </p> <p class="MsoNormal"> <span><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style= "mso-tab-count:1">&#160;&#160;&#160;&#160;&#160;</span> In the second quarter of 2008, we recognized a repositioning charge of $62 million including severance costs of $25 million related to workforce reductions of 607 manufacturing and administrative positions across all of our business segments.<span style= "mso-spacerun:yes">&#160;</span> The repositioning charge included asset impairments of $21 million related to plant closures in our Transportation Systems segment and the shutdown of certain administrative facilities in our Corporate segment.<span style="mso-spacerun:yes">&#160;</span> The repositioning charge also included exit costs of $16 million primarily for environmental remediation and monitoring costs related to the closure and sale of a plant in our Transportation Systems segment.<span style= "mso-spacerun:yes">&#160;&#160;&#160;</span></span></b></span> </p> <p class="MsoNormal"> <span><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> <p class="MsoNormal"> <span><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style= "mso-tab-count:1">&#160;&#160;&#160;&#160;&#160;</span> In the first six months of 2009, we recognized repositioning charges totaling $149 million primarily for severance costs related to workforce reductions of 3,120 manufacturing and administrative positions across all of our segments. The workforce reductions were primarily related to the adverse market conditions currently being experienced by many of our businesses, cost savings actions taken in connection with our ongoing functional transformation initiative, and organizational realignments of portions of our Aerospace and Transportation Systems segments. Also, $39 million of previously established accruals, primarily for severance at our Aerospace, Automation and Control Solutions and Transportation Systems segments, were returned to income in the first six months of 2009 due to fewer employee separations than originally planned associated with prior severance programs and changes in the scope of previously announced repositioning actions.</span></b></span> </p> <p class="MsoNormal"> <span><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> <p class="MsoNormal" style="text-indent:.5in"> <span><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">In the first six months of 2008, we recognized a repositioning charge of $165 million primarily for severance costs related to workforce reductions of 2,683 manufacturing and administrative positions across all of our segments. The more significant actions comprising the repositioning charge included the transitioning of manufacturing work to more cost-effective locations, the closure of plants and certain administrative facilities, outsourcing of non-core components, and our functional transformation initiative.</span></b></span> </p> <p class="MsoNormal"> <span><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> <p class="MsoNormal" style="text-indent:.5in"> <span><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">The following table summarizes the status of our total repositioning reserves:</span></b></span> </p> <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" width="643" style= "width:6.7in;border-collapse:collapse;mso-yfti-tbllook:480;mso-padding-alt: 0in 5.4pt 0in 5.4pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="259" valign="top" style= 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align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:10.0pt; font-family:Courier New">Total</span></u></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:1"> <td width="259" valign="top" style= "width:2.7in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:2"> <td width="259" valign="top" style= "width:2.7in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Balance at December 31, 2008</span></b></span> </p> </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;</span> $365</span></b></span> </p> </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;</span> $ <span style= "mso-spacerun:yes">&#160;</span>-</span></b></span> </p> </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span> $36</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= 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&#160;&#160;&#160;&#160;&#160;</span> <span style= "mso-spacerun:yes">&#160;</span>4</span></b></span> </p> </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;</span> <span style= "mso-spacerun:yes">&#160;</span>3</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;</span> 149</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:4"> <td width="259" valign="top" style= "width:2.7in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">2009 usage</span></b></span> </p> </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;</span> <span style= "mso-spacerun:yes">&#160;</span>(98)</span></b></span> </p> </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;</span> <span style= "mso-spacerun:yes">&#160;</span>(4)</span></b></span> </p> </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;</span> (2)</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;</span> (104)</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:5"> <td width="259" valign="top" style= "width:2.7in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Adjustments</span></b></span> </p> </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;</span> <u>&#160;(38)</u></span></b></span> </p> </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;</span> &#160;<u>&#160; -</u>&#160;</span></b></span> </p> </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span> <u>&#160;(1)</u></span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;</span> <u><span style= "mso-spacerun:yes">&#160;</span>(39)</u></span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:6"> <td width="259" valign="top" style= "width:2.7in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= 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class="MsoBodyText2" style="text-indent:.5in"> <span><span style= "mso-bidi-font-family:Courier New">&#160;</span></span> </p> <p class="MsoBodyText2" style="text-indent:.5in"> <span><span style="mso-bidi-font-family:Courier New">Certain repositioning projects in our Aerospace, Automation and Control Solutions and Transportation Systems segments included exit or disposal activities, the costs related to which, will be recognized in future periods when the actual liability is incurred. 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"mso-bidi-font-weight:normal"><u><span style= "font-size:10.0pt; font-family:Courier New"><span style="text-decoration:none"> &#160;</span></span></u></b></span> </p> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:10.0pt; font-family:Courier New">Total</span></u></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:1"> <td width="283" valign="top" style= "width:2.95in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:2"> <td width="283" valign="top" style= "width:2.95in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Expected exit and disposal costs</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;</span> $113</span></b></span> </p> </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;</span> $27</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span> <span style= "mso-spacerun:yes">&#160;&#160;</span>$11</span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;</span> $151</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:3"> <td width="283" valign="top" style= "width:2.95in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Costs incurred year ended</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;</span></span></b></span> </p> </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;&#160;</span></span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span></span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;</span></span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:4"> <td width="283" valign="top" style= "width:2.95in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;</span> December 31, 2008</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;</span> (12)</span></b></span> </p> </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;&#160;&#160;</span> -</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;</span> <span style= "mso-spacerun:yes">&#160;&#160;</span>(1)</span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;</span> (13)</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:5"> <td width="283" valign="top" style= "width:2.95in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Costs incurred six months</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;&#160;&#160;</span></span></b></span> </p> </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;&#160;&#160;</span></span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;</span></span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;&#160;</span></span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:6"> <td width="283" valign="top" style= "width:2.95in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;</span> ended June 30, 2009</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;</span> <u><span style= "mso-spacerun:yes">&#160;</span>(17)</u></span></b></span> </p> </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;</span> &#160;<u>&#160;(1)</u>&#160;</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span> <span style= "mso-spacerun:yes">&#160;&#160;</span><u>&#160;(1)</u></span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;</span> <u><span style= "mso-spacerun:yes">&#160;</span>(19)</u></span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:7"> <td width="283" valign="top" style= "width:2.95in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Remaining exit and disposal costs</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:8;mso-yfti-lastrow:yes"> <td width="283" valign="top" style= "width:2.95in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;</span> at June 30, 2009</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span><span style= "mso-spacerun:yes">&#160;</span><u style="text-underline:double">$ 84</u></span></b></span> </p> </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;</span> <u style= "text-underline:double">$26</u></span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span> <span style= "mso-spacerun:yes">&#160;&#160;</span><u style= "text-underline:double">$ 9</u></span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;</span> <u style= "text-underline: double">$119</u></span></b></span> </p> </td> </tr> </table> <p class="MsoBodyText2" style="text-indent:.5in"> <span><span style= "mso-bidi-font-family:Courier New">&#160;</span></span> </p> <p class="MsoBodyText2" style="text-indent:.5in"> <span><span style="mso-bidi-font-family:Courier New">In the second quarter of 2009, we recognized a charge of $36 million for environmental liabilities deemed probable and reasonably estimable in the quarter.<span style= "mso-spacerun:yes">&#160;</span> We also recognized a charge of $37 million primarily representing an update to our estimated liability for the resolution of Bendix related asbestos claims as of June 30, 2009, net of probable insurance recoveries.<span style="mso-spacerun:yes">&#160;</span> Environmental and Asbestos matters are discussed in detail in Note 15, Commitments and Contingencies.</span></span> </p> <p class="MsoBodyText2" style="text-indent:.5in"> <span><span style= "mso-bidi-font-family:Courier New">&#160;</span></span> </p> <p class="MsoBodyText2" style="text-indent:.5in"> <span><span style="mso-bidi-font-family:Courier New">In the second quarter of 2008, we recognized a charge of $51 million for environmental liabilities deemed probable and reasonably estimable in the quarter.<span style= "mso-spacerun:yes">&#160;</span> We also recognized a charge of $34 million representing an update to our estimated liability for the resolution of Bendix related asbestos claims as of June 30, 2008, net of probable insurance recoveries.<span style= "mso-spacerun:yes">&#160;&#160;</span></span></span> </p> <p class="MsoBodyText2" style="text-indent:.5in"> <span><span style= "mso-bidi-font-family:Courier New">&#160;</span></span> </p> <p class="MsoBodyText2" style="text-indent:.5in"> <span><span style="mso-bidi-font-family:Courier New">In the first six months of 2009, we recognized a charge of $67 million for environmental liabilities deemed probable and reasonably estimable in the period. 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We believe that, as a general matter, our policies, practices and procedures are properly designed to prevent unreasonable risk of environmental damage and personal injury and that our handling, manufacture, use and disposal of hazardous substances are in accordance with environmental and safety laws and regulations. However, mainly because of past operations and operations of predecessor companies, we, like other companies engaged in similar businesses, have incurred remedial response and voluntary cleanup costs for site contamination and are a party to lawsuits and claims associated with environmental and safety matters, including past production of products containing hazardous substances. Additional lawsuits, claims and costs involving environmental matters are likely to continue to arise in the future.</span></b></span> </p> <p class="MsoNormal" style= "margin-top:8.0pt;text-align:justify;text-indent:.5in"> <span><b style="mso-bidi-font-weight: normal"><span style= "font-size:10.0pt;font-family:Courier New">With respect to environmental matters involving site contamination, we continually conduct studies, individually or jointly with other potentially responsible parties, to determine the feasibility of various remedial techniques. It is our policy to record appropriate liabilities for environmental matters when remedial efforts or damage claim payments are probable and the costs can be reasonably estimated. Such liabilities are based on our best estimate of the undiscounted future costs required to complete the remedial work. The recorded liabilities are adjusted periodically as remediation efforts progress or as additional technical, regulatory or legal information becomes available. Given the uncertainties regarding the status of laws, regulations, enforcement policies, the impact of other potentially responsible parties, technology and information related to individual sites, we do not believe it is possible to develop an estimate of the range of reasonably possible environmental loss in excess of our recorded liabilities. We expect to fund expenditures for these matters from operating cash flow. The timing of cash expenditures depends on a number of factors, including the timing of remedial investigations and feasibility studies, the timing of litigation and settlements of remediation liability, personal injury and property damage claims, regulatory approval of cleanup projects, remedial techniques to be utilized and agreements with other parties. 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could be material to our consolidated results of operations or operating cash flows in the periods recognized or paid. However, considering our past experience and existing reserves, we do not expect that these environmental matters will have a material adverse effect on our consolidated financial position.</span></b></span> </p> <p class="MsoNormal" style= "margin-top:8.0pt;text-align:justify;text-indent:.5in"> <span><b><i><span style= "font-size:10.0pt;font-family:Courier New">New Jersey Chrome Sites</span></i></b></span> <span><b style= "mso-bidi-font-weight: normal"><span style= "font-size:10.0pt;font-family:Courier New">&#8212; Provisions have been made in our financial statements for the estimated costs of the court-ordered excavation and transport for offsite disposal of approximately one million tons of chromium residue present at a predecessor Honeywell site located in Jersey City, New Jersey, known as Study Area 7. These expenditures have been and are expected to continue to be incurred evenly through the remedy&#8217;s expected completion date in 2010. We do not expect implementation of this remedy to have a material adverse effect on our future consolidated results of operations, operating cash flows or financial position. Provision also has been made in our financial statements for the estimated costs of implementing related groundwater remedial plans approved by the Court, as well as sediment remedial plans, which also have been approved by the Court and are presently under review by the U.S. Environmental Protection Agency.</span></b></span> </p> <p class="MsoNormal" style= "margin-top:8.0pt;text-align:justify;text-indent:.5in"> <span><b style="mso-bidi-font-weight: normal"><span style= "font-size:10.0pt;font-family:Courier New">The above-referenced site is the most significant of the twenty-one sites located in Hudson County, New Jersey that are the subject of an Administrative Consent Order (ACO) entered into with the New Jersey Department of Environmental Protection (NJDEP) in 1993 (the &#8220;Honeywell ACO Sites&#8221;). Remedial investigations and activities consistent with the ACO have also been conducted and are underway at the other Honeywell ACO Sites. We have recorded reserves for the Honeywell ACO Sites where appropriate under the accounting policy described above.</span></b></span> </p> <p class="MsoNormal" style= "margin-top:8.0pt;text-align:justify;text-indent:.5in"> <span><b style="mso-bidi-font-weight: normal"><span style= "font-size:10.0pt;font-family:Courier New">On May 3, 2005, NJDEP filed a lawsuit in New Jersey Superior Court against Honeywell and two other companies seeking declaratory and injunctive relief, unspecified damages, and the reimbursement of unspecified total costs relating to sites in New Jersey allegedly contaminated with chrome ore processing residue. The claims against Honeywell relate to the activities of a predecessor company which ceased its New Jersey manufacturing operations in the mid-1950&#8217;s. Honeywell and the two other companies have agreed to settle this litigation with NJDEP, subject to Court approval. Under the settlement, Honeywell would pay $5 million of NJDEP&#8217;s past costs, as well as accept sole responsibility to remediate 24 of the 53 &#8220;Publicly Funded Sites&#8221; (i.e., those sites for which none of the three companies had previously accepted responsibility). Honeywell would also bear 50% of the costs at another 10 Publicly Funded Sites. We have recorded reserves for the Publicly Funded Sites where appropriate under the accounting policy described above.</span></b></span> </p> <p class="MsoNormal" style= "margin-top:8.0pt;text-align:justify;text-indent:.5in"> <span><b style="mso-bidi-font-weight: normal"><span style= "font-size:10.0pt;font-family:Courier New">Lawsuits were previously filed in federal court against Honeywell and other landowners by Jersey City and two of its municipal utility authorities, and separately by a citizens group seeking, the cleanup of chrome residue at several of the Honeywell ACO Sites under the federal Resource Conservation and Recovery Act (RCRA). Honeywell, Jersey City, the municipal utility authorities and the citizens group have agreed to settle claims relating to a group of properties known as Study Area 6 North, which settlement has been approved by the Court. These sites and other related sites have been classified by Jersey City as an area in need of redevelopment and Jersey City has approved a redevelopment plan and agreement regarding these sites. As part of this settlement, Honeywell has also agreed to release claims it may have had against Jersey City and its municipal utility authorities for contamination of river sediments and for the remediation of chrome residue at the Publicly Funded Sites that are sewer lines. Honeywell and the plaintiffs have reached a settlement for one group of properties known as Study Area 6 South, and that settlement has been approved by the Court. The remedial actions regarding the settlements discussed above, which have also been approved by NJDEP, are consistent with our recorded reserves. Settlement negotiations are ongoing for the remaining sites (portions of what is known as Study Area 5) in the litigation.</span></b></span> </p> <p class="MsoNormal" style= "margin-top:8.0pt;text-align:justify;text-indent:.5in"> <span><b><i><span style= "font-size:10.0pt;font-family:Courier New">Dundalk Marine Terminal, Baltimore</span></i></b></span> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#8212; Chrome residue from legacy chrome plant operations in Baltimore was deposited as fill at the Dundalk Marine Terminal (&#8220;DMT&#8221;), which is owned and operated by the Maryland Port Administration (&#8220;MPA&#8221;). Honeywell and the MPA have been sharing costs to investigate and mitigate related environmental issues, and have entered into a cost sharing agreement under which Honeywell will bear 77 percent of the costs of developing and implementing permanent remedies for the DMT facility. The investigative phase is ongoing, after which the appropriate remedies will be identified and chosen. We have negotiated a Consent Decree with the MPA and Maryland Department of the Environment (&#8220;MDE&#8221;) with respect to the investigation and remediation of the DMT facility. The Consent Decree is being challenged in federal court by BUILD, a Baltimore community group, together with a local church and two individuals (collectively &#8220;BUILD&#8221;). In October 2007, the Court dismissed with prejudice BUILD&#8217;s state law claims and dismissed without prejudice BUILD&#8217;s RCRA claims regarding neighborhoods near the DMT facility. In August 2008, the Court held a hearing on the Company&#8217;s motion to dismiss BUILD&#8217;s remaining claims on the grounds that MDE is diligently prosecuting the investigation and remediation of the DMT. We are awaiting the Court&#8217;s decision. We do not believe that this matter will have a material adverse impact on our consolidated financial position or operating cash flows. Given the scope and complexity of this project, it is possible that the cost of remediation, when determinable, could have a material adverse impact on our results of operations in the periods recognized.</span></b></span> </p> <p class="MsoNormal" style= "margin-top:8.0pt;text-align:justify;text-indent:.5in"> <span><b><i><span style= "font-size:10.0pt;font-family:Courier New">Onondaga Lake, Syracuse, NY</span></i></b></span> <span><b style= "mso-bidi-font-weight: normal"><span style= "font-size:10.0pt;font-family:Courier New">&#8212; A predecessor company to Honeywell operated a chemical plant which is alleged to have contributed mercury and other contaminants to the Lake. In July 2005, the New York State Department of Environmental Conservation (the DEC) issued its Record of Decision (ROD) with respect to remediation of industrial contamination in the Lake. In January 2007, a Consent Decree was approved by the United States District Court for the Northern District of New York for the implementation of the combined dredging/capping remedy set forth in the ROD. We have accrued for our estimated cost of implementing the remedy set forth in the ROD based on current available information and analysis performed by our engineering consultants.</span></b></span> </p> <p class="MsoNormal" style= "margin-top:8.0pt;text-align:justify;text-indent:.5in"> <span><b style="mso-bidi-font-weight: normal"><span style= "font-size:10.0pt;font-family:Courier New">In December 2006, the United States Fish and Wildlife Service published notice of its intent to pursue natural resource damages related to the site. It is not possible to predict the outcome or timing of its assessments, which are typically lengthy processes lasting several years, or the amounts of or responsibility for these damages.</span></b></span> </p> <p class="MsoNormal" style= "margin-top:8.0pt;text-align:justify;text-indent:.5in"> <span><b style="mso-bidi-font-weight: normal"><span style= "font-size:10.0pt;font-family:Courier New">Honeywell is also conducting remedial investigations and activities at other sites in Syracuse, New York. We have recorded reserves for these investigations and activities where appropriate under the accounting policy described above.</span></b></span> </p> <p class="MsoNormal" style= "margin-top:8.0pt;text-align:justify"> <span><b><span style= "font-size:10.0pt;font-family:Courier New">Asbestos Matters</span></b></span> </p> <p class="MsoNormal" style= "margin-top:8.0pt;text-align:justify;text-indent:.5in"> <span><b style="mso-bidi-font-weight: normal"><span style= "font-size:10.0pt;font-family:Courier New">Like many other industrial companies, Honeywell is a defendant in personal injury actions related to asbestos. We did not mine or produce asbestos, nor did we make or sell insulation products or other construction materials that have been identified as the primary cause of asbestos related disease in the vast majority of claimants. Products containing asbestos previously manufactured by Honeywell or by previously owned subsidiaries primarily fall into two general categories: refractory products and friction products.</span></b></span> </p> <p class="MsoNormal" style= "margin-top:8.0pt;text-align:justify;text-indent:.5in"> <span><b><i><span style= "font-size:10.0pt;font-family:Courier New">Refractory Products</span></i></b></span> <span><b style= "mso-bidi-font-weight: normal"><span style= "font-size:10.0pt;font-family:Courier New">&#8212; Honeywell owned North American Refractories Company (NARCO) from 1979 to 1986. NARCO produced refractory products (high temperature bricks and cement) that were sold largely to the steel industry in the East and Midwest. Less than 2 percent of NARCO&#8217;s products contained asbestos.</span></b></span> </p> <p class="MsoNormal" style= "margin-top:8.0pt;text-align:justify;text-indent:.5in"> <span><b style="mso-bidi-font-weight: normal"><span style= "font-size:10.0pt;font-family:Courier New">When we sold the NARCO business in 1986, we agreed to indemnify NARCO with respect to personal injury claims for products that had been discontinued prior to the sale (as defined in the sale agreement). NARCO retained all liability for all other claims. On January 4, 2002, NARCO filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code.</span></b></span> </p> <p class="MsoNormal" style= "margin-top:8.0pt;text-align:justify;text-indent:.5in"> <span><b style="mso-bidi-font-weight: normal"><span style= "font-size:10.0pt;font-family:Courier New">As a result of the NARCO bankruptcy filing, all of the claims pending against NARCO are automatically stayed pending the reorganization of NARCO. In addition, the bankruptcy court enjoined both the filing and prosecution of NARCO-related asbestos claims against Honeywell. The stay has remained in effect continuously since January 4, 2002. In connection with NARCO&#8217;s bankruptcy filing, we paid NARCO&#8217;s parent company $40 million and agreed to provide NARCO with up to $20 million in financing. We also agreed to pay $20 million to NARCO&#8217;s parent company upon the filing of a plan of reorganization for NARCO acceptable to Honeywell (which amount was paid in December 2005 following the filing of NARCO&#8217;s Third Amended Plan of Reorganization), and to pay NARCO&#8217;s parent company $40 million, and to forgive any outstanding NARCO indebtedness to Honeywell, upon the effective date of the plan of reorganization.</span></b></span> </p> <p class="MsoNormal" style= "margin-top:8.0pt;text-align:justify;text-indent:.5in"> <span><b style="mso-bidi-font-weight: normal"><span style= "font-size:10.0pt;font-family:Courier New">We believe that, as part of the NARCO plan of reorganization, a trust will be established for the benefit of all asbestos claimants, current and future, pursuant to Trust Distribution Procedures negotiated with the NARCO Asbestos Claimants Committee and the Court-appointed legal representative for future asbestos claimants. If the trust is put in place and approved by the Court as fair and equitable, Honeywell as well as NARCO will be entitled to a permanent channeling injunction barring all present and future individual actions in state or federal courts and requiring all asbestos related claims based on exposure to NARCO products to be made against the federally-supervised trust. Honeywell has reached agreement with the representative for future NARCO claimants and the Asbestos Claimants Committee to cap its annual contributions to the trust with respect to future claims at a level that would not have a material impact on Honeywell&#8217;s operating cash flows.</span></b></span> </p> <p class="MsoNormal" style= "margin-top:8.0pt;text-align:justify;text-indent:.5in"> <span><b style="mso-bidi-font-weight: normal"><span style= "font-size:10.0pt;font-family:Courier New">In November 2007, the Bankruptcy Court entered an amended order confirming the NARCO Plan without modification and approving the 524(g) trust and channeling injunction in favor of NARCO and Honeywell. In December 2007, certain insurers filed an appeal of the Bankruptcy Court Order in the United States District Court for the Western District of Pennsylvania. The District Court affirmed the Bankruptcy Court Order in July 2008. In August 2008, insurers filed a notice of appeal to the Third Circuit Court of Appeals. The appeal is fully briefed, oral argument took place on May 21, 2009, and the matter has been submitted for decision. No assurances can be given as to the time frame or outcome of this appeal. We expect that the stay enjoining litigation against NARCO and Honeywell will remain in effect during the pendency of these proceedings.</span></b></span> </p> <p class="MsoNormal" style= "margin-top:8.0pt;text-align:justify;text-indent:.5in"> <span><b style="mso-bidi-font-weight: normal"><span style= "font-size:10.0pt;font-family:Courier New">Our consolidated financial statements reflect an estimated liability for settlement of pending and future NARCO-related asbestos claims as of June 30, 2009 and December 31, 2008 of $1.1 billion. The estimated liability for pending claims is based on terms and conditions, including evidentiary requirements, in definitive agreements with approximately 260,000 current claimants, and an estimate of the unsettled claims pending as of the time NARCO filed for bankruptcy protection. Substantially all settlement payments with respect to current claims have been made. Approximately $100 million of payments due pursuant to these settlements is due only upon establishment of the NARCO trust.</span></b></span> </p> <p class="MsoNormal" style= "margin-top:8.0pt;text-align:justify;text-indent:.5in"> <span><b style="mso-bidi-font-weight: normal"><span style= "font-size:10.0pt;font-family:Courier New">The estimated liability for future claims represents the estimated value of future asbestos related bodily injury claims expected to be asserted against NARCO through 2018 and the aforementioned obligations to NARCO&#8217;s parent. In light of the uncertainties inherent in making long-term projections we do not believe that we have a reasonable basis for estimating asbestos claims beyond 2018 under SFAS No. 5, &#8220;Accounting for Contingencies&#8221;. The estimate is based upon the disease criteria and payment values contained in the NARCO Trust Distribution Procedures negotiated with the NARCO Asbestos Claimants Committee and the NARCO future claimants&#8217; representative. Honeywell projected the probable number and value, including trust claim handling costs, of asbestos related future liabilities based upon experience of asbestos claims filing rates in the tort system and in certain operating asbestos trusts, and the claims experience in those forums. The valuation methodology also includes an analysis of the population likely to have been exposed to asbestos containing products, epidemiological studies to estimate the number of people likely to develop asbestos related diseases, NARCO claims filing history, the pending inventory of NARCO asbestos related claims and payment rates expected to be established by the NARCO trust. This methodology used to estimate the liability for future claims has been commonly accepted by numerous courts.</span></b></span> </p> <p class="MsoNormal" style= "margin-top:8.0pt;text-align:justify;text-indent:.5in"> <span><b style="mso-bidi-font-weight: normal"><span style= "font-size:10.0pt;font-family:Courier New">As of June 30, 2009 and December 31, 2008, our consolidated financial statements reflect an insurance receivable corresponding to the liability for settlement of pending and future NARCO-related asbestos claims of $873 and $877 million, respectively. This coverage reimburses Honeywell for portions of the costs incurred to settle NARCO related claims and court judgments as well as defense costs and is provided by a large number of insurance policies written by dozens of insurance companies in both the domestic insurance market and the London excess market. At June 30, 2009, a significant portion of this coverage is with insurance companies with whom we have agreements to pay full policy limits based on corresponding Honeywell claims costs. We conduct analyses to determine the amount of insurance that we estimate is probable of recovery in relation to payment of current and estimated future claims. While the substantial majority of our insurance carriers are solvent, some of our individual carriers are insolvent, which has been considered in our analysis of probable recoveries. We made judgments concerning insurance coverage that we believe are reasonable and consistent with our historical dealings with our insurers, our knowledge of any pertinent solvency issues surrounding insurers and various judicial determinations relevant to our insurance programs.</span></b></span> </p> <p class="MsoNormal" style= "margin-top:8.0pt;text-align:justify;text-indent:.5in"> <span><b style="mso-bidi-font-weight: normal"><span style= "font-size:10.0pt;font-family:Courier New">In the second quarter of 2006, Travelers Casualty and Insurance Company (&#8220;Travelers&#8221;) filed a lawsuit against Honeywell and other insurance carriers in the Supreme Court of New York, County of New York, disputing obligations for NARCO-related asbestos claims under high excess insurance coverage issued by Travelers and other insurance carriers. Approximately $340 million of coverage under these policies is included in our NARCO-related insurance receivable at June 30, 2009. Honeywell believes it is entitled to the coverage at issue and expects to prevail in this matter. In the third quarter of 2007, Honeywell prevailed on a critical choice of law issue concerning the appropriate method of allocating NARCO-related asbestos liabilities to triggered policies. The plaintiffs appealed and the trial court&#8217;s ruling was upheld by the appellate court in the second quarter of 2009. A related New Jersey action brought by Honeywell has been dismissed, but all coverage claims against plaintiffs have been preserved in the New York action. <span style= "mso-spacerun:yes">&#160;</span>Based upon (i) our understanding of relevant facts and applicable law, (ii) the terms of the insurance policies at issue, (iii) our experience on matters of this nature, and (iv) the advice of counsel, we believe that the amount due from Travelers and other insurance carriers ($340 million at June 30, 2009) is probable of recovery. While Honeywell expects to prevail in this matter, an adverse outcome could have a material impact on our results of operations in the period recognized but would not be material to our consolidated financial position or operating cash flows.</span></b></span> </p> <p class="MsoNormal" style= "margin-top:8.0pt;text-align:justify;text-indent:.5in"> <span><b style="mso-bidi-font-weight: normal"><span style= "font-size:10.0pt;font-family:Courier New">Projecting future events is subject to many uncertainties that could cause the NARCO related asbestos liabilities or assets to be higher or lower than those projected and recorded. There is no assurance that the plan of reorganization will become final, that insurance recoveries will be timely or whether there will be any NARCO related asbestos claims beyond 2018. Given the inherent uncertainty in predicting future events, we review our estimates periodically, and update them based on our experience and other relevant factors. Similarly we will reevaluate our projections concerning our probable insurance recoveries in light of any changes to the projected liability or other developments that may impact insurance recoveries.</span></b></span> </p> <p class="MsoNormal" style= "margin-top:8.0pt;text-align:justify;text-indent:.5in"> <span><b><i><span style= "font-size:10.0pt;font-family:Courier New">Friction Products</span></i></b></span> <span><b style= "mso-bidi-font-weight: normal"><span style= "font-size:10.0pt;font-family:Courier New">&#8212; Honeywell&#8217;s Bendix friction materials (Bendix) business manufactured automotive brake parts that contained chrysotile asbestos in an encapsulated form. Existing and potential claimants consist largely of individuals who allege exposure to asbestos from brakes from either performing or being in the vicinity of individuals who performed brake replacements.</span></b></span> </p> <p class="MsoNormal" style= "margin-top:8.0pt;text-align:justify;text-indent:.5in"> <span><b style="mso-bidi-font-weight: normal"><span style= "font-size:10.0pt;font-family:Courier New">From 1981 through June 30, 2009, we have resolved approximately 119,000 Bendix related asbestos claims. We had 129 trials resulting in favorable verdicts and 15 trials resulting in adverse verdicts. Two of these adverse verdicts were reversed on appeal, three verdicts were vacated on post-trial motions, three claims were settled and the remaining have been or will be appealed. 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height:24.0pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="192" colspan="2" valign="top" style= "width:2.0in;border:none;border-bottom: solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:24.0pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">Year Ended</span></b></span> </p> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">December 31,</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:1"> <td width="295" valign="top" style= "width:221.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= 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Courier New"><span style= "mso-spacerun:yes">&#160;&#160;</span> <u>2008</u>&#160;</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;border:none;border-top:solid windowtext 1.0pt; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;</span> <u>2007</u></span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:2"> <td width="295" valign="top" style= "width:221.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:9.0pt; font-family:Courier New">Claims Activity</span></u></b></span> </p> </td> <td width="145" valign="top" style= "width:108.65pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="23" valign="top" style= "width:17.35pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:3"> <td width="295" valign="top" style= "width:221.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">Claims Unresolved at the beginning</span></b></span> </p> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;</span> of period</span></b></span> </p> </td> <td width="145" valign="top" style= "width:108.65pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">&#160;</span></b></span> </p> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;&#160;&#160;&#160;</span> 51,951</span></b></span> </p> </td> <td width="23" valign="top" style= "width:17.35pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">&#160;</span></b></span> </p> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;&#160;</span> 51,658</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">&#160;</span></b></span> </p> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;&#160;</span> 57,108</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:4"> <td width="295" valign="top" style= "width:221.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">Claims Filed during the period</span></b></span> </p> </td> <td width="145" valign="top" style= "width:108.65pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;&#160;&#160;&#160;&#160;</span> 1,353</span></b></span> </p> </td> <td width="23" valign="top" style= "width:17.35pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;&#160;&#160;</span> 4,003</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;&#160;&#160;</span> 2,771</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:5"> <td width="295" valign="top" style= "width:221.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">Claims Resolved during the period</span></b></span> </p> </td> <td width="145" valign="top" style= "width:108.65pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;&#160;&#160;&#160;</span> <u>(2,194</u>)</span></b></span> </p> </td> <td width="23" valign="top" style= "width:17.35pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;&#160;</span> <u>(3,710</u>)</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;&#160;</span> <u>(8,221</u>)</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:6"> <td width="295" valign="top" style= "width:221.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> 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"mso-spacerun:yes">&#160;&#160;&#160;</span> <u style= "text-underline: double">51,951</u></span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;&#160;</span> <u style= "text-underline: double">51,658</u></span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:7"> <td width="295" valign="top" style= "width:221.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="145" valign="top" style= "width:108.65pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="23" valign="top" style= "width:17.35pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:8"> <td width="295" valign="top" style= "width:221.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:9.0pt; font-family:Courier New">Disease Distribution of Unresolved</span></u></b></span> </p> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:9.0pt; font-family:Courier New">Claims</span></u></b></span> </p> </td> <td width="145" valign="top" style= "width:108.65pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="23" valign="top" style= "width:17.35pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="192" colspan="2" valign="top" style= "width:2.0in;border:none;border-bottom: solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">&#160;</span></b></span> </p> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">December 31,</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:9"> <td width="295" valign="top" style= "width:221.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="145" valign="top" style= "width:108.65pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">June 30, 2009</span></b></span> </p> </td> <td width="23" valign="top" style= "width:17.35pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;&#160;</span> <u>2008</u></span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;border:none;border-top:solid windowtext 1.0pt; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;&#160;</span> <u>2007</u></span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:10"> <td width="295" valign="top" style= "width:221.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">Mesothelioma and Other Cancer Claims</span></b></span> </p> </td> <td width="145" valign="top" style= "width:108.65pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;&#160;&#160;&#160;&#160;</span> 5,787</span></b></span> </p> </td> <td width="23" valign="top" style= "width:17.35pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;&#160;&#160;</span> 5,575</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;&#160;&#160;</span> 5,011</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:11"> <td width="295" valign="top" style= "width:221.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">Other Claims</span></b></span> </p> </td> <td width="145" valign="top" style= "width:108.65pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: 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style="mso-yfti-irow:12;mso-yfti-lastrow:yes"> <td width="295" valign="top" style= "width:221.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;</span> Total Claims</span></b></span> </p> </td> <td width="145" valign="top" style= "width:108.65pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;&#160;&#160;&#160;</span> <u style= "text-underline:double">51,110</u></span></b></span> </p> </td> <td width="23" valign="top" style= "width:17.35pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;&#160;</span> <u style= "text-underline: double">51,951</u></span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;&#160;</span> <u style= "text-underline: double">51,658</u></span></b></span> </p> </td> </tr> </table> <p class="MsoNormal"> <span><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> <p class="MsoNormal" style= "margin-top:8.0pt;text-align:justify;text-indent:.5in"> <span><b style="mso-bidi-font-weight: normal"><span style= "font-size:10.0pt;font-family:Courier New">Approximately 45 percent of the approximately 51,000 pending claims at June 30, 2009 are on the inactive, deferred, or similar dockets established in some jurisdictions for claimants who allege minimal or no impairment. The approximately 51,000 pending claims also include claims filed in jurisdictions such as Texas, Virginia, and Mississippi that historically allowed for consolidated filings. In these jurisdictions, plaintiffs were permitted to file complaints against a pre-determined master list of defendants, regardless of whether they have claims against each individual defendant. Many of these plaintiffs may not actually intend to assert claims against Honeywell. Based on state rules and prior experience in these jurisdictions, we anticipate that many of these claims will ultimately be dismissed.</span></b></span> </p> <p class="MsoNormal" style= "margin-top:8.0pt;text-align:justify;text-indent:.5in"> <span><b style="mso-bidi-font-weight: normal"><span style= "font-size:10.0pt;font-family:Courier New">Honeywell has experienced average resolution values per claim excluding legal costs as follows:</span></b></span> </p> <p class="MsoNormal"> <span><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" width="655" style= "width:491.4pt;border-collapse:collapse;mso-yfti-tbllook:480;mso-padding-alt: 0in 5.4pt 0in 5.4pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="307" valign="top" style= "width:3.2in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="348" colspan="3" valign="top" style= "width:261.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:10.0pt; font-family:Courier New">&#160;&#160;&#160;&#160;&#160;Years Ended December 31,&#160;&#160;&#160;&#160;&#160;</span></u></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:1"> <td width="307" valign="top" style= "width:3.2in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:10.0pt; font-family:Courier New">2008</span></u></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:10.0pt; font-family:Courier New">2007</span></u></b></span> </p> </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:10.0pt; font-family:Courier New">2006</span></u></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:2"> <td width="307" valign="top" style= "width:3.2in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="348" colspan="3" valign="top" style= "width:261.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">(in whole dollars)</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:3"> <td width="307" valign="top" style= "width:3.2in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Malignant claims</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;</span> $65,000</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;</span> $33,000</span></b></span> </p> </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;</span> $33,000</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:4;mso-yfti-lastrow:yes"> <td width="307" valign="top" style= "width:3.2in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Nonmalignant claims</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;</span> $1,500</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;&#160;</span> $500</span></b></span> </p> </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;&#160;</span> $250</span></b></span> </p> </td> </tr> </table> <p class="MsoNormal" style= "margin-top:8.0pt;text-align:justify;text-indent:.5in"> <span><b style="mso-bidi-font-weight: normal"><span style= "font-size:10.0pt;font-family:Courier New">It is not possible to predict whether resolution values for Bendix related asbestos claims will increase, decrease or stabilize in the future.</span></b></span> </p> <p class="MsoNormal" style= "margin-top:8.0pt;text-align:justify;text-indent:.5in"> <span><b style="mso-bidi-font-weight: normal"><span style= "font-size:10.0pt;font-family:Courier New">Our consolidated financial statements reflect an estimated liability for resolution of pending and future Bendix related asbestos claims of $596 and $578 million at June 30, 2009 and December 31, 2008, respectively. The estimated liability for future claims represents the estimated value of future asbestos related bodily injury claims expected to be asserted against Bendix over the next five years. In light of the uncertainties inherent in making long-term projections, as well as certain factors unique to friction product asbestos claims, we do not believe that we have a reasonable basis for estimating asbestos claims beyond the next five years under SFAS No. 5, &#8220;Accounting for Contingencies&#8221;. The estimate is based upon Bendix historical experience in the tort system for the three years ended December 31, 2008 with respect to claims filing and resolution values. The methodology used to estimate the liability for future claims has been commonly accepted by numerous courts. It is similar to that used to estimate the future NARCO related asbestos claims liability.</span></b></span> </p> <p class="MsoNormal" style= "margin-top:8.0pt;text-align:justify;text-indent:.5in"> <span><b style="mso-bidi-font-weight: normal"><span style= "font-size:10.0pt;font-family:Courier New">Honeywell currently has approximately $1.9 billion of insurance coverage remaining with respect to pending and potential future Bendix related asbestos claims, of which $167 and $156 million are reflected as receivables in our consolidated balance sheet at June 30, 2009 and December 31, 2008, respectively. This coverage is provided by a large number of insurance policies written by dozens of insurance companies in both the domestic insurance market and the London excess market. Insurance receivables are recorded in the financial statements simultaneous with the recording of the liability for the estimated value of the underlying asbestos claims. The amount of the insurance receivable recorded is based on our ongoing analysis of the insurance that we estimate is probable of recovery. This determination is based on our analysis of the underlying insurance policies, our historical experience with our insurers, our ongoing review of the solvency of our insurers, our interpretation of judicial determinations relevant to our insurance programs, and our consideration of the impacts of any settlements reached with our insurers. Insurance receivables are also recorded when structured insurance settlements provide for future fixed payment streams that are not contingent upon future claims or other events. Such amounts are recorded at the net present value of the fixed payment stream.</span></b></span> </p> <p class="MsoNormal" style= "margin-top:8.0pt;text-align:justify;text-indent:.5in"> <span><b style="mso-bidi-font-weight: normal"><span style= "font-size:10.0pt;font-family:Courier New">On a cumulative historical basis, Honeywell has recorded insurance receivables equal to approximately 50 percent of the value of the underlying asbestos claims recorded. However, because there are gaps in our coverage due to insurance company insolvencies, certain uninsured periods, and insurance settlements, this rate is expected to decline for any future Bendix related asbestos liabilities that may be recorded. Future recoverability rates may also be impacted by numerous other factors, such as future insurance settlements, insolvencies and judicial determinations relevant to our coverage program, which are difficult to predict. Assuming continued defense and indemnity spending at current levels, we estimate that the cumulative recoverability rate could decline over the next five years to approximately 40 percent.</span></b></span> </p> <p class="MsoNormal" style= "margin-top:8.0pt;text-align:justify;text-indent:.5in"> <span><b style="mso-bidi-font-weight: normal"><span style= "font-size:10.0pt;font-family:Courier New">Honeywell believes it has sufficient insurance coverage and reserves to cover all pending Bendix related asbestos claims and Bendix related asbestos claims estimated to be filed within the next five years. Although it is impossible to predict the outcome of either pending or future Bendix related asbestos claims, we do not believe that such claims would have a material adverse effect on our consolidated financial position in light of our insurance coverage and our prior experience in resolving such claims. If the rate and types of claims filed, the average resolution value of such claims and the period of time over which claim settlements are paid (collectively, the &#8220;Variable Claims Factors&#8221;) do not substantially change, Honeywell would not expect future Bendix related asbestos claims to have a material adverse effect on our results of operations or operating cash flows in any fiscal year. No assurances can be given, however, that the Variable Claims Factors will not change.</span></b></span> </p> <p class="MsoNormal" style= "margin-top:8.0pt;text-align:justify;text-indent:.5in"> <span><b style="mso-bidi-font-weight: normal"><span style= "font-size:10.0pt;font-family:Courier New">The following tables summarize information concerning NARCO and Bendix asbestos related balances:</span></b></span> </p> <p class="MsoNormal" style= "margin-top:8.0pt;text-align:justify;text-indent:.5in"> <span><b style="mso-bidi-font-weight: normal"><span style= "font-size:10.0pt;font-family:Courier New">&#160;</span></b></span> </p> <p class="MsoNormal" style="mso-outline-level:1"> <span><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Asbestos Related Liabilities</span></b></span> </p> <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" width="667" style= "width:6.95in;border-collapse:collapse;mso-yfti-tbllook:480;mso-padding-alt: 0in 5.4pt 0in 5.4pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="415" valign="top" style= "width:311.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="252" colspan="3" valign="top" style= "width:189.0pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">Six Months Ended</span></b></span> </p> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">&#160;&#160;&#160;&#160;&#160; June 30, 2009 &#160;&#160;&#160;&#160;&#160;</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:1"> <td width="415" valign="top" style= "width:311.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:9.0pt; font-family:Courier New">Bendix</span></u></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;border:none;border-top:solid windowtext 1.0pt; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:9.0pt; font-family:Courier New">NARCO</span></u></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;border:none;border-top:solid windowtext 1.0pt; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:9.0pt; font-family:Courier New">Total</span></u></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:2"> <td width="415" valign="top" style= "width:311.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">Beginning of period</span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;</span> $ 578</span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;</span>$1,131</span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;</span>$1,709</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:3"> <td width="415" valign="top" style= "width:311.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">Accrual for update to estimated liability</span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;&#160;</span> <span style= "mso-spacerun:yes">&#160;</span>83</span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;&#160;&#160;&#160;</span> 2</span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;&#160;</span> <span style= "mso-spacerun:yes">&#160;</span>85</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:4"> <td width="415" valign="top" style= "width:311.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">Asbestos related liability payments</span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;</span> <u><span style= "mso-spacerun:yes">&#160;&#160;</span>(65</u>)</span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;</span><u><span style= "mso-spacerun:yes">&#160;</span> <span style= "mso-spacerun:yes">&#160;</span><span style= "mso-spacerun:yes">&#160;</span>(1)</u></span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;</span><u><span style= "mso-spacerun:yes">&#160;</span> <span style= "mso-spacerun:yes">&#160;</span>(66</u>)</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:5;mso-yfti-lastrow:yes"> <td width="415" valign="top" style= "width:311.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">End of period</span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;</span> <u style= "text-underline: double">$ 596</u></span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;</span><u style= "text-underline: double">$1,132</u></span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;</span><u style= "text-underline: double">$1,728</u></span></b></span> </p> </td> </tr> </table> <p class="MsoNormal"> <span><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> <p class="MsoNormal" style="mso-outline-level:1"> <span><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Insurance Recoveries for Asbestos Related Liabilities</span></b></span> </p> <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" width="667" style= "width:6.95in;border-collapse:collapse;mso-yfti-tbllook:480;mso-padding-alt: 0in 5.4pt 0in 5.4pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="415" valign="top" style= "width:311.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="252" colspan="3" valign="top" style= "width:189.0pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">Six Months Ended</span></b></span> </p> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">&#160;&#160;&#160;&#160;&#160; June 30, 2009 &#160;&#160;&#160;&#160;&#160;</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:1"> <td width="415" valign="top" style= "width:311.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:9.0pt; font-family:Courier New">Bendix</span></u></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;border:none;border-top:solid windowtext 1.0pt; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:9.0pt; font-family:Courier New">NARCO</span></u></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;border:none;border-top:solid windowtext 1.0pt; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:9.0pt; font-family:Courier New">Total</span></u></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:2"> <td width="415" valign="top" style= "width:311.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">Beginning of period</span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;</span> $ 156</span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;</span><span style= "mso-spacerun:yes">&#160;</span> $877</span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;</span>$1,033</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:3"> <td width="415" valign="top" style= "width:311.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">Probable insurance recoveries related to <span style= "mso-spacerun:yes">&#160;</span><span style= "mso-spacerun:yes">&#160;&#160;</span></span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;&#160;&#160;</span> <span style= "mso-spacerun:yes">&#160;</span><span style= "mso-spacerun:yes">&#160;</span></span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;&#160;&#160;&#160;</span></span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;&#160;&#160;</span> <span style= "mso-spacerun:yes">&#160;</span></span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:4"> <td width="415" valign="top" style= "width:311.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;</span> estimated liability</span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;&#160;&#160;</span> 12</span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;&#160;&#160;&#160;</span> -</span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;&#160;&#160;</span> 12</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:5"> <td width="415" valign="top" style= "width:311.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">Insurance receipts for asbestos related liabilities</span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;</span> <u><span style= "mso-spacerun:yes">&#160;</span><span style= "mso-spacerun:yes">&#160;</span><span style= "mso-spacerun:yes">&#160;</span>(1)</u></span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;</span> <u><span style= "mso-spacerun:yes">&#160;</span><span style= "mso-spacerun:yes">&#160;</span>(4)</u></span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;</span><u><span style= "mso-spacerun:yes">&#160;</span> <span style= "mso-spacerun:yes">&#160;</span><span style= "mso-spacerun:yes">&#160;</span>(5</u>)</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:6;mso-yfti-lastrow:yes"> <td width="415" valign="top" style= "width:311.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New">End of period</span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;</span> <u style= "text-underline: double">$ 167</u></span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;</span><span style= "mso-spacerun:yes">&#160;</span> <u style= "text-underline:double">$873</u></span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;</span><u style= "text-underline: double">$1,040</u></span></b></span> </p> </td> </tr> </table> <p class="MsoNormal" style="text-indent:.5in"> <span><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> <p class="MsoNormal" style="text-indent:.5in"> <span><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> <p class="MsoNormal" style="text-indent:.5in"> <span><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style= "mso-tab-count:1">&#160;&#160;&#160;&#160;&#160;</span></span></b></span> </p> <p class="MsoNormal" style="text-indent:.5in"> <span><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">NARCO and Bendix asbestos related balances are included in the following balance sheet accounts:</span></b></span> </p> <p class="MsoNormal"> <span><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" width="667" style= "width:6.95in;border-collapse:collapse;mso-yfti-tbllook:480;mso-padding-alt: 0in 5.4pt 0in 5.4pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="439" valign="top" style= "width:329.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="92" valign="top" style= "width:69.2pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">June 30,</span></b></span> </p> </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:10.0pt; font-family:Courier New"><span style="text-decoration:none"> &#160;</span></span></u></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">December 31,</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:1"> <td width="439" valign="top" style= "width:329.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="92" valign="top" style= "width:69.2pt;border:none;border-bottom:solid windowtext 1.0pt; mso-border-bottom-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;</span> 2009</span></b></span> </p> </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;border-bottom:solid windowtext 1.0pt; mso-border-bottom-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;</span> 2008</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:2"> <td width="439" valign="top" style= "width:329.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Other current assets</span></b></span> </p> </td> <td width="92" valign="top" style= "width:69.2pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span>$<span style="mso-spacerun:yes">&#160;&#160;</span> <span style= "mso-spacerun:yes">&#160;</span>4</span></b></span> </p> </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;</span> $<span style="mso-spacerun:yes">&#160;</span> <span style="mso-spacerun:yes">&#160;</span><span style= "mso-spacerun:yes">&#160;</span>4</span></b></span> </p> </td> </tr> <tr style= "mso-yfti-irow:3;mso-prop-change:Honeywell 20080401T1728; mso-yfti-irow:3 !msorm"> <td width="439" valign="top" style= "width:329.4pt;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Insurance recoveries for asbestos related liabilities</span></b></span> </p> </td> <td width="92" valign="top" style= "width:69.2pt;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span><u><span style= "mso-spacerun:yes">&#160;</span>1,036</u></span></b></span> </p> </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm"> <p 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valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;</span> <u style= "text-underline: double">$1,033</u></span></b></span> </p> </td> </tr> <tr style= "mso-yfti-irow:5;mso-prop-change:Honeywell 20080401T1728; mso-yfti-irow:5 !msorm"> <td width="439" valign="top" style= "width:329.4pt;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="92" valign="top" style= "width:69.2pt;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> </tr> <tr style= "mso-yfti-irow:6;mso-prop-change:Honeywell 20080401T1728; mso-yfti-irow:6 !msorm"> <td width="439" valign="top" style= "width:329.4pt;padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm"> <p 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style="margin-top:8.0pt"> <span><b><span style= "font-size:10.0pt;font-family:Courier New">Other Matters</span></b></span> </p> <p class="MsoNormal"> <span><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;mso-bidi-font-size: 12.0pt;font-family:Courier New"> &#160;</span></b></span> </p> <p class="MsoNormal" style= "margin-top:8.0pt;text-align:justify;text-indent:.5in"> <span><span style= "mso-bidi-font-size:10.0pt;font-family:Arial,sans-serif"><span style="mso-spacerun:yes"> &#160;</span></span></span><span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">We are subject to a number of other lawsuits, investigations and disputes (some of which involve substantial amounts claimed) arising out of the conduct of our business, including matters relating to commercial transactions, government contracts, product liability, prior acquisitions and divestitures, employee benefit plans, intellectual property, and health and safety matters. We recognize a liability for any contingency that is probable of occurrence and reasonably estimable. We continually assess the likelihood of adverse judgments of outcomes in these matters, as well as potential ranges of possible losses (taking into consideration any insurance recoveries), based on a careful analysis of each matter with the assistance of outside legal counsel and, if applicable, other experts. Included in these other matters are the following:</span></b></span> </p> <p class="MsoNormal" style= "margin-top:8.0pt;text-align:justify;text-indent:.5in"> <span><b><i><span style= "font-size:10.0pt;font-family:Courier New">Allen, et al. v. Honeywell Retirement Earnings Plan</span></i></b></span> <span><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#8212; Pursuant to a settlement approved by the U.S. District Court for the District of Arizona in February 2008, 18 of 21 claims alleged by plaintiffs in this class action lawsuit were dismissed with prejudice in exchange for approximately $35 million and the maximum aggregate liability for the remaining three claims (alleging that Honeywell impermissibly reduced the pension benefits of certain employees of a predecessor entity when the plan was amended in 1983 and failed to calculate benefits in accordance with the terms of the plan) was capped at $500 million. Any amounts payable, including the settlement amount, have or will be paid from the Company&#8217;s pension plan. We continue to expect to prevail on the remaining claims in light of applicable law and our substantial affirmative defenses, which have not yet been considered by the Court. Accordingly, we do not believe that a liability is probable of occurrence and reasonably estimable with respect to these claims and we have not recorded a provision for the remaining claims in our financial statements.</span></b></span> </p> <p class="MsoNormal" style= "margin-top:8.0pt;text-align:justify;text-indent:.5in"> <span><b><i><span style= "font-size:10.0pt;font-family:Courier New">Quick Lube</span></i></b></span> <span><b style= "mso-bidi-font-weight: normal"><span style= "font-size:10.0pt;font-family:Courier New">&#8212; On March 31, 2008, S&amp;E Quick Lube, a filter distributor, filed suit in U.S. District Court for the District of Connecticut alleging that twelve filter manufacturers, including Honeywell, engaged in a conspiracy to fix prices, rig bids and allocate U.S. customers for aftermarket automotive filters. This suit is a purported class action on behalf of direct purchasers of filters from the defendants. Parallel purported class actions, including on behalf of indirect purchasers of filters, have been filed by other plaintiffs in a variety of jurisdictions in the United States and Canada. The U.S cases have been consolidated into a single multi-district litigation in the Northern District of Illinois. We intend to vigorously defend the claims raised in these actions. The Antitrust Division of the Department of Justice (DOJ) is also investigating the allegations raised in these suits. We are fully cooperating with the DOJ investigation.</span></b></span> </p> <p class="MsoNormal" style= "margin-top:8.0pt;text-align:justify;text-indent:.5in"> <span><b style="mso-bidi-font-weight: normal"><span style= "font-size:10.0pt;font-family:Courier New">Given the uncertainty inherent in litigation and investigations (including the specific matters referenced above), we do not believe it is possible to develop estimates of reasonably possible loss in excess of current accruals for these matters. Considering our past experience and existing accruals, we do not expect the outcome of these matters, either individually or in the aggregate, to have a material adverse effect on our consolidated financial position. Because most contingencies are resolved over long periods of time, potential liabilities are subject to change due to new developments, changes in settlement strategy or the impact of evidentiary requirements, which could cause us to pay damage awards or settlements (or become subject to equitable remedies) that could have a material adverse effect on our results of operations or operating cash flows in the periods recognized or paid.</span></b></span> </p> <style> /*<![CDATA[*/ st1:*{behavior:url(#ieooui) } <!-- /* Font Definitions */ @font-face {font-family:"Cambria Math"; panose-1:2 4 5 3 5 4 6 3 2 4; mso-font-charset:0; mso-generic-font-family:roman; mso-font-pitch:variable; mso-font-signature:-1610611985 1107304683 0 0 159 0;} /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {mso-style-unhide:no; mso-style-qformat:yes; mso-style-parent:""; margin:0in; margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:12.0pt; font-family:"Times New Roman","serif"; mso-fareast-font-family:"Times New Roman";} .MsoChpDefault {mso-style-type:export-only; mso-default-props:yes; font-size:10.0pt; mso-ansi-font-size:10.0pt; mso-bidi-font-size:10.0pt;} @page Section1 {size:8.5in 11.0in; margin:1.0in 1.0in 1.0in 1.0in; mso-header-margin:.5in; mso-footer-margin:.5in; mso-paper-source:0;} div.Section1 {page:Section1;} --> /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-qformat:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman","serif";} /*]]>*/ </style> </div> NOTE 15. 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height:12.75pt"> <p class="MsoNormal"> <span><b><span style= "font-size:9.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="81" nowrap="nowrap" valign="bottom" style= "width:60.75pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt"> <p class="MsoNormal"> <span><b><span style= "font-size:9.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt"> <p class="MsoNormal"> <span><b><span style= "font-size:9.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="76" nowrap="nowrap" valign="bottom" style= "width:57.3pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt"> <p class="MsoNormal"> <span><b><span style= "font-size:9.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt"> <p class="MsoNormal"> <span><b><span style= "font-size:9.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="72" nowrap="nowrap" valign="bottom" style= "width:54.1pt;padding:0in 5.4pt 0in 5.4pt; 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height:13.5pt"> <p class="MsoNormal"> <span><b><span style= "font-size:9.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="72" nowrap="nowrap" valign="bottom" style= "width:54.1pt;border:none;border-bottom: double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt"> <p class="MsoNormal"> <span><b><span style= "font-size:9.0pt;font-family:Courier New"><span style= "mso-spacerun:yes">&#160;</span>$ 0.96</span></b></span> </p> </td> </tr> </table> <p class="MsoNormal"> <span><b style="mso-bidi-font-weight:normal">&#160;</b></span> </p> <p class="MsoNormal"> <span><b style="mso-bidi-font-weight:normal">&#160;</b></span> </p> <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" width="649" style= "width:486.75pt;margin-left:4.65pt;border-collapse:collapse;mso-padding-alt: 0in 5.4pt 0in 5.4pt"> <tr style= "mso-yfti-irow:0;mso-yfti-firstrow:yes;height:12.75pt"> <td width="277" nowrap="nowrap" valign="bottom" style= "width:207.75pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt"> <p class="MsoNormal"> <span><b><span style= "font-size:9.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="29" nowrap="nowrap" valign="bottom" style= "width:22.0pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt"> <p class="MsoNormal"> <span><b><span style= "font-size:9.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="343" nowrap="nowrap" colspan="7" valign="bottom" style= "width:257.0pt;border: none;border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:12.75pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:9.0pt;font-family:Courier New">Six Months Ended June 30,</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:1;height:12.75pt"> <td width="277" nowrap="nowrap" valign="bottom" style= "width:207.75pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt"> <p class="MsoNormal"> <span><b><span style= "font-size:9.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="29" nowrap="nowrap" valign="bottom" style= "width:22.0pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt"> <p class="MsoNormal"> <span><b><span style= "font-size:9.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="163" nowrap="nowrap" colspan="3" valign="bottom" style= "width:122.0pt;border: none;border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:12.75pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:9.0pt;font-family:Courier New">2009</span></b></span> </p> </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt"> <p class="MsoNormal"> <span><b><span style= "font-size:9.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="164" nowrap="nowrap" colspan="3" valign="bottom" style= "width:123.2pt;border: none;border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:12.75pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:9.0pt;font-family:Courier New">2008</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:2;height:12.75pt"> <td width="277" nowrap="nowrap" valign="bottom" style= "width:207.75pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:9.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="29" nowrap="nowrap" valign="bottom" style= "width:22.0pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:9.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="66" nowrap="nowrap" valign="bottom" style= "width:49.45pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:9.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:9.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="81" nowrap="nowrap" valign="bottom" style= "width:60.75pt;padding:0in 5.4pt 0in 5.4pt; 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height:12.75pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:9.0pt;font-family:Courier New">Assuming</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:3;height:12.75pt"> <td width="277" nowrap="nowrap" valign="bottom" style= "width:207.75pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:9.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="29" nowrap="nowrap" valign="bottom" style= "width:22.0pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:9.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="66" nowrap="nowrap" valign="bottom" style= "width:49.45pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:12.75pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:9.0pt;font-family:Courier New">Basic</span></b></span> </p> </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:9.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="81" nowrap="nowrap" valign="bottom" style= "width:60.75pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:12.75pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:9.0pt;font-family:Courier New">Dilution</span></b></span> </p> </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:9.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="76" nowrap="nowrap" valign="bottom" style= "width:57.3pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:12.75pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:9.0pt;font-family:Courier New">Basic</span></b></span> </p> </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; 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height:12.75pt"> <p class="MsoNormal"> <span><b><span style= "font-size:9.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt"> <p class="MsoNormal"> <span><b><span style= "font-size:9.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="81" nowrap="nowrap" valign="bottom" style= "width:60.75pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt"> <p class="MsoNormal"> <span><b><span style= "font-size:9.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt"> <p class="MsoNormal"> <span><b><span style= "font-size:9.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="76" nowrap="nowrap" valign="bottom" style= "width:57.3pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt"> <p class="MsoNormal"> <span><b><span style= "font-size:9.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt"> <p class="MsoNormal"> <span><b><span style= "font-size:9.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="72" nowrap="nowrap" valign="bottom" style= "width:54.1pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt"> <p class="MsoNormal"> <span><b><span style= "font-size:9.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:5;height:13.5pt"> <td width="277" nowrap="nowrap" valign="bottom" style= "width:207.75pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt"> <p class="MsoNormal"> <span><b><span style= "font-size:9.0pt;font-family:Courier New">Net income attributable to Honeywell</span></b></span> </p> </td> <td width="29" nowrap="nowrap" valign="bottom" style= "width:22.0pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt"> <p class="MsoNormal"> <span><b><span style= "font-size:9.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="66" nowrap="nowrap" valign="bottom" style= "width:49.45pt;border:none; border-bottom:double windowtext 2.25pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt"> <p class="MsoNormal"> <span><b><span style= "font-size:9.0pt;font-family:Courier New"><span style= "mso-spacerun:yes">&#160;</span>$<span style= "mso-spacerun:yes">&#160;</span> 847<span style= "mso-spacerun:yes">&#160;</span></span></b></span> </p> </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt"> <p class="MsoNormal"> <span><b><span style= "font-size:9.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="81" nowrap="nowrap" valign="bottom" style= "width:60.75pt;border:none; border-bottom:double windowtext 2.25pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt"> <p class="MsoNormal"> <span><b><span style= "font-size:9.0pt;font-family:Courier New"><span style= "mso-spacerun:yes">&#160;</span>$<span style= "mso-spacerun:yes">&#160;</span> 847<span style= "mso-spacerun:yes">&#160;&#160;</span></span></b></span> </p> </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; 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height:12.75pt"> <p class="MsoNormal"> <span><b><span style= "font-size:9.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="81" nowrap="nowrap" valign="bottom" style= "width:60.75pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt"> <p class="MsoNormal"> <span><b><span style= "font-size:9.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt"> <p class="MsoNormal"> <span><b><span style= "font-size:9.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="76" nowrap="nowrap" valign="bottom" style= "width:57.3pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt"> <p class="MsoNormal"> <span><b><span style= "font-size:9.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt"> <p class="MsoNormal"> <span><b><span style= "font-size:9.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="72" nowrap="nowrap" valign="bottom" style= "width:54.1pt;padding:0in 5.4pt 0in 5.4pt; 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height:11.25pt"> <p class="MsoNormal"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="68" nowrap="nowrap" valign="bottom" style= "width:51.2pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt;height:11.25pt"> <p class="MsoNormal"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:9;height:24.75pt"> <td width="301" colspan="2" valign="bottom" style= "width:225.75pt;padding:0in 5.4pt 0in 5.4pt; height:24.75pt"> <p class="MsoNormal"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">Asbestos related litigation charges,</span></b></span> </p> <p class="MsoNormal"> <span><b><span style= "font-size:8.0pt;font-family:Courier New"><span style= "mso-spacerun:yes">&#160;</span> net of insurance</span></b></span> </p> </td> <td width="72" nowrap="nowrap" valign="bottom" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt; 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height:24.0pt"> <p class="MsoNormal"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="68" valign="bottom" style= "width:51.2pt;border:none;border-bottom: double windowtext 1.5pt;mso-border-top-alt:solid windowtext .5pt;padding: 0in 5.4pt 0in 5.4pt;height:24.0pt"> <p class="MsoNormal"> <span><b><span style= "font-size:8.0pt;font-family:Courier New"><span style= "mso-spacerun:yes">&#160;</span>$ 150</span></b></span> </p> </td> <td width="48" valign="top" style= "width:.5in;padding:0in 5.4pt 0in 5.4pt; height:24.0pt"> <p class="MsoNormal"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="60" nowrap="nowrap" valign="bottom" style= "width:45.0pt;border:none;border-bottom: double windowtext 1.5pt;mso-border-top-alt:solid windowtext .5pt;padding: 0in 5.4pt 0in 5.4pt;height:24.0pt"> <p class="MsoNormal"> <span><b><span style= "font-size:8.0pt;font-family:Courier New"><span style= "mso-spacerun:yes">&#160;</span>$ 255</span></b></span> </p> </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; 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mso-padding-alt:0in 5.4pt 0in 5.4pt"> <tr style= "mso-yfti-irow:0;mso-yfti-firstrow:yes;height:11.25pt"> <td width="685" nowrap="nowrap" colspan="9" valign="bottom" style= "width:513.8pt;padding: 0in 5.4pt 0in 5.4pt;height:11.25pt"> <p class="MsoNormal"> <span><b><span style= "font-size:10.0pt;font-family:Courier New"><span style= "mso-spacerun:yes">&#160;&#160;&#160;&#160;</span> The following table summarizes the pretax distribution of total net repositioning and other charges by income statement classification:</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:1;height:11.25pt"> <td width="301" nowrap="nowrap" valign="bottom" style= "width:225.75pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt"> <p class="MsoNormal"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="156" nowrap="nowrap" colspan="3" valign="bottom" style= "width:117.0pt;padding: 0in 5.4pt 0in 5.4pt;height:11.25pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="48" nowrap="nowrap" valign="bottom" style= "width:.5in;padding:0in 5.4pt 0in 5.4pt; height:11.25pt"> <p class="MsoNormal"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="144" nowrap="nowrap" colspan="3" valign="bottom" style= "width:1.5in;padding:0in 5.4pt 0in 5.4pt; height:11.25pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="36" nowrap="nowrap" valign="bottom" style= "width:27.05pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt"> <p class="MsoNormal"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:2;height:11.25pt"> <td width="301" nowrap="nowrap" valign="bottom" style= "width:225.75pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt"> <p class="MsoNormal"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="156" nowrap="nowrap" colspan="3" valign="bottom" style= "width:117.0pt;padding: 0in 5.4pt 0in 5.4pt;height:11.25pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">Three Months Ended</span></b></span> </p> </td> <td width="48" nowrap="nowrap" valign="bottom" style= "width:.5in;padding:0in 5.4pt 0in 5.4pt; height:11.25pt"> <p class="MsoNormal"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="144" nowrap="nowrap" colspan="3" valign="bottom" style= "width:1.5in;padding:0in 5.4pt 0in 5.4pt; height:11.25pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">Six Months Ended</span></b></span> </p> </td> <td width="36" nowrap="nowrap" valign="bottom" style= "width:27.05pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt"> <p class="MsoNormal"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:3;height:11.25pt"> <td width="301" nowrap="nowrap" valign="bottom" style= "width:225.75pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="156" colspan="3" valign="bottom" style= "width:117.0pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:11.25pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">June 30,</span></b></span> </p> </td> <td width="48" nowrap="nowrap" valign="bottom" style= "width:.5in;padding:0in 5.4pt 0in 5.4pt; height:11.25pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="144" colspan="3" valign="bottom" style= "width:1.5in;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:11.25pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">June 30,</span></b></span> </p> </td> <td width="36" nowrap="nowrap" valign="bottom" style= "width:27.05pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:4;height:11.25pt"> <td width="301" nowrap="nowrap" valign="bottom" style= "width:225.75pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="72" nowrap="nowrap" valign="bottom" style= "width:.75in;border:none;border-bottom: solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:11.25pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">2009</span></b></span> </p> </td> <td width="24" nowrap="nowrap" valign="bottom" style= "width:.25in;padding:0in 5.4pt 0in 5.4pt; height:11.25pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="60" nowrap="nowrap" valign="bottom" style= "width:45.0pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:11.25pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New"><span style= "mso-spacerun:yes">&#160;</span>2008</span></b></span> </p> </td> <td width="48" nowrap="nowrap" valign="bottom" style= "width:.5in;padding:0in 5.4pt 0in 5.4pt; height:11.25pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="60" nowrap="nowrap" valign="bottom" style= "width:45.0pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:11.25pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">2009</span></b></span> </p> </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;border:none;border-top: solid windowtext 1.0pt;mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="68" nowrap="nowrap" valign="bottom" style= "width:51.2pt;border-top:solid windowtext 1.0pt; border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none; mso-border-top-alt:solid windowtext .5pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:11.25pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New"><span style= "mso-spacerun:yes">&#160;</span>2008</span></b></span> </p> </td> <td width="36" nowrap="nowrap" valign="bottom" style= "width:27.05pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:5;height:11.25pt"> <td width="301" valign="bottom" style= "width:225.75pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt"> <p class="MsoNormal"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">Cost of products and services sold</span></b></span> </p> </td> <td width="72" nowrap="nowrap" valign="bottom" style= "width:.75in;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt;height:11.25pt"> <p class="MsoNormal"> <span><b><span style= "font-size:8.0pt;font-family:Courier New"><span style= "mso-spacerun:yes">&#160;</span>$ 114</span></b></span> </p> </td> <td width="24" nowrap="nowrap" valign="bottom" style= "width:.25in;padding:0in 5.4pt 0in 5.4pt; height:11.25pt"> <p class="MsoNormal"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="60" nowrap="nowrap" valign="bottom" style= "width:45.0pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt"> <p class="MsoNormal"> <span><b><span style= "font-size:8.0pt;font-family:Courier New"><span style= "mso-spacerun:yes">&#160;</span>$ 135</span></b></span> </p> </td> <td width="48" nowrap="nowrap" valign="bottom" style= "width:.5in;padding:0in 5.4pt 0in 5.4pt; 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padding:0in 5.4pt 0in 5.4pt;height:11.25pt"> <p class="MsoNormal"> <span><b><span style= "font-size:8.0pt;font-family:Courier New"><span style= "mso-spacerun:yes">&#160;&#160;&#160;</span> 15</span></b></span> </p> </td> <td width="48" nowrap="nowrap" valign="bottom" style= "width:.5in;padding:0in 5.4pt 0in 5.4pt; height:11.25pt"> <p class="MsoNormal"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="60" nowrap="nowrap" valign="bottom" style= "width:45.0pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:11.25pt"> <p class="MsoNormal"> <span><b><span style= "font-size:8.0pt;font-family:Courier New"><span style= "mso-spacerun:yes">&#160;&#160;&#160;</span> 47</span></b></span> </p> </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt"> <p class="MsoNormal"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="68" nowrap="nowrap" valign="bottom" style= "width:51.2pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:11.25pt"> <p class="MsoNormal"> <span><b><span style= "font-size:8.0pt;font-family:Courier New"><span style= "mso-spacerun:yes">&#160;&#160;&#160;</span> 41</span></b></span> </p> </td> <td width="36" nowrap="nowrap" valign="bottom" style= "width:27.05pt;padding:0in 5.4pt 0in 5.4pt; height:11.25pt"> <p class="MsoNormal"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> </tr> <tr style= "mso-yfti-irow:7;mso-yfti-lastrow:yes;height:13.5pt"> <td width="301" nowrap="nowrap" valign="bottom" style= "width:225.75pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt"> <p class="MsoNormal"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="72" nowrap="nowrap" valign="bottom" style= "width:.75in;border:none;border-bottom: double windowtext 1.5pt;mso-border-top-alt:solid windowtext .5pt;padding: 0in 5.4pt 0in 5.4pt;height:13.5pt"> <p class="MsoNormal"> <span><b><span style= "font-size:8.0pt;font-family:Courier New"><span style= "mso-spacerun:yes">&#160;</span>$ 144</span></b></span> </p> </td> <td width="24" nowrap="nowrap" valign="bottom" style= "width:.25in;padding:0in 5.4pt 0in 5.4pt; 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align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:10.0pt; font-family:Courier New">Total</span></u></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:1"> <td width="259" valign="top" style= "width:2.7in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:2"> <td width="259" valign="top" style= "width:2.7in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Balance at December 31, 2008</span></b></span> </p> </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;</span> $365</span></b></span> </p> </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;</span> $ <span style= "mso-spacerun:yes">&#160;</span>-</span></b></span> </p> </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span> $36</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= 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&#160;&#160;&#160;&#160;&#160;</span> <span style= "mso-spacerun:yes">&#160;</span>4</span></b></span> </p> </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;</span> <span style= "mso-spacerun:yes">&#160;</span>3</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;</span> 149</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:4"> <td width="259" valign="top" style= "width:2.7in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">2009 usage</span></b></span> </p> </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;</span> <span style= "mso-spacerun:yes">&#160;</span>(98)</span></b></span> </p> </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;</span> <span style= "mso-spacerun:yes">&#160;</span>(4)</span></b></span> </p> </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;</span> (2)</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;</span> (104)</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:5"> <td width="259" valign="top" style= "width:2.7in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Adjustments</span></b></span> </p> </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;</span> <u>&#160;(38)</u></span></b></span> </p> </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;</span> &#160;<u>&#160; -</u>&#160;</span></b></span> </p> </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span> <u>&#160;(1)</u></span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;</span> <u><span style= "mso-spacerun:yes">&#160;</span>(39)</u></span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:6"> <td width="259" valign="top" style= "width:2.7in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:7;mso-yfti-lastrow:yes"> <td width="259" valign="top" style= "width:2.7in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Balance at June 30, 2009</span></b></span> </p> </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style="mso-bidi-font-weight:normal"><u style= "text-underline:double"><span style= "font-size:10.0pt;font-family:Courier New">$371</span></u></b></span> </p> </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;</span> <u style="text-underline: double">$ <span style= "mso-spacerun:yes">&#160;</span>-</u></span></b></span> </p> </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span> <u style= "text-underline: double">$36</u></span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;</span> <u style= "text-underline: double">$407</u></span></b></span> </p> </td> </tr> </table> <p class="MsoNormal" style="text-indent:.5in"> <span><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> <p class="MsoBodyText2" style="text-indent:.5in"> <span><span style= "mso-bidi-font-family:Courier New">&#160;</span></span> </p> <p class="MsoBodyText2" style="text-indent:.5in"> <span><span style="mso-bidi-font-family:Courier New">Certain repositioning projects in our Aerospace, Automation and Control Solutions and Transportation Systems segments included exit or disposal activities, the costs related to which, will be recognized in future periods when the actual liability is incurred. The nature of these exit or disposal costs principally includes product recertification and requalification and employee training and travel. The following table summarizes by segment, expected, incurred and remaining exit and disposal costs related to 2008 repositioning actions which we were not able to recognize at the time the actions were initiated. The exit and disposal costs related to the repositioning actions in the first six months of 2009 which we were not able to recognize at the time the actions were initiated were not significant.</span></span> </p> <p class="MsoBodyText2" style="text-indent:.5in"> <span><span style= "mso-bidi-font-family:Courier New">&#160;</span></span> </p> <p class="MsoBodyText2" style="text-indent:.5in"> <span><span style= "mso-bidi-font-family:Courier New">&#160;</span></span> </p> <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" width="667" style= "border-collapse:collapse;mso-table-layout-alt:fixed;mso-yfti-tbllook: 480;mso-padding-alt:0in 5.4pt 0in 5.4pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="283" valign="top" style= "width:2.95in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:10.0pt; font-family:Courier New"><span style="text-decoration:none"> &#160;</span></span></u></b></span> </p> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:10.0pt; font-family:Courier New"><span style="text-decoration:none"> &#160;</span></span></u></b></span> </p> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:10.0pt; font-family:Courier New">Aerospace&#160;</span></u></b></span> </p> </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Automation and Control</span></b></span> </p> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:10.0pt; font-family:Courier New">Solutions</span></u></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Transpor-tation</span></b></span> </p> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:10.0pt; font-family:Courier New">Systems</span></u></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:10.0pt; font-family:Courier New"><span style="text-decoration:none"> &#160;</span></span></u></b></span> </p> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:10.0pt; font-family:Courier New"><span style="text-decoration:none"> &#160;</span></span></u></b></span> </p> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:10.0pt; font-family:Courier New">Total</span></u></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:1"> <td width="283" valign="top" style= "width:2.95in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:2"> <td width="283" valign="top" style= "width:2.95in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Expected exit and disposal costs</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;</span> $113</span></b></span> </p> </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;</span> $27</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span> <span style= "mso-spacerun:yes">&#160;&#160;</span>$11</span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;</span> $151</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:3"> <td width="283" valign="top" style= "width:2.95in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Costs incurred year ended</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;</span></span></b></span> </p> </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;&#160;</span></span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span></span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;</span></span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:4"> <td width="283" valign="top" style= "width:2.95in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;</span> December 31, 2008</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;</span> (12)</span></b></span> </p> </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;&#160;&#160;</span> -</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;</span> <span style= "mso-spacerun:yes">&#160;&#160;</span>(1)</span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;</span> (13)</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:5"> <td width="283" valign="top" style= "width:2.95in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Costs incurred six months</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;&#160;&#160;</span></span></b></span> </p> </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;&#160;&#160;</span></span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;</span></span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;&#160;</span></span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:6"> <td width="283" valign="top" style= "width:2.95in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;</span> ended June 30, 2009</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;</span> <u><span style= "mso-spacerun:yes">&#160;</span>(17)</u></span></b></span> </p> </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;</span> &#160;<u>&#160;(1)</u>&#160;</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span> <span style= "mso-spacerun:yes">&#160;&#160;</span><u>&#160;(1)</u></span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;</span> <u><span style= "mso-spacerun:yes">&#160;</span>(19)</u></span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:7"> <td width="283" valign="top" style= "width:2.95in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Remaining exit and disposal costs</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:8;mso-yfti-lastrow:yes"> <td width="283" valign="top" style= "width:2.95in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;</span> at June 30, 2009</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span><span style= "mso-spacerun:yes">&#160;</span><u style="text-underline:double">$ 84</u></span></b></span> </p> </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;</span> <u style= "text-underline:double">$26</u></span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span> <span style= "mso-spacerun:yes">&#160;&#160;</span><u style= "text-underline:double">$ 9</u></span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;</span> <u style= "text-underline: double">$119</u></span></b></span> </p> </td> </tr> </table> <p class="MsoBodyText2" style="text-indent:.5in"> <span><span style= "mso-bidi-font-family:Courier New">&#160;</span></span> </p> <p class="MsoBodyText2" style="text-indent:.5in"> <span><span style="mso-bidi-font-family:Courier New">In the second quarter of 2009, we recognized a charge of $36 million for environmental liabilities deemed probable and reasonably estimable in the quarter.<span style= "mso-spacerun:yes">&#160;</span> We also recognized a charge of $37 million primarily representing an update to our estimated liability for the resolution of Bendix related asbestos claims as of June 30, 2009, net of probable insurance recoveries.<span style="mso-spacerun:yes">&#160;</span> Environmental and Asbestos matters are discussed in detail in Note 15, Commitments and Contingencies.</span></span> </p> <p class="MsoBodyText2" style="text-indent:.5in"> <span><span style= "mso-bidi-font-family:Courier New">&#160;</span></span> </p> <p class="MsoBodyText2" style="text-indent:.5in"> <span><span style="mso-bidi-font-family:Courier New">In the second quarter of 2008, we recognized a charge of $51 million for environmental liabilities deemed probable and reasonably estimable in the quarter.<span style= "mso-spacerun:yes">&#160;</span> We also recognized a charge of $34 million representing an update to our estimated liability for the resolution of Bendix related asbestos claims as of June 30, 2008, net of probable insurance recoveries.<span style= "mso-spacerun:yes">&#160;&#160;</span></span></span> </p> <p class="MsoBodyText2" style="text-indent:.5in"> <span><span style= "mso-bidi-font-family:Courier New">&#160;</span></span> </p> <p class="MsoBodyText2" style="text-indent:.5in"> <span><span style="mso-bidi-font-family:Courier New">In the first six months of 2009, we recognized a charge of $67 million for environmental liabilities deemed probable and reasonably estimable in the period. 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valign="top" style= "width:239.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:10.0pt; font-family:Courier New">Pension Benefits</span></u></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="96" colspan="2" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="77" valign="top" style= "width:57.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="88" valign="top" style= "width:65.8pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:3"> <td width="319" valign="top" style= "width:239.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Service cost</span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span>$<span style="mso-spacerun:yes">&#160;</span> 54</span></b></span> </p> </td> <td width="96" colspan="2" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span>$<span style="mso-spacerun:yes">&#160;</span> 67</span></b></span> </p> </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="77" valign="top" style= "width:57.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span>$ 111</span></b></span> </p> </td> <td width="88" valign="top" style= "width:65.8pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span>$ 134</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:4"> <td width="319" valign="top" style= "width:239.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Interest cost</span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;</span> 250</span></b></span> </p> </td> <td width="96" colspan="2" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;</span> 262</span></b></span> </p> </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="77" valign="top" style= "width:57.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;</span> 492</span></b></span> </p> </td> <td width="88" valign="top" style= "width:65.8pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span> <span style= "mso-spacerun:yes">&#160;</span>524</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:5"> <td width="319" valign="top" style= "width:239.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Expected return on plan assets</span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span> (333)</span></b></span> </p> </td> <td width="96" colspan="2" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span> (364)</span></b></span> </p> </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;</span></span></b></span> </p> </td> <td width="77" valign="top" style= "width:57.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span> (654)</span></b></span> </p> </td> <td width="88" valign="top" style= "width:65.8pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span> (727)</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:6"> <td width="319" valign="top" style= "width:239.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Amortization of prior service cost</span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;</span> 5</span></b></span> </p> </td> <td width="96" colspan="2" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;</span> 7</span></b></span> </p> </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;</span></span></b></span> </p> </td> <td width="77" valign="top" style= "width:57.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;</span> 12</span></b></span> </p> </td> <td width="88" valign="top" style= "width:65.8pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;</span> 14</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:7"> <td width="319" valign="top" style= "width:239.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Recognition of actuarial losses</span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;</span> 45</span></b></span> </p> </td> <td width="96" colspan="2" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;</span> 12</span></b></span> </p> </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;</span></span></b></span> </p> </td> <td width="77" valign="top" style= "width:57.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;</span> 81</span></b></span> </p> </td> <td width="88" valign="top" style= "width:65.8pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;</span> 24</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:8"> <td width="319" valign="top" style= "width:239.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Settlements and curtailments</span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span><u><span style="mso-spacerun:yes">&#160;&#160;&#160;</span> -</u></span></b></span> </p> </td> <td width="96" colspan="2" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span><u><span style="mso-spacerun:yes">&#160;&#160;&#160;</span> -</u></span></b></span> </p> </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="77" valign="top" style= "width:57.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span><u><span style="mso-spacerun:yes">&#160;&#160;&#160;</span> -</u></span></b></span> </p> </td> <td width="88" valign="top" style= "width:65.8pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span><u><span style="mso-spacerun:yes">&#160;&#160;&#160;</span> 2</u></span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:9"> <td width="319" valign="top" style= "width:239.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span><u style="text-underline: double">$<span style= "mso-spacerun:yes">&#160;</span> 21</u></span></b></span> </p> </td> <td width="96" colspan="2" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span><u style="text-underline: double">$ (16)</u></span></b></span> </p> </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="77" valign="top" style= "width:57.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span><u style="text-underline: double">$<span style= "mso-spacerun:yes">&#160;</span> 42</u></span></b></span> </p> </td> <td width="88" valign="top" style= "width:65.8pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span><u style="text-underline: double">$ (29)</u></span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:10"> <td width="319" valign="top" style= "width:239.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="96" colspan="2" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="77" valign="top" style= "width:57.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="88" valign="top" style= "width:65.8pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:11"> <td width="319" valign="top" style= "width:239.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="96" colspan="2" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="77" valign="top" style= "width:57.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="88" valign="top" style= "width:65.8pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:12"> <td width="319" valign="top" style= "width:239.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="180" colspan="3" valign="top" style= "width:135.0pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Three Months Ended</span></b></span> </p> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160; June 30,&#160;&#160;&#160;</span></b></span> </p> </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="164" colspan="2" valign="top" style= "width:123.2pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Six Months Ended</span></b></span> </p> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160; June 30,&#160;&#160;&#160;</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:13"> <td width="319" valign="top" style= "width:239.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span></span></b></span> </p> </td> <td width="96" colspan="2" valign="top" style= "width:1.0in;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:10.0pt; font-family:Courier New">2009</span></u></b></span><span><b style="mso-bidi-font-weight:normal"><span style="font-size:10.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;border:none;border-top:solid windowtext 1.0pt; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span> <u>2008</u>&#160;</span></b></span> </p> </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="77" valign="top" style= "width:57.4pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:10.0pt; font-family:Courier New">2009</span></u></b></span><span><b style="mso-bidi-font-weight:normal"><span style="font-size:10.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="88" 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style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">June 30,</span></b></span> </p> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:10.0pt; font-family:Courier New">&#160;&#160;&#160;&#160;2009&#160;&#160;&#160;&#160;</span></u></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">December 31,</span></b></span> </p> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:10.0pt; font-family:Courier New">&#160;&#160;&#160;&#160;2008&#160;&#160;&#160;&#160;</span></u></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:1"> <td width="67" valign="top" style= "width:.7in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="324" valign="top" style= "width:243.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:2"> <td width="67" valign="top" style= "width:.7in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="324" valign="top" style= "width:243.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Raw materials</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span> <span style= "mso-spacerun:yes">&#160;</span>$1,383</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;</span> $1,644</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:3"> <td width="67" valign="top" style= "width:.7in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="324" valign="top" style= "width:243.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Work in process</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;</span> <span style= "mso-spacerun:yes">&#160;</span>811</span></b></span> </p> </td> <td width="120" valign="top" style= 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New">&#160;</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;</span> <span style= "mso-spacerun:yes">&#160;</span>3,762</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;</span> 4,011</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:6"> <td width="67" valign="top" style= "width:.7in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="324" valign="top" style= "width:243.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Less &#8211; Progress payments</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;</span> <span style= "mso-spacerun:yes">&#160;</span><span style= "mso-spacerun:yes">&#160;</span>(2)</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;&#160;</span> <span style= "mso-spacerun:yes">&#160;</span>(3)</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:7"> <td width="67" valign="top" style= "width:.7in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="324" valign="top" style= "width:243.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;</span> <span style="mso-spacerun:yes">&#160;&#160;</span>- Reduction to LIFO cost basis</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;</span> <u><span style= "mso-spacerun:yes">&#160;</span><span style= 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New">NOTE 10.<span style="mso-spacerun:yes">&#160;</span> Long-term Debt and Credit Agreements</span></b></a> </p> <p class="MsoNormal"> <span><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> <table class="MsoNormalTable" border="1" cellspacing="0" cellpadding="0" width="667" style= "width:6.95in;border-collapse:collapse;border:none;mso-border-alt:solid windowtext .5pt; mso-yfti-tbllook:480;mso-padding-alt:0in 5.4pt 0in 5.4pt;mso-border-insideh: .5pt solid windowtext;mso-border-insidev:.5pt solid windowtext"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="427" valign="top" style= "width:4.45in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">June 30,</span></b></span> </p> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:10.0pt; font-family:Courier New">&#160;&#160;&#160;&#160;2009&#160;&#160;&#160;&#160;</span></u></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">December 31,</span></b></span> </p> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:10.0pt; font-family:Courier New">&#160;&#160;&#160;&#160;2008&#160;&#160;&#160;&#160;</span></u></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:1"> <td width="427" valign="top" style= "width:4.45in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:2"> <td width="427" valign="top" style= "width:4.45in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span> <span style= "mso-spacerun:yes">&#160;</span><span style= "mso-spacerun:yes">&#160;&#160;&#160;</span><span style= "mso-spacerun:yes">&#160;&#160;</span></span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;</span></span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:3"> <td width="427" valign="top" style= "width:4.45in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Floating rate notes due 2009</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span> $<span style="mso-spacerun:yes">&#160;&#160;</span> <span style= "mso-spacerun:yes">&#160;</span>-</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span> $<span style="mso-spacerun:yes">&#160;&#160;</span> 300</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:4"> <td width="427" valign="top" style= "width:4.45in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Floating rate notes due 2009</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;&#160;</span> 500</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;&#160;</span> 500</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:5"> <td width="427" valign="top" style= "width:4.45in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Zero coupon bonds and money multiplier notes</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:6"> <td width="427" valign="top" style= "width:4.45in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span> 13.0%-14.26%, due 2009</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;&#160;</span> 100</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;&#160;</span> 100</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:7"> <td width="427" valign="top" style= "width:4.45in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Floating rate notes due 2009-2011</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;&#160;</span> <span style= "mso-spacerun:yes">&#160;</span>-</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;&#160;</span> 193</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:8"> <td width="427" valign="top" style= "width:4.45in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">7.50% notes due 2010</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;</span> 1,000</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;</span> 1,000</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:9"> <td width="427" valign="top" style= "width:4.45in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">6-1/8% notes due 2011</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;&#160;</span> 500</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;&#160;</span> 500</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:10"> <td width="427" valign="top" style= "width:4.45in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">5.625% notes due 2012</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;&#160;</span> 400</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;&#160;</span> 400</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:11"> <td width="427" valign="top" style= "width:4.45in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">4.25% notes due 2013</span></b></span> </p> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">3.875% notes due 2014</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;&#160;</span> 600</span></b></span> </p> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;&#160;</span> 600</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;&#160;</span> 600</span></b></span> </p> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;&#160;&#160;</span> -</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:12"> <td width="427" valign="top" style= "width:4.45in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">5.40% notes due 2016</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;&#160;</span> 400</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= 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style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;&#160;</span> 400</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:14"> <td width="427" valign="top" style= "width:4.45in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">5.30% notes due 2018</span></b></span> </p> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">5.00% notes due 2019</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;&#160;</span> 900</span></b></span> </p> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;&#160;</span> 900</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;&#160;</span> 900</span></b></span> </p> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;&#160;&#160;</span> -</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:15"> <td width="427" valign="top" style= "width:4.45in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Industrial development bond obligations, floating</span></b></span> </p> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span> rate maturing at various dates through 2037</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;&#160;&#160;</span> 60</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;&#160;&#160;</span> 60</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:16"> <td width="427" valign="top" style= "width:4.45in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">6-5/8% debentures due 2028</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;&#160;</span> 216</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;&#160;</span> 216</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:17"> <td width="427" valign="top" style= "width:4.45in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">9.065% debentures due 2033</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;&#160;&#160;</span> 51</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;&#160;&#160;</span> 51</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:18"> <td width="427" valign="top" style= "width:4.45in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">5.70% notes due 2036</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;&#160;</span> 550</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;&#160;</span> 550</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:19"> <td width="427" valign="top" style= "width:4.45in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">5.70% notes due 2037</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;&#160;</span> 600</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;&#160;&#160;</span> 600</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:20"> <td width="427" valign="top" style= "width:4.45in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Other (including capitalized leases), 1.54%-11.00%</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:21"> <td width="427" valign="top" style= "width:4.45in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span> maturing at various dates through 2017</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;</span> <u>&#160;&#160;&#160;101</u></span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;</span> <u>&#160;&#160;&#160;118</u></span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:22"> <td width="427" valign="top" style= "width:4.45in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;</span> 7,878</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;</span> 6,888</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:23"> <td width="427" valign="top" style= "width:4.45in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Less current portion</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span> <u><span style= "mso-spacerun:yes">&#160;</span>(1,627</u>)</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span> <u><span style= "mso-spacerun:yes">&#160;</span>(1,023</u>)</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:24;mso-yfti-lastrow:yes"> <td width="427" valign="top" style= "width:4.45in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span> <u style="text-underline: double">$ 6,251</u></span></b></span> </p> </td> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span> <u style="text-underline: double">$ 5,865</u></span></b></span> </p> </td> </tr> </table> <p class="MsoNormal" style="mso-outline-level:1"> <span><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> <p class="MsoNormal" style="mso-outline-level:1"> <span><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">The schedule of principal payments on long term debt is as follows:</span></b></span> </p> <p class="MsoNormal"> <span><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" width="637" style= "width:477.9pt;border-collapse:collapse;mso-yfti-tbllook:480;mso-padding-alt: 0in 5.4pt 0in 5.4pt"> <tr style= "mso-yfti-irow:0;mso-yfti-firstrow:yes;page-break-inside:avoid"> <td width="433" valign="top" style= "width:324.9pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;mso-bidi-font-size: 12.0pt;font-family:Courier New;mso-bidi-font-family:Times New Roman"> &#160;</span></b></span> </p> </td> <td width="204" valign="top" style= "width:153.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:10.0pt; mso-bidi-font-size:12.0pt;font-family:Courier New;mso-bidi-font-family: Times New Roman"> At June 30, 2009</span></u></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:1;page-break-inside:avoid"> <td width="433" valign="top" style= "width:324.9pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;mso-bidi-font-size: 12.0pt;font-family:Courier New;mso-bidi-font-family:Times New Roman"> 2009</span></b></span> </p> </td> <td width="204" valign="top" style= "width:153.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;mso-bidi-font-size: 12.0pt;font-family:Courier New;mso-bidi-font-family:Times New Roman"> <span style="mso-spacerun:yes">&#160;&#160;&#160;&#160;&#160;</span> <span style="mso-spacerun:yes">&#160;</span>$ <span style= "mso-spacerun:yes">&#160;&#160;</span>622</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:2;page-break-inside:avoid"> <td width="433" valign="top" style= "width:324.9pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;mso-bidi-font-size: 12.0pt;font-family:Courier New;mso-bidi-font-family:Times New Roman"> 2010</span></b></span> </p> </td> <td width="204" valign="top" style= "width:153.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;mso-bidi-font-size: 12.0pt;font-family:Courier New;mso-bidi-font-family:Times New Roman"> <span style="mso-spacerun:yes">&#160;&#160;</span> <span style= "mso-spacerun:yes">&#160;&#160;&#160;&#160;&#160;&#160;</span>1,018</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:3;page-break-inside:avoid"> <td width="433" valign="top" style= "width:324.9pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;mso-bidi-font-size: 12.0pt;font-family:Courier New;mso-bidi-font-family:Times New Roman"> 2011</span></b></span> </p> </td> <td width="204" valign="top" style= "width:153.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;mso-bidi-font-size: 12.0pt;font-family:Courier New;mso-bidi-font-family:Times New Roman"> <span style="mso-spacerun:yes">&#160;&#160;</span> <span style= "mso-spacerun:yes">&#160;&#160;&#160;&#160;&#160;&#160;</span><span style= "mso-spacerun:yes">&#160;&#160;</span>519</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:4;page-break-inside:avoid"> <td width="433" valign="top" style= "width:324.9pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;mso-bidi-font-size: 12.0pt;font-family:Courier New;mso-bidi-font-family:Times New Roman"> 2012</span></b></span> </p> </td> <td width="204" valign="top" style= "width:153.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;mso-bidi-font-size: 12.0pt;font-family:Courier New;mso-bidi-font-family:Times New Roman"> <span style="mso-spacerun:yes">&#160;&#160;</span> <span style= "mso-spacerun:yes">&#160;&#160;&#160;&#160;&#160;&#160;</span><span style= "mso-spacerun:yes">&#160;&#160;</span>401</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:5;page-break-inside:avoid"> <td width="433" valign="top" style= "width:324.9pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;mso-bidi-font-size: 12.0pt;font-family:Courier New;mso-bidi-font-family:Times New Roman"> 2013</span></b></span> </p> </td> <td width="204" valign="top" style= "width:153.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;mso-bidi-font-size: 12.0pt;font-family:Courier New;mso-bidi-font-family:Times New Roman"> <span style="mso-spacerun:yes">&#160;</span> <span style= "mso-spacerun:yes">&#160;&#160;&#160;&#160;&#160;&#160;&#160;</span><span style= "mso-spacerun:yes">&#160;&#160;</span>605</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:6;page-break-inside:avoid"> <td width="433" valign="top" style= "width:324.9pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;mso-bidi-font-size: 12.0pt;font-family:Courier New;mso-bidi-font-family:Times New Roman"> Thereafter</span></b></span> </p> </td> <td width="204" valign="top" style= "width:153.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;mso-bidi-font-size: 12.0pt;font-family:Courier New;mso-bidi-font-family:Times New Roman"> <span style="mso-spacerun:yes">&#160;</span> <span style= "mso-spacerun:yes">&#160;&#160;&#160;&#160;&#160;&#160;</span><u>&#160;4,713</u></span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:7;page-break-inside:avoid"> <td width="433" valign="top" style= "width:324.9pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;mso-bidi-font-size: 12.0pt;font-family:Courier New;mso-bidi-font-family:Times New Roman"> &#160;</span></b></span> </p> </td> <td width="204" valign="top" style= "width:153.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;mso-bidi-font-size: 12.0pt;font-family:Courier New;mso-bidi-font-family:Times New Roman"> <span style="mso-spacerun:yes">&#160;&#160;&#160;&#160;&#160;&#160;&#160;</span> <span style= "mso-spacerun:yes">&#160;</span>7,878</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:8;page-break-inside:avoid"> <td width="433" valign="top" style= "width:324.9pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;mso-bidi-font-size: 12.0pt;font-family:Courier New;mso-bidi-font-family:Times New Roman"> Less-current portion</span></b></span> </p> </td> <td width="204" valign="top" style= "width:153.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;mso-bidi-font-size: 12.0pt;font-family:Courier New;mso-bidi-font-family:Times New Roman"> <span style="mso-spacerun:yes">&#160;&#160;&#160;&#160;&#160;&#160;&#160;</span> <u>(1,627</u>)</span></b></span> </p> </td> </tr> <tr style= 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height:11.75pt"> <p class="MsoNormal" align="center" style= "margin-left:.05in;text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt"> <p class="MsoNormal" style="margin-left:.05in"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="98" nowrap="nowrap" valign="bottom" style= "width:73.2pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt;height:11.75pt"> <p class="MsoNormal" style="margin-left:.05in"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="99" valign="top" style= "width:74.4pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt;height:11.75pt"> <p class="MsoNormal" style="margin-left:.05in"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:2;height:11.75pt"> <td width="309" nowrap="nowrap" valign="bottom" style= "width:232.1pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt"> <p class="MsoNormal" style="margin-left:.05in"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">Assets:</span></b></span> </p> </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt"> <p class="MsoNormal" style="margin-left:.05in"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="98" nowrap="nowrap" valign="bottom" style= "width:73.2pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt"> <p class="MsoNormal" style="margin-left:.05in"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="99" valign="top" style= "width:74.4pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt"> <p class="MsoNormal" style="margin-left:.05in"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:3;height:11.75pt"> <td width="309" nowrap="nowrap" valign="bottom" style= "width:232.1pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span> Foreign currency exchange contracts</span></b></span> </p> </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt"> <p class="MsoNormal" style="margin-left:.05in"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="98" nowrap="nowrap" valign="bottom" style= "width:73.2pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt"> <p class="MsoNormal" align="center" style= "margin-left:.05in;text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">$45</span></b></span> </p> </td> <td width="99" valign="bottom" style= "width:74.4pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt"> <p class="MsoNormal" align="center" style= "margin-left:.05in;text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span>$7</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:4;height:11.75pt"> <td width="309" nowrap="nowrap" valign="bottom" style= "width:232.1pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt"> <p class="MsoNormal" style="margin-left:.05in"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span>Available for sale investments</span></b></span> </p> </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt"> <p class="MsoNormal" style="margin-left:.05in"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="98" nowrap="nowrap" valign="bottom" style= "width:73.2pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt"> <p class="MsoNormal" align="center" style= "margin-left:.05in;text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span>43</span></b></span> </p> </td> <td width="99" valign="bottom" style= "width:74.4pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt"> <p class="MsoNormal" align="center" style= "margin-left:.05in;text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span>23</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:5;height:11.75pt"> <td width="309" nowrap="nowrap" valign="bottom" style= "width:232.1pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt"> <p class="MsoNormal" style="margin-left:.05in"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span>Interest rate swap agreements</span></b></span> </p> </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt"> <p class="MsoNormal" style="margin-left:.05in"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="98" nowrap="nowrap" valign="bottom" style= "width:73.2pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt"> <p class="MsoNormal" align="center" style= "margin-left:.05in;text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span>1</span></b></span> </p> </td> <td width="99" valign="top" style= "width:74.4pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt"> <p class="MsoNormal" align="center" style= "margin-left:.05in;text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">-</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:6;height:11.75pt"> <td width="309" nowrap="nowrap" valign="bottom" style= "width:232.1pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt"> <p class="MsoNormal" style="margin-left:.05in"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span>Forward commodity contracts</span></b></span> </p> </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt"> <p class="MsoNormal" style="margin-left:.05in"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="98" nowrap="nowrap" valign="bottom" style= "width:73.2pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt"> <p class="MsoNormal" align="center" style= "margin-left:.05in;text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span>-</span></b></span> </p> </td> <td width="99" valign="top" style= "width:74.4pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt"> <p class="MsoNormal" align="center" style= "margin-left:.05in;text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">-</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:7;height:11.75pt"> <td width="309" nowrap="nowrap" valign="bottom" style= "width:232.1pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt"> <p class="MsoNormal" style="margin-left:.05in"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">Liabilities:</span></b></span> </p> </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt"> <p class="MsoNormal" style="margin-left:.05in"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="98" nowrap="nowrap" valign="bottom" style= "width:73.2pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt"> <p class="MsoNormal" align="center" style= "margin-left:.05in;text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="99" valign="top" style= "width:74.4pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt"> <p class="MsoNormal" align="center" style= "margin-left:.05in;text-align:center; mso-prop-change:Honeywell 20090717T1118"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:8;height:11.75pt"> <td width="309" nowrap="nowrap" valign="bottom" style= "width:232.1pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt"> <p class="MsoNormal" style="margin-left:.05in"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span>Foreign currency exchange contracts</span></b></span> </p> </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt"> <p class="MsoNormal" style="margin-left:.05in"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="98" nowrap="nowrap" valign="bottom" style= "width:73.2pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt"> <p class="MsoNormal" align="center" style= "margin-left:.05in;text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">$35</span></b></span> </p> </td> <td width="99" valign="bottom" style= "width:74.4pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt"> <p class="MsoNormal" align="center" style= "margin-left:.05in;text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">$34</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:9;height:11.75pt"> <td width="309" nowrap="nowrap" valign="bottom" style= "width:232.1pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt"> <p class="MsoNormal" style="margin-left:.05in"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span>Interest rate swap agreements</span></b></span> </p> </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt"> <p class="MsoNormal" style="margin-left:.05in"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="98" nowrap="nowrap" valign="bottom" style= "width:73.2pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt"> <p class="MsoNormal" align="center" style= "margin-left:.05in;text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span>3</span></b></span> </p> </td> <td width="99" valign="bottom" style= "width:74.4pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt"> <p class="MsoNormal" align="center" style= "margin-left:.05in;text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span>-</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:10;height:11.75pt"> <td width="309" nowrap="nowrap" valign="bottom" style= "width:232.1pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt"> <p class="MsoNormal" style="margin-left:.05in"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span>Forward commodity contracts</span></b></span> </p> </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt"> <p class="MsoNormal" style="margin-left:.05in"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="98" nowrap="nowrap" valign="bottom" style= "width:73.2pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt"> <p class="MsoNormal" align="center" style= "margin-left:.05in;text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span>1</span></b></span> </p> </td> <td width="99" valign="bottom" style= "width:74.4pt;padding:0in 5.4pt 0in 5.4pt; height:11.75pt"> <p class="MsoNormal" align="center" style= "margin-left:.05in;text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span>4</span></b></span> </p> </td> </tr> <tr style= "mso-yfti-irow:11;mso-yfti-lastrow:yes;height:7.45pt"> <td width="309" nowrap="nowrap" valign="bottom" style= "width:232.1pt;padding:0in 5.4pt 0in 5.4pt; height:7.45pt"> <p class="MsoNormal" style="margin-left:.05in"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span></span></b></span> </p> </td> <td width="16" nowrap="nowrap" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:7.45pt"> <p class="MsoNormal" style="margin-left:.05in"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="98" nowrap="nowrap" valign="bottom" style= "width:73.2pt;padding:0in 5.4pt 0in 5.4pt; height:7.45pt"> <p class="MsoNormal" style="margin-left:.05in"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="99" valign="top" style= "width:74.4pt;padding:0in 5.4pt 0in 5.4pt; height:7.45pt"> <p class="MsoNormal" style="margin-left:.05in"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> </tr> </table> </div> <p style= "margin-top:5.95pt;margin-right:0in;margin-bottom:0in;margin-left: 0in;margin-bottom:.0001pt;text-indent:.5in"> <span><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">The foreign currency exchange contracts, interest rate swap agreements, and forward commodity contracts are valued using broker quotations, or market transactions in either the listed or over-the-counter markets. 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"text-align:right"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="1%" valign="bottom" style= "width:1.5%;padding:0in 0in 0in 0in"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="1%" valign="bottom" style= "width:1.72%;padding:0in 0in 0in 0in"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="6%" valign="bottom" style= "width:6.64%;padding:0in 0in 0in 0in"> <p class="MsoNormal" align="right" style= "text-align:right"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="1%" valign="bottom" style= "width:1.48%;padding:0in 0in 0in 0in"> <p 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2009</span></b></span> </p> </td> <td width="2%" valign="bottom" style= "width:2.5%;padding:0in 0in 0in 0in"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="19%" colspan="5" valign="bottom" style= "width:19.44%;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 0in 0in 0in"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">December 31, 2008</span></b></span> </p> </td> <td width="1%" valign="bottom" style= "width:1.48%;padding:0in 0in 0in 0in"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:2"> <td width="54%" valign="bottom" style= "width:54.5%;padding:0in 0in 0in 0in"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="2%" valign="bottom" style= "width:2.94%;padding:0in 0in 0in 0in"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="9%" colspan="2" valign="bottom" style= "width:9.3%;border:none; border-bottom:solid windowtext 1.0pt;mso-border-top-alt:solid windowtext .5pt; mso-border-top-alt:solid windowtext .5pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 0in 0in 0in"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">Carrying <br /> Value</span></b></span> </p> </td> <td width="1%" valign="bottom" style= "width:1.48%;border:none;border-top:solid windowtext 1.0pt; mso-border-top-alt:solid windowtext .5pt;padding:0in 0in 0in 0in"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="8%" colspan="2" valign="bottom" style= "width:8.36%;border-top:solid windowtext 1.0pt; border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none; mso-border-top-alt:solid windowtext .5pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 0in 0in 0in"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">Fair <br /> Value</span></b></span> </p> </td> <td width="2%" valign="bottom" style= "width:2.5%;padding:0in 0in 0in 0in"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="9%" colspan="2" valign="bottom" style= "width:9.58%;border:none; border-bottom:solid windowtext 1.0pt;mso-border-top-alt:solid windowtext .5pt; mso-border-top-alt:solid windowtext .5pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 0in 0in 0in"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">Carrying <br /> Value</span></b></span> </p> </td> <td width="1%" valign="bottom" style= "width:1.5%;padding:0in 0in 0in 0in"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="8%" colspan="2" valign="bottom" style= "width:8.36%;border-top:solid windowtext 1.0pt; border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none; mso-border-top-alt:solid windowtext .5pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 0in 0in 0in"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">Fair <br 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valign="bottom" style= "width:6.64%;border:none;border-top:solid windowtext 1.0pt; mso-border-top-alt:solid windowtext .5pt;padding:0in 0in 0in 0in"> <p class="MsoNormal" align="right" style= "text-align:right"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="2%" valign="bottom" style= "width:2.5%;padding:0in 0in 0in 0in"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="1%" valign="bottom" style= "width:1.84%;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 0in 0in 0in"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="7%" valign="bottom" style= "width:7.74%;border:none;border-top:solid windowtext 1.0pt; mso-border-top-alt:solid windowtext .5pt;padding:0in 0in 0in 0in"> <p class="MsoNormal" align="right" style= "text-align:right"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="1%" valign="bottom" style= "width:1.5%;padding:0in 0in 0in 0in"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="1%" valign="bottom" style= "width:1.72%;padding:0in 0in 0in 0in"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="6%" valign="bottom" style= "width:6.64%;padding:0in 0in 0in 0in"> <p class="MsoNormal" align="right" style= "text-align:right"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="1%" valign="bottom" style= "width:1.48%;padding:0in 0in 0in 0in"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:4"> <td width="54%" valign="bottom" style= "width:54.5%;padding:0in 0in 0in 0in"> <p class="MsoNormal" style= "margin-top:2.0pt;margin-right:0in;margin-bottom: 0in;margin-left:17.3pt;margin-bottom:.0001pt;text-indent:-8.65pt;tab-stops: dotted 4.0in"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">Long-term receivables</span></b></span> </p> </td> <td width="2%" valign="bottom" style= "width:2.94%;padding:0in 0in 0in 0in"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="1%" valign="bottom" style= "width:1.52%;padding:0in 0in 0in 0in"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">$</span></b></span> </p> </td> <td width="7%" valign="bottom" style= "width:7.78%;padding:0in 0in 0in 0in"> <p class="MsoNormal" align="right" style= "text-align:right"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">318</span></b></span> </p> </td> <td width="1%" valign="bottom" style= "width:1.48%;padding:0in 0in 0in 0in"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="1%" valign="bottom" style= "width:1.72%;padding:0in 0in 0in 0in"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">$</span></b></span> </p> </td> <td width="6%" valign="bottom" style= "width:6.64%;padding:0in 0in 0in 0in"> <p class="MsoNormal" align="right" style= "text-align:right"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">292</span></b></span> </p> </td> <td width="2%" valign="bottom" style= "width:2.5%;padding:0in 0in 0in 0in"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="1%" valign="bottom" style= "width:1.84%;padding:0in 0in 0in 0in"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">$</span></b></span> </p> </td> <td width="7%" valign="bottom" style= "width:7.74%;padding:0in 0in 0in 0in"> <p class="MsoNormal" align="right" style= "text-align:right"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">517</span></b></span> </p> </td> <td width="1%" valign="bottom" style= "width:1.5%;padding:0in 0in 0in 0in"> <p 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<p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="1%" valign="bottom" style= "width:1.72%;padding:0in 0in 0in 0in"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="6%" valign="bottom" style= "width:6.64%;padding:0in 0in 0in 0in"> <p class="MsoNormal" align="right" style= "text-align:right"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="2%" valign="bottom" style= "width:2.5%;padding:0in 0in 0in 0in"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="1%" valign="bottom" style= "width:1.84%;padding:0in 0in 0in 0in"> <p 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mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt; height:24.3pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><span style= "font-size:8.0pt;font-family:Courier New;mso-bidi-font-weight:bold"> $1</span></span> </p> </td> <td width="132" valign="bottom" style= "width:99.0pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt;height:24.3pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><span style= "font-size:8.0pt;font-family:Courier New;mso-bidi-font-weight:bold"> $5</span></span> </p> </td> </tr> </table> <p class="MsoNormal" style= "margin-right:.9pt;mso-layout-grid-align:none; text-autospace:none;mso-prop-change:Honeywell 20090717T1145"> <span><b style="mso-bidi-font-weight: normal"><span style= "font-size:10.0pt;font-family:Courier New">&#160;</span></b></span> </p> <table class="MsoNormalTable" border="1" cellspacing="0" cellpadding="0" width="624" style= "width:6.5in;margin-left:5.4pt;border-collapse:collapse;border:none; mso-border-bottom-alt:solid windowtext .5pt;mso-padding-alt:0in 5.4pt 0in 5.4pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes;height:.25in"> <td width="228" rowspan="2" valign="bottom" style= "width:171.0pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:.25in"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">Designated as Hedging Instruments</span></b></span> </p> </td> <td width="396" nowrap="nowrap" colspan="3" valign="bottom" style= "width:297.0pt;border: none;border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:.25in"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">Liability Derivatives</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:1;height:41.25pt"> <td width="156" valign="bottom" style= "width:117.0pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-top-alt:solid windowtext .5pt;mso-border-top-alt: solid windowtext .5pt;mso-border-bottom-alt:solid windowtext .5pt;padding: 0in 5.4pt 0in 5.4pt;height:41.25pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">Balance Sheet Location</span></b></span> </p> </td> <td width="108" nowrap="nowrap" valign="bottom" style= "width:81.0pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-top-alt:solid windowtext .5pt; mso-border-top-alt:solid windowtext .5pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:41.25pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">June 30, 2009</span></b></span> </p> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">Fair Value</span></b></span> </p> </td> <td width="132" valign="bottom" style= "width:99.0pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-top-alt:solid windowtext .5pt;mso-border-top-alt: solid windowtext .5pt;mso-border-bottom-alt:solid windowtext .5pt;padding: 0in 5.4pt 0in 5.4pt;height:41.25pt"> <p class="MsoNormal" align="center" style= "margin-left:-5.4pt;text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">December 31, 2008 Fair Value</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:2;height:13.5pt"> <td width="228" nowrap="nowrap" valign="bottom" style= "width:171.0pt;border:none; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><i><span style= "font-size:8.0pt;font-family:Courier New;mso-bidi-font-weight:bold"> &#160;</span></i></span> </p> <p class="MsoNormal" align="center" style= "text-align:center"> <span><i><span style= "font-size:8.0pt;font-family:Courier New;mso-bidi-font-weight:bold"> Foreign currency exchange contracts</span></i></span> </p> </td> <td width="156" nowrap="nowrap" valign="bottom" style= "width:117.0pt;border:none; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><span style= "font-size:8.0pt;font-family:Courier New;mso-bidi-font-weight:bold"> Accrued liabilities</span></span> </p> </td> <td width="108" nowrap="nowrap" valign="bottom" style= "width:81.0pt;border:none; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><span style= "font-size:8.0pt;font-family:Courier New;mso-bidi-font-weight:bold"> $32</span></span> </p> </td> <td width="132" valign="bottom" style= "width:99.0pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><span style= "font-size:8.0pt;font-family:Courier New;mso-bidi-font-weight:bold"> $19</span></span> </p> </td> </tr> <tr style="mso-yfti-irow:3;height:23.4pt"> <td width="228" nowrap="nowrap" valign="bottom" style= "width:171.0pt;border:none; padding:0in 5.4pt 0in 5.4pt;height:23.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><i><span style= "font-size:8.0pt;font-family:Courier New;mso-bidi-font-weight:bold"> Interest rate swap agreements</span></i></span> </p> </td> <td width="156" nowrap="nowrap" valign="bottom" style= "width:117.0pt;border:none; padding:0in 5.4pt 0in 5.4pt;height:23.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><span style= "font-size:8.0pt;font-family:Courier New;mso-bidi-font-weight:bold"> Accrued liabilities</span></span> </p> </td> <td width="108" nowrap="nowrap" valign="bottom" style= "width:81.0pt;border:none; padding:0in 5.4pt 0in 5.4pt;height:23.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><span style= "font-size:8.0pt;font-family:Courier New;mso-bidi-font-weight:bold"> <span style="mso-spacerun:yes">&#160;</span><span style= "mso-spacerun:yes">&#160;</span>3</span></span> </p> </td> <td width="132" valign="bottom" style= "width:99.0pt;border:none;padding:0in 5.4pt 0in 5.4pt; height:23.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><span style= "font-size:8.0pt;font-family:Courier New;mso-bidi-font-weight:bold"> -</span></span> </p> </td> </tr> <tr style="mso-yfti-irow:4;height:23.4pt"> <td width="228" nowrap="nowrap" valign="bottom" style= "width:171.0pt;border:none; padding:0in 5.4pt 0in 5.4pt;height:23.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><i><span style= "font-size:8.0pt;font-family:Courier New;mso-bidi-font-weight:bold"> Commodity contracts</span></i></span> </p> </td> <td width="156" nowrap="nowrap" valign="bottom" style= "width:117.0pt;border:none; padding:0in 5.4pt 0in 5.4pt;height:23.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><span style= "font-size:8.0pt;font-family:Courier New;mso-bidi-font-weight:bold"> Accrued liabilities</span></span> </p> </td> <td width="108" nowrap="nowrap" valign="bottom" style= "width:81.0pt;border:none; padding:0in 5.4pt 0in 5.4pt;height:23.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><span style= "font-size:8.0pt;font-family:Courier New;mso-bidi-font-weight:bold"> <span style="mso-spacerun:yes">&#160;</span>1</span></span> </p> </td> <td width="132" valign="bottom" style= "width:99.0pt;border:none;padding:0in 5.4pt 0in 5.4pt; height:23.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><span style= "font-size:8.0pt;font-family:Courier New;mso-bidi-font-weight:bold"> <span style="mso-spacerun:yes">&#160;</span>4</span></span> </p> </td> </tr> <tr style="mso-yfti-irow:5;height:13.5pt"> <td width="228" nowrap="nowrap" valign="bottom" style= "width:171.0pt;border:none; padding:0in 5.4pt 0in 5.4pt;height:13.5pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><span style= "font-size:8.0pt;font-family:Courier New;mso-bidi-font-weight:bold"> &#160;</span></span> </p> </td> <td width="156" nowrap="nowrap" valign="bottom" style= "width:117.0pt;border:none; padding:0in 5.4pt 0in 5.4pt;height:13.5pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><span style= "font-size:8.0pt;font-family:Courier New;mso-bidi-font-weight:bold"> &#160;</span></span> </p> </td> <td width="240" nowrap="nowrap" colspan="2" valign="bottom" style= "width:2.5in;border:none; padding:0in 5.4pt 0in 5.4pt;height:13.5pt"> <p class="MsoNormal"> <span><span style= "font-size:8.0pt;font-family:Courier New;mso-bidi-font-weight:bold"> &#160;</span></span> </p> </td> </tr> <tr style="mso-yfti-irow:6;height:40.5pt"> <td width="228" valign="bottom" style= "width:171.0pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:40.5pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">Not Designated as Hedging Instruments</span></b></span> </p> </td> <td width="156" nowrap="nowrap" valign="bottom" style= "width:117.0pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:40.5pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">Balance Sheet Location</span></b></span> </p> </td> <td width="108" nowrap="nowrap" valign="bottom" style= "width:81.0pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:40.5pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">June 30, 2009</span></b></span> </p> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">Fair Value</span></b></span> </p> </td> <td width="132" valign="bottom" style= "width:99.0pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:40.5pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">December 31, 2008 Fair Value</span></b></span> </p> </td> </tr> <tr style= "mso-yfti-irow:7;mso-yfti-lastrow:yes;height:13.5pt"> <td width="228" nowrap="nowrap" valign="bottom" style= "width:171.0pt;border:none; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><i><span style= "font-size:8.0pt;font-family:Courier New;mso-bidi-font-weight:bold"> Foreign currency exchange contracts</span></i></span> </p> </td> <td width="156" nowrap="nowrap" valign="bottom" style= "width:117.0pt;border:none; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><span style= "font-size:8.0pt;font-family:Courier New;mso-bidi-font-weight:bold"> Accrued liabilities</span></span> </p> </td> <td width="108" nowrap="nowrap" valign="bottom" style= "width:81.0pt;border:none; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><span style= "font-size:8.0pt;font-family:Courier New;mso-bidi-font-weight:bold"> $3</span></span> </p> </td> <td width="132" valign="bottom" style= "width:99.0pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><span style= "font-size:8.0pt;font-family:Courier New;mso-bidi-font-weight:bold"> $14</span></span> </p> </td> </tr> </table> <p class="MsoNormal" style= "margin-right:.9pt;mso-layout-grid-align:none; text-autospace:none"> <span><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> <p class="MsoNormal" style= "margin-right:.9pt;text-indent:.5in;mso-layout-grid-align: none;text-autospace:none"> <span><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> <div align="center"> <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" width="654" style= "width:490.6pt;margin-left:5.05pt;border-collapse:collapse;mso-padding-alt: 0in 5.4pt 0in 5.4pt"> <tr style= "mso-yfti-irow:0;mso-yfti-firstrow:yes;height:57.0pt"> <td width="110" rowspan="2" valign="bottom" style= "width:82.6pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:57.0pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">Derivatives in Cash Flow Hedge Relationships</span></b></span> </p> </td> <td width="216" colspan="2" valign="bottom" style= "width:2.25in;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:57.0pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">Gain or (Loss) Recognized in OCI (Effective Portion)</span></b></span> </p> </td> <td width="120" rowspan="2" valign="bottom" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt; height:57.0pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">Location of Gain or (Loss) Reclassified from AOCI into Income (Effective Portion)</span></b></span> </p> </td> <td width="208" colspan="2" valign="bottom" style= "width:156.0pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:57.0pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">Gain or (Loss) Reclassified from AOCI into Income</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:1;height:12.75pt"> <td width="108" nowrap="nowrap" valign="bottom" style= "width:81.0pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-top-alt:solid windowtext .5pt; mso-border-top-alt:solid windowtext .5pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:12.75pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">Three Months Ended</span></b></span> </p> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">June 30, 2009</span></b></span> </p> </td> <td width="108" valign="bottom" style= "width:81.0pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-top-alt:solid windowtext .5pt;mso-border-top-alt: solid windowtext .5pt;mso-border-bottom-alt:solid windowtext .5pt;padding: 0in 5.4pt 0in 5.4pt;height:12.75pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">Six Months Ended</span></b></span> </p> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">June 30, 2009</span></b></span> </p> </td> <td width="108" valign="bottom" style= "width:81.0pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-top-alt:solid windowtext .5pt;mso-border-top-alt: solid windowtext .5pt;mso-border-bottom-alt:solid windowtext .5pt;padding: 0in 5.4pt 0in 5.4pt;height:12.75pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">Three Months Ended</span></b></span> </p> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">June 30, 2009</span></b></span> </p> </td> <td width="100" nowrap="nowrap" valign="bottom" style= "width:75.0pt;border-top:solid windowtext 1.0pt; border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none; mso-border-top-alt:solid windowtext .5pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:12.75pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">Six Months Ended</span></b></span> </p> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">June 30, 2009</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:2;height:12.75pt"> <td width="110" nowrap="nowrap" rowspan="3" valign= "bottom" style= "width:82.6pt;border:none; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><i style= "mso-bidi-font-style:normal"><span style= "font-size:8.0pt;font-family: Courier New">Foreign currency exchange contracts</span></i></span> </p> </td> <td width="108" nowrap="nowrap" rowspan="3" valign= "bottom" style= "width:81.0pt;border:none; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><span style= "font-size:8.0pt;font-family:Courier New">$33</span></span> </p> </td> <td width="108" rowspan="3" valign="bottom" style= "width:81.0pt;border:none; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><span style= "font-size:8.0pt;font-family:Courier New">&#160;</span></span> </p> <p class="MsoNormal" align="center" style= "text-align:center"> <span><span style= "font-size:8.0pt;font-family:Courier New">&#160;</span></span> </p> <p class="MsoNormal" align="center" style= "text-align:center"> <span><span style= "font-size:8.0pt;font-family:Courier New">$9</span></span> </p> </td> <td width="120" nowrap="nowrap" valign="bottom" style= "width:1.25in;border:none; border-top:solid windowtext 1.0pt;mso-border-top-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:12.75pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><span style= "font-size:8.0pt;font-family:Courier New">Product sales</span></span> </p> </td> <td width="108" valign="bottom" style= "width:81.0pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><span style= "font-size:8.0pt;font-family:Courier New">$12</span></span> </p> </td> <td width="100" nowrap="nowrap" valign="bottom" style= "width:75.0pt;border:none; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><span style= "font-size:8.0pt;font-family:Courier New">$10</span></span> </p> </td> </tr> <tr style="mso-yfti-irow:3;height:12.75pt"> <td width="120" nowrap="nowrap" valign="bottom" style= "width:1.25in;padding:0in 5.4pt 0in 5.4pt; height:12.75pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><span style= "font-size:8.0pt;font-family:Courier New">Cost of products sold</span></span> </p> </td> <td width="108" valign="bottom" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt; 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padding:0in 5.4pt 0in 5.4pt;height:54.75pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">Location of Gain or (Loss) Recognized in Income on Derivative</span></b></span> </p> </td> <td width="253" colspan="2" valign="bottom" style= "width:189.6pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:54.75pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b><span style= "font-size:8.0pt;font-family:Courier New">Gain or (Loss) Recognized in Income on Derivative</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:1;height:12.75pt"> <td width="214" nowrap="nowrap" valign="bottom" style= "width:160.8pt;border:none; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="168" nowrap="nowrap" valign="bottom" style= "width:1.75in;border:none; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="132" nowrap="nowrap" valign="bottom" style= "width:99.0pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-top-alt:solid windowtext .5pt; mso-border-top-alt:solid windowtext .5pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:12.75pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">Three Months Ended June 30, 2009</span></b></span> </p> </td> <td width="121" valign="bottom" style= "width:90.6pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-top-alt:solid windowtext .5pt;mso-border-top-alt: solid windowtext .5pt;mso-border-bottom-alt:solid windowtext .5pt;padding: 0in 5.4pt 0in 5.4pt;height:12.75pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">Six Months Ended June 30, 2009</span></b></span> </p> </td> </tr> <tr style= "mso-yfti-irow:2;mso-yfti-lastrow:yes;height:12.75pt"> <td width="214" nowrap="nowrap" valign="bottom" style= "width:160.8pt;padding:0in 5.4pt 0in 5.4pt; 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No authoritative reference available. false 29 5 us-gaap_ProceedsFromSaleMaturityAndCollectionsOfInvestments us-gaap true debit duration monetary No definition available. false false false false false false false false false 1 false true 1000000 1 false false 2 false true 14000000 14 false false No definition available. No authoritative reference available. false 30 5 us-gaap_PaymentsToAcquireBusinessesAndInterestInAffiliates us-gaap true credit duration monetary No definition available. false false false false false false false false false 1 false true -28000000 -28 false false 2 false true -1308000000 -1308 false false No definition available. No authoritative reference available. false 31 5 us-gaap_PaymentsForProceedsFromOtherInvestingActivities us-gaap true credit duration monetary No definition available. false false false false false false false false false 1 false true -48000000 -48 false false 2 false true 7000000 7 false false No definition available. No authoritative reference available. true 32 5 us-gaap_NetCashProvidedByUsedInInvestingActivities us-gaap true debit duration monetary No definition available. false false false false false false false false false 1 false true -284000000 -284 false false 2 false true -1576000000 -1576 false false No definition available. No authoritative reference available. true 33 4 us-gaap_NetCashProvidedByUsedInFinancingActivitiesAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false No definition available. false 34 5 hon_NetDecreaseInCommercialPaper hon false debit duration monetary Net decrease in commercial paper false false false false false false false false false 1 false true -1033000000 -1033 false false 2 false true -230000000 -230 false false Net decrease in commercial paper No authoritative reference available. false 35 5 hon_NetDecreaseIncreaseInShortTermBorrowings hon false debit duration monetary Net increase or decrease in short-term borrowings false false false false false false false false false 1 false true -193000000 -193 false false 2 false true 21000000 21 false false Net increase or decrease in short-term borrowings No authoritative reference available. false 36 5 us-gaap_ProceedsFromIssuanceOrSaleOfEquity us-gaap true debit duration monetary No definition available. false false false false false false false false false 1 false true 9000000 9 false false 2 false true 126000000 126 false false No definition available. No authoritative reference available. false 37 5 us-gaap_ProceedsFromIssuanceOfLongTermDebtAndCapitalSecuritiesNet us-gaap true debit duration monetary No definition available. false false false false false false false false false 1 false true 1488000000 1488 false false 2 false true 1487000000 1487 false false No definition available. No authoritative reference available. false 38 5 us-gaap_RepaymentsOfLongTermDebtAndCapitalSecurities us-gaap true credit duration monetary No definition available. false false false false false false false false false 1 false true -493000000 -493 false false 2 false true -425000000 -425 false false No definition available. No authoritative reference available. false 39 5 us-gaap_ExcessTaxBenefitFromShareBasedCompensationFinancingActivities us-gaap true debit duration monetary No definition available. false false false false false false false false false 1 false true 0 0 false false 2 false true 19000000 19 false false No definition available. No authoritative reference available. false 40 5 us-gaap_PaymentsForRepurchaseOfCommonStock us-gaap true credit duration monetary No definition available. false false false false false false false false false 1 false true 0 0 false false 2 false true -441000000 -441 false false No definition available. No authoritative reference available. false 41 5 us-gaap_PaymentsOfDividendsCommonStock us-gaap true credit duration monetary No definition available. false false false false false false false false false 1 false true -452000000 -452 false false 2 false true -409000000 -409 false false No definition available. No authoritative reference available. true 42 5 us-gaap_NetCashProvidedByUsedInFinancingActivities us-gaap true debit duration monetary No definition available. false false false false false false false false false 1 false true -674000000 -674 false false 2 false true 148000000 148 false false No definition available. No authoritative reference available. true 43 4 us-gaap_EffectOfExchangeRateOnCashAndCashEquivalents us-gaap true debit duration monetary No definition available. false false false false false false false false false 1 false true 32000000 32 false false 2 false true 40000000 40 false false No definition available. No authoritative reference available. true 44 4 us-gaap_CashAndCashEquivalentsPeriodIncreaseDecrease us-gaap true na duration monetary No definition available. false false false false false false false false false 1 false true 541000000 541 false false 2 false true 375000000 375 false false No definition available. No authoritative reference available. false 45 3 us-gaap_CashAndCashEquivalentsAtCarryingValue us-gaap true debit instant monetary No definition available. false false false false false false true false false 1 false true 2065000000 2065 false false 2 false true 1829000000 1829 false false No definition available. No authoritative reference available. false 46 3 us-gaap_CashAndCashEquivalentsAtCarryingValue us-gaap true debit instant monetary No definition available. false false false false false false false true false 1 true true 2606000000 2606 false false 2 true true 2204000000 2204 false false No definition available. No authoritative reference available. false false 2 40 false Millions UnKnown UnKnown false true XML 18 R16.xml IDEA: Comprehensive Income(Loss) 1.0.0.3 false Comprehensive Income(Loss) false 1 $ false false USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 USDEPS Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 2 0 hon_ComprehensiveIncomeLossAbstract hon false na duration string Comprehensive Income/(Loss) false false false false false true false false false 1 false false 0 0 false false Comprehensive Income/(Loss) false 3 1 us-gaap_ComprehensiveIncomeNoteTextBlock us-gaap true na duration string No definition available. false false false false false false false false false 1 false false 0 0 <div> <p class="MsoNormal" style="mso-outline-level:1"> <a name="_AUC27bffd93df1d44d1886da3995ebcbb4e"><b style= "mso-bidi-font-weight: normal"><span style= "font-size:10.0pt;font-family:Courier New">NOTE 12. Comprehensive Income/(Loss)</span></b></a> </p> <p class="MsoNormal"> <span><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> <p class="MsoNormal" style="mso-outline-level:1"> <span><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Comprehensive income/(loss) consists of the following:</span></b></span> </p> <p class="MsoNormal"> <span><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" width="667" style= "border-collapse:collapse;mso-table-layout-alt:fixed;mso-yfti-tbllook: 480;mso-padding-alt:0in 5.4pt 0in 5.4pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="307" valign="top" style= "width:3.2in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="168" colspan="2" valign="top" style= "width:1.75in;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Three Months Ended</span></b></span> </p> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;&#160;&#160;&#160;June 30, &#160;&#160;&#160;&#160;&#160;</span></b></span> </p> </td> <td width="17" valign="top" style= "width:12.9pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="175" colspan="2" valign="top" style= "width:131.1pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Six Months Ended</span></b></span> </p> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;&#160;&#160;&#160;June 30, &#160;&#160;&#160;&#160;&#160;</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:1"> <td width="307" valign="top" style= "width:3.2in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="72" valign="top" style= "width:.75in;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:10.0pt; font-family:Courier New">&#160;2009&#160;</span></u></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;border:none;border-top:solid windowtext 1.0pt; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:10.0pt; font-family:Courier New">&#160;2008&#160;</span></u></b></span> </p> </td> <td width="17" valign="top" style= "width:12.9pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="91" valign="top" style= "width:68.1pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:10.0pt; font-family:Courier New">&#160;2009&#160;</span></u></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;border:none;border-top:solid windowtext 1.0pt; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:10.0pt; font-family:Courier New">&#160;2008&#160;</span></u></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:2;height:15.3pt"> <td width="307" valign="top" style= "width:3.2in;padding:0in 5.4pt 0in 5.4pt; height:15.3pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt; height:15.3pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt; height:15.3pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="17" valign="top" style= "width:12.9pt;padding:0in 5.4pt 0in 5.4pt; height:15.3pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="91" valign="top" style= "width:68.1pt;padding:0in 5.4pt 0in 5.4pt; height:15.3pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt; height:15.3pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:3"> <td width="307" valign="top" style= "width:3.2in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Net income</span></b></span> </p> </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span>$460</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;</span> $728</span></b></span> </p> </td> <td width="17" valign="top" style= "width:12.9pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span></span></b></span> </p> </td> <td width="91" valign="top" style= "width:68.1pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">$<span style="mso-spacerun:yes">&#160;</span> 859</span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">$1,375</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:4"> <td width="307" valign="top" style= "width:3.2in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="17" valign="top" style= "width:12.9pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="91" valign="top" style= "width:68.1pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:5"> <td width="307" valign="top" style= "width:3.2in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Foreign exchange translation</span></b></span> </p> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span> adjustments</span></b></span> </p> </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span><span style= "mso-spacerun:yes">&#160;</span>389</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;</span> <span style= "mso-spacerun:yes">&#160;</span>(67)</span></b></span> </p> </td> <td width="17" valign="top" style= "width:12.9pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="91" valign="top" style= "width:68.1pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span><span style="mso-spacerun:yes">&#160;</span> 139</span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;</span> 177</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:6"> <td width="307" valign="top" style= "width:3.2in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Pension and postretirement</span></b></span> </p> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span> benefit adjustments</span></b></span> </p> </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;</span> 57</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;</span> <span style= "mso-spacerun:yes">&#160;</span>12</span></b></span> </p> </td> <td width="17" valign="top" style= "width:12.9pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="91" valign="top" style= "width:68.1pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;</span> <span style= "mso-spacerun:yes">&#160;</span>83</span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;</span> 25</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:7"> <td width="307" valign="top" style= "width:3.2in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Change in fair value of</span></b></span> </p> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span> effective cash flow hedges</span></b></span> </p> </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:10.0pt; font-family:Courier New"><span style="text-decoration:none"> &#160;</span></span></u></b></span> </p> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span> <span style= "mso-spacerun:yes">&#160;</span>46</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:10.0pt; font-family:Courier New"><span style="text-decoration:none"> &#160;</span></span></u></b></span> </p> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;</span> <span style= "mso-spacerun:yes">&#160;</span>(4)</span></b></span> </p> </td> <td width="17" valign="top" style= "width:12.9pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:10.0pt; font-family:Courier New"><span style="text-decoration:none"> &#160;</span></span></u></b></span> </p> </td> <td width="91" valign="top" style= "width:68.1pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:10.0pt; font-family:Courier New"><span style="text-decoration:none"> &#160;</span></span></u></b></span> </p> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span> <span style= "mso-spacerun:yes">&#160;&#160;</span>24</span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:10.0pt; font-family:Courier New"><span style="text-decoration:none"> &#160;</span></span></u></b></span> </p> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;&#160;</span> (2)</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:8"> <td width="307" valign="top" style= "width:3.2in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Change in unrealized losses on</span></b></span> </p> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span> available for sale investments (1)</span></b></span> </p> </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:10.0pt; font-family:Courier New"><span style="text-decoration:none"> &#160;</span></span></u></b></span> </p> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span> <u><span style= "mso-spacerun:yes">&#160;</span>45</u></span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:10.0pt; font-family:Courier New"><span style="text-decoration:none"> &#160;</span></span></u></b></span> </p> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;</span> <u><span style= "mso-spacerun:yes">&#160;</span><span style= "mso-spacerun:yes">&#160;</span><span style= "mso-spacerun:yes">&#160;</span>-</u></span></b></span> </p> </td> <td width="17" valign="top" style= "width:12.9pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:10.0pt; font-family:Courier New"><span style="text-decoration:none"> &#160;</span></span></u></b></span> </p> </td> <td width="91" valign="top" style= "width:68.1pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:10.0pt; font-family:Courier New"><span style="text-decoration:none"> &#160;</span></span></u></b></span> </p> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span> <u><span style= "mso-spacerun:yes">&#160;</span><span style= "mso-spacerun:yes">&#160;</span>51</u></span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:10.0pt; font-family:Courier New"><span style="text-decoration:none"> &#160;</span></span></u></b></span> </p> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;</span> <u><span style= "mso-spacerun:yes">&#160;&#160;</span>-</u></span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:9"> <td width="307" valign="top" style= "width:3.2in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span> 997</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;</span> <span style= "mso-spacerun:yes">&#160;</span>669</span></b></span> </p> </td> <td width="17" valign="top" style= "width:12.9pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:10.0pt; font-family:Courier New"><span style="text-decoration:none"> &#160;</span></span></u></b></span> </p> </td> <td width="91" valign="top" style= "width:68.1pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span>1,156</span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span>1,575</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:10"> <td width="307" valign="top" style= "width:3.2in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Comprehensive Income attributable to noncontrolling interest(2)</span></b></span> </p> </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:10.0pt; font-family:Courier New"><span style="text-decoration:none"> &#160;</span></span></u></b></span> </p> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span> <u>&#160;(9)</u></span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:10.0pt; font-family:Courier New"><span style="text-decoration:none"> &#160;</span></span></u></b></span> </p> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;</span> <u><span style= "mso-spacerun:yes">&#160;</span><span style= "mso-spacerun:yes">&#160;</span>(5)</u></span></b></span> </p> </td> <td width="17" valign="top" style= "width:12.9pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="91" valign="top" style= "width:68.1pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:10.0pt; font-family:Courier New"><span style="text-decoration:none"> &#160;</span></span></u></b></span> </p> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span> <span style= "mso-spacerun:yes">&#160;</span><u>(11)</u></span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:10.0pt; font-family:Courier New"><span style="text-decoration:none"> &#160;</span></span></u></b></span> </p> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;&#160;</span> <u><span style= "mso-spacerun:yes">&#160;</span>(9)</u></span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:11"> <td width="307" valign="top" style= "width:3.2in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="17" valign="top" style= "width:12.9pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="91" valign="top" style= "width:68.1pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:12;mso-yfti-lastrow:yes"> <td width="307" valign="top" style= "width:3.2in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Comprehensive Income/(Loss) attributable to Honeywell</span></b></span> </p> </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style="mso-bidi-font-weight:normal"><u style= "text-underline:double"><span style= "font-size:10.0pt;font-family:Courier New">$988</span></u></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style="mso-bidi-font-weight:normal"><u style= "text-underline:double"><span style= "font-size:10.0pt;font-family:Courier New">$664</span></u></b></span> </p> </td> <td width="17" valign="top" style= "width:12.9pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="91" valign="top" style= "width:68.1pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style="mso-bidi-font-weight:normal"><u style= "text-underline:double"><span style= "font-size:10.0pt;font-family:Courier New">$1,145</span></u></b></span> </p> </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style="mso-bidi-font-weight:normal"><u style= "text-underline:double"><span style= "font-size:10.0pt;font-family:Courier New"><span style= "mso-spacerun:yes">&#160;</span>$1,566</span></u></b></span> </p> </td> </tr> </table> <p class="MsoNormal"> <span><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> <p class="MsoNormal" style= "margin-left:42.0pt;text-indent:-24.0pt;mso-list:l0 level1 lfo1; tab-stops:list 42.0pt"> <span><![if !supportLists]><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New;mso-fareast-font-family:Courier New"><span style="mso-list: Ignore">(1)<span style="font:7.0pt Times New Roman">&#160;</span></span></span></b> <![endif]><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Includes reclassification adjustment for losses included in net income.</span></b></span> </p> <p class="MsoNormal" style="margin-left:.25in"> <span><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> <p class="MsoNormal" style= "margin-left:42.0pt;text-indent:-24.0pt;mso-list:l0 level1 lfo1; tab-stops:list 42.0pt"> <span><![if !supportLists]><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New;mso-fareast-font-family:Courier New"><span style="mso-list: Ignore">(2)<span style="font:7.0pt Times New Roman">&#160;</span></span></span></b> <![endif]><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Comprehensive Income/(Loss) attributable to noncontrolling interest consisted predominately of net income.</span></b></span> </p> <p class="MsoNormal" style="margin-left:.25in"> <span><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> <p class="MsoNormal"> <span><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> <p class="MsoNormal"> <span><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Changes in Noncontrolling interest consist of the following:</span></b></span> </p> <p class="MsoNormal"> <span><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New;color:black">&#160;</span></b></span> </p> <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" width="415" style= "width:311.4pt;border-collapse:collapse;mso-padding-alt:0in 5.4pt 0in 5.4pt"> <tr style= "mso-yfti-irow:0;mso-yfti-firstrow:yes;height:12.75pt"> <td width="366" nowrap="nowrap" valign="bottom" style= "width:274.45pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">December 31, 2008</span></b></span> </p> </td> <td width="49" nowrap="nowrap" valign="bottom" style= "width:36.95pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt"> <p class="MsoNormal" style="text-align:justify"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">$82</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:1;height:12.75pt"> <td width="366" nowrap="nowrap" valign="bottom" style= "width:274.45pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span lang="IT" style= "font-size:10.0pt; font-family:Courier New;mso-ansi-language:IT" xml:lang="IT">Comprehensive Income/(Loss)attributable to noncontrolling interest</span></b></span> </p> </td> <td width="49" nowrap="nowrap" valign="bottom" style= "width:36.95pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt"> <p class="MsoNormal" style="text-align:justify"> <span><b style= "mso-bidi-font-weight:normal"><span lang="IT" style= "font-size:10.0pt; font-family:Courier New;mso-ansi-language:IT" xml:lang="IT"><span style= "mso-spacerun:yes">&#160;</span>1</span></b></span><span><b style="mso-bidi-font-weight:normal"><span style="font-size:10.0pt;font-family:Courier New">1</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:2;height:13.5pt"> <td width="366" nowrap="nowrap" valign="bottom" style= "width:274.45pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Capital contribution by noncontrolling shareholders</span></b></span> </p> </td> <td width="49" nowrap="nowrap" valign="bottom" style= "width:36.95pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt"> <p class="MsoNormal" style="text-align:justify"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span> 4</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:3;height:13.5pt"> <td width="366" nowrap="nowrap" valign="bottom" style= "width:274.45pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Dividends paid</span></b></span> </p> </td> <td width="49" nowrap="nowrap" valign="bottom" style= "width:36.95pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:10.0pt; font-family:Courier New">&#160;(3)</span></u></b></span> </p> </td> </tr> <tr style= "mso-yfti-irow:4;mso-yfti-lastrow:yes;height:13.5pt"> <td width="366" nowrap="nowrap" valign="bottom" style= "width:274.45pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">June 30, 2009</span></b></span> </p> </td> <td width="49" nowrap="nowrap" valign="bottom" style= "width:36.95pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt"> <p class="MsoNormal" style="text-align:justify"> <span><b style="mso-bidi-font-weight:normal"><u style= "text-underline:double"><span style= "font-size:10.0pt;font-family:Courier New">$94</span></u></b></span> </p> </td> </tr> </table> <p class="MsoNormal"> <span><b style="mso-bidi-font-weight:normal"><span style= 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align="center" style= "margin-left:-5.4pt;text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:10.0pt; font-family:Courier New"><span style="text-decoration:none"> &#160;</span></span></u></b></span> </p> </td> <td width="76" valign="top" style= "width:56.75pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "margin-left:-5.4pt;text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:10.0pt; font-family:Courier New">2009</span></u></b></span> </p> </td> <td width="92" valign="top" style= "width:69.25pt;border:none;border-top:solid windowtext 1.0pt; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "margin-left:-5.4pt;text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:10.0pt; font-family:Courier New">2008</span></u></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:3"> <td width="41" valign="top" style= "width:30.6pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" style="margin-left:-5.4pt"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="240" valign="top" style= "width:180.1pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" style="margin-left:-5.4pt"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Equity (income)/loss of</span></b></span> </p> <p class="MsoNormal" style="margin-left:-5.4pt"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span> affiliated companies</span></b></span> </p> </td> <td width="81" valign="top" style= "width:60.75pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= 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style= "width:30.6pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" style="margin-left:-5.4pt"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="240" valign="top" style= "width:180.1pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" style="margin-left:-5.4pt"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Gain on sale of non-strategic</span></b></span> </p> <p class="MsoNormal" style="margin-left:-5.4pt"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New"><span style="mso-spacerun:yes"> &#160;</span> Businesses and assets</span></b></span> </p> </td> <td width="81" valign="top" style= "width:60.75pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:9.0pt;font-family: Courier 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No authoritative reference available. false false 1 2 false UnKnown UnKnown UnKnown false true XML 20 R6.xml IDEA: Recent Accounting Pronouncements 1.0.0.3 false Recent Accounting Pronouncements false 1 $ false false USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 USDEPS Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 2 0 hon_RecentAccountingPronouncementsAbstract hon false na duration string Recent Accounting Pronouncements false false false false false true false false false 1 false false 0 0 false false Recent Accounting Pronouncements false 3 1 us-gaap_ScheduleOfNewAccountingPronouncementsAndChangesInAccountingPrinciplesTextBlock us-gaap true na duration string No definition available. false false false false false false false false false 1 false false 0 0 <div> <p class="MsoNormal" style="mso-outline-level:1"> <a name="_AUC28c2ce49ec0e423f803fbdc5de02ab66"><b style= "mso-bidi-font-weight: normal"><span style= "font-size:10.0pt;font-family:Courier New">NOTE 2. <span style="mso-spacerun:yes">&#160;</span>Recent Accounting Pronouncements</span></b></a> </p> <p class="MsoNormal"> <span><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> <p style= "margin-top:5.95pt;margin-right:0in;margin-bottom:0in;margin-left: 0in;margin-bottom:.0001pt;text-indent:.5in"> <span><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">Recent Accounting Pronouncements &#8211; In September 2006, the FASB issued Statement of Financial Accounting Standard (&#8220;SFAS&#8221;) No. 157, &#8220;Fair Value Measurements&#8221; (SFAS No. 157). SFAS No. 157 establishes a common definition for fair value to be applied to U.S. GAAP requiring use of fair value, establishes a framework for measuring fair value, and expands disclosure about such fair value measurements. SFAS No. 157 is effective for financial assets and financial liabilities for fiscal years beginning after November 15, 2007. Issued in February 2008, FSP 157-1 &#8220;Application of FASB Statement No. 157 to FASB Statement No. 13 and Other Accounting Pronouncements That Address Fair Value Measurements for Purposes of Lease Classification or Measurement under Statement 13&#8221; removed leasing transactions accounted for under Statement 13 and related guidance from the scope of SFAS No. 157. FSP 157-2 &#8220;Partial Deferral of the Effective Date of Statement 157&#8221; (FSP 157-2), deferred the effective date of SFAS No. 157 for all nonfinancial assets and nonfinancial liabilities to fiscal years beginning after November 15, 2008.</span></b></span> </p> <p class="MsoNormal" style="text-indent:.5in"> <span><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New;color:black">&#160;</span></b></span> </p> <p class="MsoNormal" style="text-indent:.5in"> <span><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New;color:black">In October 2008, the FASB issued FSP 157-3 &#8220;Determining Fair Value of a Financial Asset in a Market That is Not Active&#8221; (FSP 157-3). FSP 157-3 clarified the application of SFAS No. 157 in an inactive market. 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FSP 157-4 provides additional guidance on factors to consider in estimating fair value when there has been a significant decrease in market activity for a financial asset. FSP 157-4 is effective for interim and annual periods ending after June 15, 2009. The implementation of this standard did not have a material impact on our consolidated financial position and results of operations.</span></b></span> </p> <p style= "margin-top:5.95pt;margin-right:0in;margin-bottom:0in;margin-left: 0in;margin-bottom:.0001pt;text-indent:.5in"> <span><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">&#160;</span></b></span> </p> <p class="MsoNormal" style="text-indent:.5in"> <span><b style="mso-bidi-font-weight:normal"><span style= "font-size:10.0pt;font-family: Courier New">The implementation of SFAS No. 157 for nonfinancial assets and nonfinancial liabilities, effective January 1, 2009, did not have a material impact on our consolidated financial position and results of operations. See Note 11 for additional SFAS No. 157 information and disclosure for financial and nonfinancial assets and liabilities.</span></b></span> </p> <p class="MsoNormal" style="margin-top:8.0pt;text-indent:.5in"> <span><b style="mso-bidi-font-weight: normal"><span style= "font-size:10.0pt;font-family:Courier New">In December 2007, the FASB issued SFAS No. 141(revised 2007), &#8220;Business Combinations&#8221; (SFAS No. 141R). SFAS No. 141R provides revised guidance on how acquirors recognize and measure the consideration transferred, identifiable assets acquired, liabilities assumed, noncontrolling interests, and goodwill acquired in a business combination. SFAS No. 141R also expands required disclosures surrounding the nature and financial effects of business combinations. SFAS No. 141R is effective, on a prospective basis, for fiscal years beginning after December 15, 2008. <span style="color:black">Upon adoption, this standard did not have a material impact on our consolidated financial position and results of operations. 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All changes in the parent&#8217;s ownership interests are required to be accounted for consistently as equity transactions and any noncontrolling equity investments in unconsolidated subsidiaries must be measured initially at fair value. SFAS No. 160 is effective, on a prospective basis, for fiscal years beginning after December 15, 2008. However, presentation and disclosure requirements must be retrospectively applied to comparative financial statements. <span style="color:black">Upon adoption of SFAS No. 160 the Company reclassified $82 million of noncontrolling interest from other liabilities to noncontrolling interest as a separate component of shareholders equity in our consolidated balance sheet as of December 31, 2008 and $5 million and $9 million of noncontrolling interest expense to net income attributable to noncontrolling interest in our statement of operations for the second quarter and six months ended June 30, 2008, respectively. 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No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. The long term portion of asbestos liability. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. 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style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="97" valign="top" style= "width:72.5pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="106" valign="top" style= "width:79.5pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:2"> <td width="163" valign="top" style= "width:1.7in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">Aerospace</span></b></span> </p> </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;&#160;</span> $ 1,882</span></b></span> </p> </td> <td width="97" valign="top" style= "width:72.5pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;</span> <span style= "mso-spacerun:yes">&#160;</span>$ <span style= "mso-spacerun:yes">&#160;&#160;</span>-</span></b></span> </p> </td> <td width="97" valign="top" style= "width:72.5pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;&#160;</span> $ <span style= "mso-spacerun:yes">&#160;</span>-</span></b></span> </p> </td> <td width="97" valign="top" style= "width:72.5pt;padding:0in 5.4pt 0in 5.4pt"> <p 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New">&#160;</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:4"> <td width="163" valign="top" style= "width:1.7in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;</span> Control Solutions</span></b></span> </p> </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;&#160;&#160;</span> <span style= "mso-spacerun:yes">&#160;</span>6,638</span></b></span> </p> </td> <td width="97" valign="top" style= "width:72.5pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;&#160;</span> <span style= 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style= "width:79.5pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;&#160;&#160;</span> 1,151</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:6"> <td width="163" valign="top" style= "width:1.7in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">Transportation Systems</span></b></span> </p> </td> <td width="108" valign="top" style= "width:81.0pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;&#160;</span> <u><span style= "mso-spacerun:yes">&#160;&#160;&#160;</span><span style= "mso-spacerun:yes">&#160;</span>514</u></span></b></span> </p> </td> <td width="97" valign="top" style= "width:72.5pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;</span> <u>&#160;&#160; <span style= "mso-spacerun:yes">&#160;</span>-</u>&#160;</span></b></span> </p> </td> <td width="97" valign="top" style= "width:72.5pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;&#160;</span> <u>&#160;&#160; -</u>&#160;</span></b></span> </p> </td> <td width="97" valign="top" style= "width:72.5pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;&#160;&#160;</span> <u>&#160; <span style= "mso-spacerun:yes">&#160;</span>9</u></span></b></span> </p> </td> 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5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="97" valign="top" style= "width:72.5pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="97" valign="top" style= "width:72.5pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="97" valign="top" style= "width:72.5pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="106" valign="top" style= "width:79.5pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> 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border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">December 31, 2008</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:1"> <td width="187" valign="top" style= "width:1.95in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="72" valign="top" style= "width:.75in;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">Gross</span></b></span> </p> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">Carrying</span></b></span> </p> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:8.0pt; font-family:Courier New">&#160;Amount&#160;</span></u></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;border:none;border-top:solid windowtext 1.0pt; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">Accumulated</span></b></span> </p> <p class="MsoNormal" align="center" 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width="96" valign="top" style= "width:1.0in;border:none;border-top:solid windowtext 1.0pt; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">Accumulated</span></b></span> </p> <p class="MsoNormal" align="center" style= "text-align:center"> <span><b style= "mso-bidi-font-weight:normal"><u><span style= "font-size:8.0pt; font-family:Courier New">Amortization</span></u></b></span> </p> </td> <td width="72" valign="top" style= "width:.75in;border:none;border-top:solid windowtext 1.0pt; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal" align="center" style= 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style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="17" valign="top" style= "width:12.7pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="67" valign="top" style= "width:50.3pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:3"> <td width="187" valign="top" style= "width:1.95in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">Intangible assets with</span></b></span> </p> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;</span> determinable lives:</span></b></span> </p> </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="17" valign="top" style= "width:12.7pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="67" valign="top" style= "width:50.3pt;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New">&#160;</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:4"> <td width="187" valign="top" style= "width:1.95in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;</span> Patents and technology</span></b></span> </p> </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;</span>$1,030</span></b></span> </p> </td> <td width="96" valign="top" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;</span>$<span style= "mso-spacerun:yes">&#160;</span> (542)</span></b></span> </p> </td> <td width="72" valign="top" style= "width:.75in;padding:0in 5.4pt 0in 5.4pt"> <p class="MsoNormal"> <span><b style= "mso-bidi-font-weight:normal"><span style= "font-size:8.0pt;font-family: Courier New"><span style= "mso-spacerun:yes">&#160;</span>$<span style= "mso-spacerun:yes">&#160;</span> 488</span></b></span> </p> </td> <td 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No authoritative reference available. false 14 3 us-gaap_InterestAndDebtExpense us-gaap true debit duration monetary No definition available. false false false false false false false false false 1 false true 123000000 123 false false 2 false true 115000000 115 false false 3 false true 240000000 240 false false 4 false true 230000000 230 false false No definition available. No authoritative reference available. true 15 3 hon_CostAndOperatingExpenses hon false debit duration monetary Total costs of sales and operating expenses for the period. false false false false false false false false false 1 false true 6940000000 6940 false false 2 false true 8685000000 8685 false false 3 false true 13967000000 13967 false false 4 false true 16701000000 16701 false false Total costs of sales and operating expenses for the period. No authoritative reference available. true 16 3 hon_IncomeBeforeTaxes hon false credit duration monetary Continuing income before taxes, including minority interest and equity income. false false false false false false false false false 1 false true 626000000 626 false false 2 false true 989000000 989 false false 3 false true 1169000000 1169 false false 4 false true 1868000000 1868 false false Continuing income before taxes, including minority interest and equity income. No authoritative reference available. false 17 3 us-gaap_IncomeTaxExpenseBenefit us-gaap true debit duration monetary No definition available. false false false false false false false false false 1 false true 166000000 166 false false 2 false true 261000000 261 false false 3 false true 310000000 310 false false 4 false true 493000000 493 false false No definition available. No authoritative reference available. true 18 3 us-gaap_IncomeLossFromContinuingOperationsIncludingPortionAttributableToNoncontrollingInterest us-gaap true credit duration monetary No definition available. false false false false false false false false false 1 false true 460000000 460 false false 2 false true 728000000 728 false false 3 false true 859000000 859 false false 4 false true 1375000000 1375 false false No definition available. No authoritative reference available. false 19 3 us-gaap_NetIncomeLossAttributableToNoncontrollingInterest us-gaap true debit duration monetary No definition available. false false false false false false false false false 1 false true 10000000 10 false false 2 false true 5000000 5 false false 3 false true 12000000 12 false false 4 false true 9000000 9 false false No definition available. No authoritative reference available. true 20 3 us-gaap_NetIncomeLoss us-gaap true credit duration monetary No definition available. false false false false false false false false false 1 true true 450000000 450 false false 2 true true 723000000 723 false false 3 true true 847000000 847 false false 4 true true 1366000000 1366 false false No definition available. No authoritative reference available. true 21 3 us-gaap_EarningsPerShareBasic us-gaap true na duration decimal No definition available. false false false false false false false false true 1 true true 0.6 0.6 false false 2 true true 0.97 0.97 false false 3 true true 1.14 1.14 false false 4 true true 1.84 1.84 false false No definition available. No authoritative reference available. true 22 3 us-gaap_EarningsPerShareDiluted us-gaap true na duration decimal No definition available. false false false false false false false false true 1 true true 0.6 0.6 false false 2 true true 0.96 0.96 false false 3 true true 1.14 1.14 false false 4 true true 1.81 1.81 false false No definition available. No authoritative reference available. true 23 3 us-gaap_CommonStockDividendsPerShareCashPaid us-gaap true na duration decimal No definition available. false false false false false false false false false 1 false true 0.3025 0.3025 false false 2 false true 0.275 0.275 false false 3 false true 0.605 0.605 false false 4 false true 0.55 0.55 false false No definition available. No authoritative reference available. false false 4 19 false Millions UnKnown NoRounding false true XML 26 FilingSummary.xml IDEA: XBRL DOCUMENT 1.0.0.3 true Sheet 100000 - Document - Document and Entity Information Document and Entity Information R1.xml false Sheet 124110 - Statement - Consolidated Statement of Operations Consolidated Statement of Operations R2.xml false Sheet 124120 - Statement - Consolidated Balance Sheet Consolidated Balance Sheet R3.xml false Sheet 124130 - Statement - Consolidated Statement of Cash Flows Consolidated Statement of Cash Flows R4.xml false Sheet 124131 - Disclosure - Basis of Presentation Basis of Presentation R5.xml false Sheet 124132 - Disclosure - Recent Accounting Pronouncements Recent Accounting Pronouncements R6.xml false Sheet 124133 - Disclosure - Acquisitions Acquisitions R7.xml false Sheet 124134 - Disclosure - Repositioning and Other Charges Repositioning and Other Charges R8.xml false Sheet 124135 - Disclosure - Other (income) expense 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padding:0in 5.4pt 0in 5.4pt;height:13.5pt"> <p class="MsoNormal"> <span><b><span style= "font-size:10.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="4" nowrap="nowrap" valign="bottom" style= "width:3.1pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt"> <p class="MsoNormal"> <span><b><span style= "font-size:10.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="82" nowrap="nowrap" valign="bottom" style= "width:61.45pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt"> <p class="MsoNormal"> <span><b><span style= "font-size:10.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="23" nowrap="nowrap" valign="bottom" style= "width:17.0pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt"> <p class="MsoNormal"> <span><b><span style= "font-size:10.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="90" nowrap="nowrap" valign="bottom" style= "width:67.5pt;background:white; padding:0in 5.4pt 0in 5.4pt;height:13.5pt"> <p class="MsoNormal"> <span><b><span style= "font-size:10.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="4" nowrap="nowrap" valign="bottom" style= "width:3.05pt;padding:0in 5.4pt 0in 5.4pt; 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height:13.5pt"> <p class="MsoNormal"> <span><b><span style= "font-size:10.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="23" nowrap="nowrap" valign="bottom" style= "width:17.0pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt"> <p class="MsoNormal"> <span><b><span style= "font-size:10.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="90" nowrap="nowrap" valign="bottom" style= "width:67.5pt;background:white; padding:0in 5.4pt 0in 5.4pt;height:13.5pt"> <p class="MsoNormal"> <span><b><span style= "font-size:10.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="4" nowrap="nowrap" valign="bottom" style= "width:3.05pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt"> <p class="MsoNormal"> <span><b><span style= "font-size:10.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="90" nowrap="nowrap" valign="bottom" style= "width:67.5pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt"> <p class="MsoNormal"> <span><b><span style= "font-size:10.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:24;height:13.5pt"> <td width="307" valign="bottom" style= "width:230.0pt;padding:0in 5.4pt 0in 5.4pt; 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height:6.95pt"> <p class="MsoNormal"> <span><b><span style= "font-size:10.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="82" nowrap="nowrap" valign="bottom" style= "width:61.45pt;background:white; padding:0in 5.4pt 0in 5.4pt;height:6.95pt"> <p class="MsoNormal"> <span><b><span style= "font-size:10.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="4" nowrap="nowrap" valign="bottom" style= "width:3.1pt;padding:0in 5.4pt 0in 5.4pt; height:6.95pt"> <p class="MsoNormal"> <span><b><span style= "font-size:10.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="82" nowrap="nowrap" valign="bottom" style= "width:61.45pt;padding:0in 5.4pt 0in 5.4pt; height:6.95pt"> <p class="MsoNormal"> <span><b><span style= "font-size:10.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="23" nowrap="nowrap" valign="bottom" style= "width:17.0pt;padding:0in 5.4pt 0in 5.4pt; height:6.95pt"> <p class="MsoNormal"> <span><b><span style= "font-size:10.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="90" nowrap="nowrap" valign="bottom" style= "width:67.5pt;background:white; padding:0in 5.4pt 0in 5.4pt;height:6.95pt"> <p class="MsoNormal"> <span><b><span style= "font-size:10.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="4" nowrap="nowrap" valign="bottom" style= "width:3.05pt;padding:0in 5.4pt 0in 5.4pt; height:6.95pt"> <p class="MsoNormal"> <span><b><span style= "font-size:10.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> <td width="90" nowrap="nowrap" valign="bottom" style= "width:67.5pt;padding:0in 5.4pt 0in 5.4pt; height:6.95pt"> <p class="MsoNormal"> <span><b><span style= "font-size:10.0pt;font-family:Courier New">&#160;</span></b></span> </p> </td> </tr> <tr style="mso-yfti-irow:27;height:14.25pt"> <td width="307" valign="bottom" style= "width:230.0pt;padding:0in 5.4pt 0in 5.4pt; height:14.25pt"> <p class="MsoNormal"> <span><b><span style= "font-size:10.0pt;font-family:Courier New">Income before taxes</span></b></span> </p> </td> <td width="82" nowrap="nowrap" valign="bottom" style= "width:61.45pt;border:none; 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Segment Financial Data &#160; Honeywell&#8217;s senior management evaluates segment false false No definition available. No authoritative reference available. false false 1 2 false UnKnown UnKnown UnKnown false true
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