-----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, RLUW0BBII13uf9oeWA2DZBa4NGNxoJiObyDJ9mU5JzqZiECQ8OzBuiwCWNK4tZSd nHkdx0SUsGgeRG9XJpUzRw== 0000950123-10-029809.txt : 20100330 0000950123-10-029809.hdr.sgml : 20100330 20100330115033 ACCESSION NUMBER: 0000950123-10-029809 CONFORMED SUBMISSION TYPE: 20-F/A PUBLIC DOCUMENT COUNT: 10 CONFORMED PERIOD OF REPORT: 20091231 FILED AS OF DATE: 20100330 DATE AS OF CHANGE: 20100330 FILER: COMPANY DATA: COMPANY CONFORMED NAME: STMICROELECTRONICS NV CENTRAL INDEX KEY: 0000932787 STANDARD INDUSTRIAL CLASSIFICATION: SEMICONDUCTORS & RELATED DEVICES [3674] IRS NUMBER: 000000000 STATE OF INCORPORATION: P7 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 20-F/A SEC ACT: 1934 Act SEC FILE NUMBER: 001-13546 FILM NUMBER: 10712743 BUSINESS ADDRESS: STREET 1: 39 CHEMIN DU CHAMP DES FILLES STREET 2: 1228 PLAN-LES-OUATES CITY: GENEVA STATE: V8 ZIP: 00000 BUSINESS PHONE: 011 41 22 929 2929 MAIL ADDRESS: STREET 1: 39 CHEMIN DU CHAMP DES FILLES STREET 2: 1228 PLAN-LES-OUATES CITY: GENEVA STATE: V8 ZIP: 00000 FORMER COMPANY: FORMER CONFORMED NAME: SGS THOMSON MICROELECTRONICS NV DATE OF NAME CHANGE: 19950310 20-F/A 1 y03217xbe20vfza.htm 20-F/A e20vfza
Table of Contents

As filed with the Securities and Exchange Commission on March 30, 2010
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 20-F/A
(Amendment No. 1)
     
o
  REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934
 
  OR
þ
  ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
  For the fiscal year ended December 31, 2009
 
  OR
o
  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
  For the transition period from                       to
o
  SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
  Date of event requiring this shell company report
Commission file number: 1-13546
STMicroelectronics N.V.

(Exact name of registrant as specified in its charter)
     
Not Applicable   The Netherlands
(Translation of registrant’s   (Jurisdiction of incorporation
name into English)   or organization)
39, Chemin du Champ des Filles
1228 Plan-Les-Ouates
Geneva
Switzerland

(Address of principal executive offices)

Carlo Bozotti
39, Chemin du Champ des Filles
1228 Plan-Les-Ouates
Geneva
Switzerland
Tel: +41 22 929 29 29
Fax: +41 22 929 29 88

(Name, Telephone, E-mail and/or Facsimile number and Address of Company Contact Person)
Securities registered or to be registered pursuant to Section 12(b) of the Act:
     
Title of Each Class:   Name of Each Exchange on Which Registered:
Common shares, nominal value €1.04 per share   New York Stock Exchange
Securities registered or to be registered pursuant to Section 12(g) of the Act: None
Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act: None
          Indicate the number of outstanding shares of each of the issuer’s classes of capital or common stock as of the close of the period covered by the annual report:
878,333,566 common shares at December 31, 2009
          Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
Yes þ No o
          If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.
Yes o No þ
          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 þ No o
          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 during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
Yes þ No o
          Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):
             
Large accelerated filer þ   Accelerated filer o  Non-accelerated filer o  Smaller reporting company o
        (Do not check if a smaller reporting company)    
          Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:
U.S. GAAP þ International Financial Reporting Standards as issued o Other o
by the International Accounting Standards Board
          If “Other” has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow.
Item 17 o Item 18 o
          If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes o No þ


TABLE OF CONTENTS

ITEM 19. EXHIBITS
SIGNATURES
EX-12.1
EX-12.2
EX-13.1
EX-101 INSTANCE DOCUMENT
EX-101 SCHEMA DOCUMENT
EX-101 CALCULATION LINKBASE DOCUMENT
EX-101 LABELS LINKBASE DOCUMENT
EX-101 PRESENTATION LINKBASE DOCUMENT
EX-101 DEFINITION LINKBASE DOCUMENT


Table of Contents

EXPLANATORY NOTE
                This Form 20-F/A is being filed by STMicroelectronics N.V. (the “Company”) as Amendment No. 1 to its Annual Report on Form 20-F for the fiscal year ended December 31, 2009, filed with the Securities and Exchange Commission on March 10, 2009 (“2009 20-F”). The purpose of this Form 20-F/A is to amend the 2009 20-F to provide Interactive Data File disclosure. The Interactive Data File disclosure attached as Exhibit 101 to this Form 20-F/A is the first Interactive Data File the Company is required to submit in order to comply with Rule 405 of Regulation S-T.
                Other than as expressly set forth above, this Form 20-F/A does not, and does not purport to, amend, update, or restate the information in any Item of the Company’s 2009 20-F.


Table of Contents

ITEM 19. EXHIBITS
     
1.1
 
Amended and Related Articles of Associations of STMicroelectronics N.V., dated May 20, 2009, as adopted by the annual general meeting of Shareholders on May 20, 2009 (incorporated by reference to Form 20-F of STMicroelectronics N.V. filed on March 10, 2010).
 
   
4.1
 
Sale and Contribution Agreement between STMicroelectronics N.V. and NXP B.V. dated April 10, 2008 (incorporated by reference to Form 20-F of STMicroelectronics N.V. filed on May 13, 2009).
 
   
4.2
 
Framework Agreement by and between STMicroelectronics N.V. and Telefonaktiebolaget L.M. Ericsson dated August 19, 2008 (incorporated by reference to Form 20-F of STMicroelectronics N.V. filed on May 13, 2009).
 
   
8.1
 
Subsidiaries and Equity Investments of the Company (incorporated by reference to Form 20-F of STMicroelectronics N.V. filed on March 10, 2010).
 
   
12.1
 
Certification of Carlo Bozotti, President and Chief Executive Officer of STMicroelectronics N.V., pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
 
   
12.2
 
Certification of Carlo Ferro, Executive Vice President and Chief Financial Officer of STMicroelectronics N.V., pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
 
   
13.1
 
Certification of Carlo Bozotti, President and Chief Executive Officer of STMicroelectronics N.V., and Carlo Ferro, Executive Vice President and Chief Financial Officer of STMicroelectronics N.V., pursuant to 18 U.S.C. §1350, as adopted by Section 906 of the Sarbanes-Oxley Act of 2002.
 
   
15.1
 
Consent of Independent Registered Public Accounting Firm (incorporated by reference to Form 20-F of STMicroelectronics N.V. filed on March 10, 2010).
 
   
15.2
 
Consent of Independent Registered Public Accounting Firm for Numonyx Holdings B.V. (incorporated by reference to Form 20-F of STMicroelectronics N.V. filed on March 10, 2010).
 
   
101
 
Interactive Data File


Table of Contents

SIGNATURES
                The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused and authorized the undersigned to sign this Amendment No. 1 to its Form 20-F for the year ended December 31, 2009 on its behalf.
         
  STMICROELECTRONICS N.V.
 
 
Date: March 30, 2010  By:   /s/ Carlo Bozotti    
    Carlo Bozotti   
    President and Chief Executive Officer   
 

EX-12.1 2 y03217xbexv12w1.htm EX-12.1 exv12w1
Exhibit 12.1
CERTIFICATION
                     I, Carlo Bozotti, certify that:
                    1. I have reviewed this Amendment No. 1 to the annual report on Form 20-F of STMicroelectronics N.V.;
                    2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
                    3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report;
                    4. The company’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and have:
          a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
          b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
          c) Evaluated the effectiveness of the company’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
          d) Disclosed in this report any change in the company’s internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the company’s internal control over financial reporting; and
                    5. The company’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the company’s auditors and the audit committee of the company’s board of directors (or persons performing the equivalent functions):
          a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the company’s ability to record, process, summarize and report financial information; and
          b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the company’s internal control over financial reporting.
         
Date: March 30, 2010  By:   /s/ Carlo Bozotti    
    Carlo Bozotti   
    President and Chief Executive Officer   
 

 

EX-12.2 3 y03217xbexv12w2.htm EX-12.2 exv12w2
Exhibit 12.2
CERTIFICATION
I, Carlo Ferro, certify that:
                    1. I have reviewed this Amendment No. 1 to the annual report on Form 20-F of STMicroelectronics N.V.;
                    2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
                    3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report;
                    4. The company’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and have:
          a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
          b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
          c) Evaluated the effectiveness of the company’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
          d) Disclosed in this report any change in the company’s internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the company’s internal control over financial reporting; and
                    5. The company’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the company’s auditors and the audit committee of the company’s board of directors (or persons performing the equivalent functions):
          a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the company’s ability to record, process, summarize and report financial information; and
          b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the company’s internal control over financial reporting.
         
Date: March 30, 2010  By:   /s/ Carlo Ferro    
    Carlo Ferro   
    Executive Vice President and Chief Financial
Officer
 
 
 

 

EX-13.1 4 y03217xbexv13w1.htm EX-13.1 exv13w1
Exhibit 13.1
CERTIFICATION OF CARLO BOZOTTI, PRESIDENT AND CHIEF EXECUTIVE OFFICER
OF STMICROELECTRONICS N.V. AND CARLO FERRO, EXECUTIVE VICE PRESIDENT
AND CHIEF FINANCIAL OFFICER OF STMICROELECTRONICS N.V.,
PURSUANT TO SECTION 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
                    In connection with the Amendment No. 1 to the annual report of STMicroelectronics N.V. (the “Company”) on Form 20-F for the period ending December 31, 2009, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned hereby certify that to the best of our knowledge:
          1. The Report fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and
          2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
         
Date: March 30, 2010  By:   /s/ Carlo Bozotti    
    Carlo Bozotti   
    President and Chief Executive Officer   
 
Date: March 30, 2010  By:   /s/ Carlo Ferro    
    Carlo Ferro   
    Executive Vice President and Chief Financial Officer   
 

 

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The US dollar is the currency of the primary economic environment in which the Company operates since the worldwide semiconductor industry uses the U.S.&#160;dollar as a currency of reference for actual pricing in the market. Furthermore, the majority of the Company&#8217;s transactions are denominated in U.S.&#160;dollars, and revenues from external sales in U.S.&#160;dollars largely exceed revenues in any other currency. However, labor costs are concentrated primarily in the countries of the Euro zone. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The functional currency of each subsidiary of the Company is either the local currency or the US dollar, depending on the basis of the economic environment in which each subsidiary operates. For consolidation purposes, assets and liabilities of these subsidiaries having the local currency as functional currency are translated at current rates of exchange at the balance sheet date. Income and expense items are translated at the monthly average exchange rate of the period. 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At each balance sheet date, recorded balances denominated in a currency other than the recording entity&#8217;s functional currency are measured into the functional currency at the exchange rate prevailing at the balance sheet date. 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The classification depends on the purpose for which the investments were acquired. Management determines the classification of its financial assets at initial recognition and reassesses the appropriateness of the classification at each reporting date. On January&#160;1, 2008 upon adoption of the new U.S.&#160;GAAP guidance allowing the election of fair value treatment for any or all financial assets, the Company did not elect to apply the fair value option to any financial assets. Unlisted equity securities with no readily determinable fair value are carried at cost, as described in Note&#160;2.19. They are neither classified as held-for-trading nor as available-for-sale. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Regular purchases and sales of financial assets are recognized on the trade date&#160;&#8212; the date on which the Company commits to purchase or sell the asset. Financial assets are initially recognized at fair value, and transaction costs are expensed in the consolidated statements of income. Available-for-sale financial assets and held-for-trading financial assets are subsequently carried at fair value. Financial assets are derecognized when the rights to receive cash flows from the investments have expired or have been transferred and the Company has transferred substantially all risks and rewards of ownership: the relevant gain (loss) is reported as a non-operating element on the consolidated statements of income. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The fair values of quoted debt and equity securities are based on current market prices. If the market for a financial asset is not active and if no observable market price is obtainable, the Company measures fair value by using assumptions and estimates. These assumptions and estimates include the use of recent arm&#8217;s length transactions; for debt securities without available observable market price, the Company establishes fair value by reference to publicly available indices of securities with the same rating and comparable underlying collaterals or industries&#8217; exposure, which the Company believes approximates the orderly exit value in the current market. 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Assets in this category are classified as current assets when they are expected to be realized within twelve months of the balance sheet date. As described in Note&#160;2.5, the Company enters into derivative transactions to hedge currency exposures resulting from its operating activities. For mark-to-market gains or losses on its trading derivatives that do not qualify as hedging instruments, gains and losses arising from changes in the fair value of the derivatives are reported in the consolidated statements of income within &#8220;Other income and expenses, net&#8221; in the period in which they arise, since the transactions for such instruments would only occur within the Company&#8217;s operating activities and, as such, should be included in operating income. Gains and losses arising from changes in the fair value of financial assets not related to the operating activities of the Company, such as discontinued fair value hedge on interest rate risk exposure or discontinued cash flow hedge for which the hedged forecasted transaction is not probable of occurrence anymore, are presented in the consolidated statements of income as a non-operating element within &#8220;Gain (loss) on financial assets&#8221; in the period in which they arise. </div> <div style="margin-top: 12pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 6%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <i><font style="font-family: 'Times New Roman', Times">Available-for-sale financial assets</font></i> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Available-for-sale financial assets are non-derivative financial assets that are either designated in this category or not classified as held-for-trading. 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The cumulative loss or gain is measured as the difference between the acquisition cost and the current fair value, less any impairment loss on that financial asset previously recognized in profit or loss. If a credit loss exists, but the Company does not intend to sell the impaired security and is not more likely than not to be required to sell before recovery, the impairment is other than temporary and is separated into the estimated amount relating to credit loss, and the amount relating to all other factors. Only the estimated credit loss amount is recognized currently in earnings on the line &#8220;Other-than-temporary impairment charge and realized losses on financial assets&#8221;, with the remainder of the loss amount recognized in accumulated other comprehensive income (loss). Impairment losses recognized in the consolidated statements of income are not reversed through earnings. 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The Company also documents its assessment, both at hedge inception and on an ongoing basis, of whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flows of hedged items. 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For these derivatives, ineffectiveness appears if the hedge relationship is not perfectly effective or if the cumulative gain or loss on the derivative hedging instrument exceeds the cumulative change in the expected future cash flows on the hedged transactions. 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De-designation and re-designation are formally authorized and limited to the de-designation of purchased currency options with re-designation of the cash flow hedge through subsequent forward contract when the Euro/US dollar exchange rate is decreasing, the intrinsic value of the option is nil, the hedged transaction is still probable of occurrence and meets at re-designation date all criteria for hedge accounting. At de-designation date, the net derivative gain or loss related to the de-designated cash flow hedge deferred in &#8220;Accumulated other comprehensive income (loss)&#8221; in the consolidated statements of changes in equity continues to be reported in net equity. From de-designation date, the change in fair value of the de-designated hedging item is recognized each period in the consolidated statements of income on the line &#8220;Other income and expenses, net&#8221;, as described in Note&#160;2.4. The net derivative gain or loss related to the de-designated cash flow hedge deferred in net equity since de-designation date is reclassified to earnings in the same period in which the hedged transaction affects earnings, and within the same consolidated statements of income line item as the impact of the hedged transaction. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The principles regulating the hedging strategy for derivatives designated as cash flow hedge are established as follows: (i)&#160;for R&#038;D and Corporate costs between 50% and 80% of the total forecasted transactions; (ii)&#160;for manufacturing costs between 40% and 70% of the total forecasted transactions. 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The criteria for designating a derivative as a hedge include evaluating whether the instrument is highly effective at offsetting changes in the fair value of the hedged item attributable to the hedged risk. Hedged effectiveness is assessed on both a prospective and retrospective basis at each reporting period. Any ineffectiveness of the hedge relationship is recorded as a gain or loss on derivatives as a component of &#8220;Other income and expenses, net&#8221;, in the consolidated statements of income. At the point that the cancellable swaps no longer meet the criteria for designation as a fair value hedge, the swaps will continue to be marked to fair value. At such point, the changes in the fair value of the swaps are recorded in &#8220;Gain (loss) on financial assets&#8221;. Also, the associated bonds will no longer be marked to fair value and the difference between fair value and amortized costs will be amortized to earnings as a component of interest expense. Results on the sale of the swaps are recognized in the line &#8220;Gain (loss) on financial assets&#8221; in the consolidated statements of income, as discussed in Note&#160;25. </div> <div style="margin-top: 12pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b><font style="font-family: 'Times New Roman', Times">2.6&#160;&#8212; Revenue Recognition</font></b> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Revenue is recognized as follows: </div> <div style="margin-top: 12pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 6%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <i><font style="font-family: 'Times New Roman', Times">Net sales</font></i> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Revenue from products sold to customers is recognized when all the following conditions have been met: (a)&#160;persuasive evidence of an arrangement exists; (b)&#160;delivery has occurred; (c)&#160;the selling price is fixed or determinable; and (d)&#160;collection is reasonably assured. 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This historical price trend represents differences in recent months between the invoiced price and the final price to the distributor, adjusted if required, to accommodate a significant move in the current market price. The short outstanding inventory time period, visibility into the standard inventory product pricing (as opposed to certain customized products) and long distributor pricing history have enabled the Company to reliably estimate price protection provisions at period-end. The Company records the accrued amounts as a deduction of revenue at the time of the sale. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The Company&#8217;s customers occasionally return the Company&#8217;s products for technical reasons. The Company&#8217;s standard terms and conditions of sale provide that if the Company determines that products are non-conforming, the Company will repair or replace the non-conforming products, or issue a credit or rebate of the purchase price. Quality returns are not related to any technological obsolescence issues and are identified shortly after sale in customer quality control testing. Quality returns are usually associated with end-user customers, not with distribution channels. The Company provides for such returns when they are considered as probable and can be reasonably estimated. The Company records the accrued amounts as a reduction of revenue. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The Company&#8217;s insurance policy relating to product liability only covers physical damage and other direct damages caused by defective products. The Company does not carry insurance against immaterial non consequential damages. The Company records a provision for warranty costs as a charge against cost of sales, based on historical trends of warranty costs incurred as a percentage of sales, which management has determined to be a reasonable estimate of the probable losses to be incurred for warranty claims in a period. Any potential warranty claims are subject to the Company&#8217;s determination that the Company is at fault for damages, and such claims usually must be submitted within a short period following the date of sale. This warranty is given in lieu of all other warranties, conditions or terms expressed or implied by statute or common law. The Company&#8217;s contractual terms and conditions limit its liability to the sales value of the products which gave rise to the claims. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> While the majority of the Company&#8217;s sales agreements contain standard terms and conditions, the Company may, from time to time, enter into agreements that contain multiple elements or non-standard terms and conditions, which require revenue recognition judgments. Where multiple elements exist in an arrangement, the arrangement is allocated to the different elements based upon verifiable objective evidence of the fair value of the elements for periods 2008 and prior, while allocation is based on verifiable objective evidence, third party evidence or management&#8217;s best estimate of selling price of the separable deliverables beginning in 2009. In 2009, the Company early adopted new US GAAP guidance for multiple deliverable arrangements. This new guidance removes the previous requirements of allocating revenue to delivered elements only to the extent that there was verifiable objective evidence of the fair value of all undelivered elements, and now requires the use of relative fair values based on either vendor specific objective evidence or third party evidence of fair values. If neither of these is available, the guidance requires the use of management&#8217;s best estimate of selling price for each separable deliverable. The early adoption of this new guidance was retroactively adopted back to January&#160;1, 2009; however, it did not have a material effect on the consolidated statements of income of the Company for the year ended December&#160;31, 2009. These arrangements generally do not include performance-, cancellation-, termination- or refund-type provisions. </div> <div style="margin-top: 12pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 6%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <i><font style="font-family: 'Times New Roman', Times">Other revenues</font></i> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Other revenues consist of license revenue, service revenue related to transferring licenses, patent royalty income, and sale of scrap and manufacturing by-products. </div> <div style="margin-top: 12pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 6%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <i><font style="font-family: 'Times New Roman', Times">Funding</font></i> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Funding received by the Company is mainly from governmental agencies and income is recorded as recognized when all contractually required conditions are fulfilled. The Company&#8217;s primary sources for government funding are French, Italian, other European Union (&#8220;EU&#8221;) governmental entities and Singapore agencies. Such funding is generally provided to encourage research and development activities, industrialization and local economic development. The EU has developed model contracts for research and development fundings that require beneficiaries to disclose the results to third parties on reasonable terms. The conditions for receipt of government funding may include eligibility restrictions, approval by EU authorities, annual budget appropriations, compliance with European Commission regulations, as well as specifications regarding objectives and results. Certain specific contracts contain obligations to maintain a minimum level of employment and investment during a certain period of time. There could be penalties if these objectives are not fulfilled. Other contracts contain penalties for late deliveries or for breach of contract, which may result in repayment obligations. In accordance with SAB&#160;104 and the Company&#8217;s revenue recognition policy, funding related to these contracts is recorded when the conditions required by the contracts are met. The Company&#8217;s funding programs are classified under three general categories: funding for research and development activities, capital investment, and loans. </div> <!-- XBRL Pagebreak Begin --> </div> <!-- END PAGE WIDTH --> <!-- PAGEBREAK --> <div style="margin-left: 0%"> <!-- BEGIN PAGE WIDTH --> <div style="margin-top: 0pt; font-size: 1pt"> </div> <div align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b> <font style="font-family: 'Times New Roman', Times"> </font> </b> </div> <!-- XBRL Pagebreak End --> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Funding for research and development activities is the most common form of funding that the Company receives. Public funding for research and development is recorded as &#8220;Other income and expenses, net&#8221; in the Company&#8217;s consolidated statements of income. Public funding for research and development is recognized ratably as the related costs are incurred once the agreement with the respective governmental agency has been signed and all applicable conditions are met. Furthermore, following the enactment of the French Finance Act for 2008, which included several changes to the research tax credit regime (&#8220;Cr&#233;dit Imp&#244;t Recherche&#8221;), French research tax credits that in prior years were recorded as a reduction of tax expense were deemed to be grants in substance. Unlike other research and development funding, the amounts to be received are determinable in advance and accruable as the funded research expenditures are made. They were thus reported, starting from January&#160;1, 2008, as a reduction of research and development expenses. The 2008 French research tax credits were classified as long term receivables in the consolidated balance sheet as at December&#160;31, 2008. The 2009 French research tax credits were classified as current receivables in the consolidated balance sheet as at December&#160;31, 2009. The research tax credits are to be reimbursed in cash by the French tax authorities within three years in case they are not deducted from income tax payable during this period of time. The Company considers such cash settlement features of the French research tax credits as long-term receivables. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Capital investment funding is recorded as a reduction of &#8220;Property, plant and equipment, net&#8221; and is recognized in the Company&#8217;s consolidated statements of income according to the depreciation charges of the funded assets during their useful lives. The Company also receives capital funding in Italy, which is recovered through the reduction of various governmental liabilities, including income taxes, value-added tax and employee-related social charges. The funding has been classified as long-term receivable and is reflected in the balance sheet at its discounted net present value. The subsequent accretion of the discount is recorded as non-operating income in &#8220;Interest income (expense), net&#8221;. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The Company receives certain loans, mainly related to large capital investment projects, at preferential interest rates. The Company records these loans as debt in its consolidated balance sheet. </div> <div style="margin-top: 12pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b><font style="font-family: 'Times New Roman', Times">2.7&#160;&#8212; Advertising costs</font></b> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Advertising costs are expensed as incurred and are recorded as selling, general and administrative expenses. Advertising expenses for 2009, 2008 and 2007 were $9&#160;million, $10&#160;million and $12&#160;million respectively. </div> <div style="margin-top: 12pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b><font style="font-family: 'Times New Roman', Times">2.8&#160;&#8212; Research and development</font></b> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Research and development expenses include costs incurred by the Company, the Company&#8217;s share of costs incurred by other research and development interest groups, and costs associated with co-development contracts. Research and development expenses do not include marketing design center costs, which are accounted for as selling expenses and process engineering, pre-production or process transfer costs which are recorded as cost of sales. Research and development costs are charged to expense as incurred. The amortization expense recognized on technologies and licenses purchased by the Company from third parties to facilitate the Company&#8217;s research is recorded as research and development expenses. Research and development expenses also include charges originated from purchase accounting, such as in-process research and development recognized on business combinations concluded before January&#160;1, 2009 and amortization of acquired intangible assets. Finally, starting January&#160;1, 2008 the research and development expenses are reported net of research tax credits received in the French jurisdiction, as described in Note&#160;2.6. </div> <div style="margin-top: 12pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b><font style="font-family: 'Times New Roman', Times">2.9&#160;&#8212; <font style="white-space: nowrap">Start-up</font> and phase-out costs</font></b> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> <font style="white-space: nowrap">Start-up</font> costs represent costs incurred in the <font style="white-space: nowrap">start-up</font> and testing of the Company&#8217;s new manufacturing facilities, before reaching the earlier of a minimum level of production or <font style="white-space: nowrap">6-months</font> after the fabrication line&#8217;s quality qualification. <font style="white-space: nowrap">Start-up</font> costs are included in &#8220;Other income and expenses, net&#8221; in the consolidated statements of income. Similarly, phase-out costs for facilities during the closing stage are also included in &#8220;Other income and expenses, net&#8221; in the consolidated statements of income. The costs of phase-outs are associated with the latest stages of facilities closure when the relevant production volumes become immaterial. </div> <div style="margin-top: 12pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b><font style="font-family: 'Times New Roman', Times">2.10&#160;&#8212; Income taxes</font></b> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The provision for current taxes represents the income taxes expected to be paid or the benefit expected to be received related to the current year income or loss in each individual tax jurisdiction. Deferred tax assets and liabilities are recorded for all temporary differences arising between the tax and book bases of assets and liabilities and for the benefits of tax credits and operating loss carry-forwards. Deferred income tax is determined using tax rates and laws that are enacted by the balance sheet date and are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled. The effect on deferred tax assets and liabilities from changes in tax law is recognized in the period of enactment. Deferred income tax assets are recognized in full, but the Company assesses whether it is probable that future taxable profit will be available against which temporary differences can be utilized. A valuation allowance is provided where necessary to reduce deferred tax assets to the amount for which management considers the possibility of recovery to be more likely than not. The Company utilizes the flow-through method to account for its investment credits, reflecting the credits as a reduction of tax expense in the year they are recognized. Similarly, research and development tax credits are classified as a reduction of tax expense in the year they are recognized. As described in Note&#160;2.6, French research tax credits are recorded as grants starting from January&#160;1, 2008 and reported as a reduction of research and development expenses. French research tax credits prior to January&#160;1, 2008 were recorded as a reduction of tax expense and were reported as deferred tax assets as at December&#160;31, 2008. No French research tax credits were reported as deferred tax assets as at December&#160;31, 2009. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Deferred taxes on the undistributed earnings of the Company&#8217;s foreign subsidiaries are provided for unless the Company intends to indefinitely reinvest the earnings in the subsidiaries. Additionally, a distribution of the related earnings would not have any material tax impact. Thus, the Company did not provide for deferred taxes on the earnings of those subsidiaries. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> A deferred tax is recognized on compensation for the grant of stock awards to the extent that such charge constitutes a temporary difference in the Company&#8217;s local tax jurisdictions. The measurement of the deferred tax asset is based on an estimate of the future tax deduction, for the amount of the compensation cost recognized for book purposes. Changes in the stock price do not thus impact the deferred tax asset or do not result in any adjustments prior to vesting. When the actual tax deduction is determined, generally upon vesting, it is compared to the estimated tax benefit as recognized over the vesting period. When a windfall tax benefit is determined (as the excess tax benefit of the actual tax deduction over the deferred tax asset) the excess tax benefit is recorded in equity on the line &#8220;Capital surplus&#8221; on the consolidated statements of changes in equity. In case of shortfall, only the actual tax benefit is to be recognized in the consolidated statements of income. The Company writes off the deferred tax asset at the level of the actual tax deduction by charging first capital surplus to the extent of the pool of windfall benefits from prior years and then earnings. When the settlement of an award results in a net operating loss (&#8220;NOL&#8221;) carryforward, or increase existing NOLs, the excess tax benefit and the corresponding credit to capital surplus is not recorded until the deduction reduces income tax payable. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> At each reporting date, the Company assesses all material open income tax positions in all tax jurisdictions to determine any uncertain tax positions. The Company uses a two-step process for the evaluation of uncertain tax positions. The recognition threshold in step one permits the benefit from an uncertain tax position to be recognized only if it is more likely than not, or 50&#160;percent assured, that the tax position will be sustained upon examination by the taxing authorities. The measurement methodology in step two is based on a &#8220;cumulative probability&#8221; approach, resulting in the recognition of the largest amount that is greater than 50&#160;percent likely of being realized upon settlement with the taxing authority. The Company classifies accrued interest and penalties related to uncertain tax positions as components of income tax expense in its consolidated statements of income. Uncertain tax positions, unrecognized tax benefits and related accrued interest and penalties are further described in Note&#160;21. </div> <div style="margin-top: 12pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b><font style="font-family: 'Times New Roman', Times">2.11&#160;&#8212; Earnings per share (&#8220;EPS&#8221;)</font></b> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Basic earnings per share are computed by dividing net income (loss) attributable to parent company shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share are computed using the treasury stock method by dividing net income (adding-back interest expense, net of tax effects, related to convertible debt if determined to be dilutive) by the weighted average number of common shares and common share equivalents outstanding during the period. The weighted average number of shares used to compute diluted earnings per share include the incremental shares of common stock relating to stock-options granted, nonvested shares and convertible debt to the extent such incremental shares are dilutive. Nonvested shares with performance or market conditions are included in the computation of diluted earnings per share if their conditions have been satisfied at the balance sheet date and if the awards are dilutive. If all necessary conditions have not been satisfied by the end of the period, the number of nonvested shares included in the computation of the diluted EPS shall be based on the number of shares, if any that would be issuable if the end of the reporting period were the end of the contingency period and if the result were dilutive. </div> <div style="margin-top: 12pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b><font style="font-family: 'Times New Roman', Times">2.12&#160;&#8212; Cash and cash equivalents</font></b> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Cash and cash equivalents represent cash on hand and deposits with external financial institutions with an original maturity of ninety days or less that are readily convertible in cash. 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The Company maintains an allowance for doubtful accounts for potential estimated losses resulting from its customers&#8217; inability to make required payments. The Company bases its estimates on historical collection trends and records a provision accordingly. In addition, the Company is required to evaluate its customers&#8217; financial condition periodically and records an additional provision for any specific account the Company estimates as doubtful. The carrying amount of the receivable is thus reduced through the use of an allowance account, and the amount of the loss is recognized on the line &#8220;Selling, general and administrative&#8221; in the consolidated statements of income. When a trade accounts receivable is uncollectible, it is written-off against the allowance account for trade accounts receivables. Subsequent recoveries, if any, of amounts previously written-off are credited against &#8220;Selling, general and administrative&#8221; in the consolidated statements of income. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> In the events of sale of receivables and factoring, the Company derecognizes the receivables and accounts for them as a sale only to the extent that the Company has surrendered control over the receivables in exchange for a consideration other than beneficial interest in the transferred receivables. </div> <div style="margin-top: 12pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b><font style="font-family: 'Times New Roman', Times">2.15&#160;&#8212; Inventories</font></b> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Inventories are stated at the lower of cost or net realizable value. Cost is based on the weighted average cost by adjusting standard cost to approximate actual manufacturing costs on a quarterly basis; the cost is therefore dependent on the Company&#8217;s manufacturing performance. In the case of underutilization of manufacturing facilities, the costs associated with the excess capacity are not included in the valuation of inventories but charged directly to cost of sales. Net realizable value is the estimated selling price in the ordinary course of business, less applicable variable selling expenses and cost of completion. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The Company performs on a continuous basis inventory write-off of products, which have the characteristics of slow-moving, old production date and technical obsolescence. Additionally, the Company evaluates its product inventory to identify obsolete or slow-selling stock and records a specific provision if the Company estimates the inventory will eventually become obsolete. Provisions for obsolescence are estimated for excess uncommitted inventory based on the previous quarter sales, orders&#8217; backlog and production plans. </div> <div style="margin-top: 12pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b><font style="font-family: 'Times New Roman', Times">2.16&#160;&#8212; Goodwill</font></b> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Goodwill represents the excess of the cost of an acquisition over the fair value of the net identifiable assets of the acquired business at the date of acquisition. Goodwill is carried at cost less accumulated impairment losses. Goodwill is not amortized but is tested annually for impairment, or more frequently if indicators of impairment exist. Goodwill subject to potential impairment is tested at a reporting unit level, which represents a component of an operating segment for which discrete financial information is available and is subject to regular review by segment management. This impairment test determines whether the fair value of each reporting unit for which goodwill is allocated is lower than the total carrying amount of relevant net assets allocated to such reporting unit, including its allocated goodwill. If lower, the implied fair value of the reporting unit goodwill is then compared to the carrying value of the goodwill and an impairment charge is recognized for any excess. In determining the fair value of a reporting unit, the Company uses a market approach with financial metrics of comparable public companies and estimates the expected discounted future cash flows associated with the reporting unit. Significant management judgments and estimates are used in forecasting the future discounted cash flows, including: the applicable industry&#8217;s sales volume forecast and selling price evolution, the reporting unit&#8217;s market penetration and its revenues evolution, the market acceptance of certain new technologies and products, the relevant cost structure, the discount rates applied using a weighted average cost of capital and the perpetuity rates used in calculating cash flow terminal values. </div> <div style="margin-top: 12pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b><font style="font-family: 'Times New Roman', Times">2.17&#160;&#8212; Intangible assets</font></b> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Intangible assets subject to amortization include the intangible assets purchased from third parties recorded at cost and the intangible assets acquired in business combinations recorded at fair value, which include trademarks, technologies and licenses, contractual customer relationships and computer software. </div> <div style="margin-top: 12pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 6%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b><i><font style="font-family: 'Times New Roman', Times">Trademarks and technology licenses</font></i></b> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Separately acquired trademarks and licenses are recorded at historical cost. Trademarks and licenses acquired in a business combination are recognized at fair value at the acquisition date. Trademarks and licenses have a finite useful life and are carried at cost less accumulated amortization. Amortization is calculated using the straight-line method to allocate the cost of trademarks and licenses over the estimated useful lives. The estimate useful lives on licenses range from 3 to 7&#160;years while trademarks have a useful life ranging from 2 to 3&#160;years. </div> <div style="margin-top: 12pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 6%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b><i><font style="font-family: 'Times New Roman', Times">Contractual customer relationships</font></i></b> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Contractual customer relationships acquired in a business combination are recognized at fair value at the acquisition date. Contractual customer relationships have a finite useful life and are carried at cost less accumulated amortization. Amortization is calculated using the straight-line method over the expected life of the customer relationships, which ranges from 4 to 12&#160;years. </div> <div style="margin-top: 12pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 6%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b><i><font style="font-family: 'Times New Roman', Times">Computer software</font></i></b> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Separately acquired computer software is recorded at historical cost. Costs associated with maintaining computer software programmes are recognized as expenses as incurred. The capitalization of costs for internally generated software developed by the Company for its internal use begins when preliminary project stage is completed and when the Company, implicitly or explicitly, authorizes and commits to funding a computer software project. It must be probable that the project will be completed and will be used to perform the function intended. Computer software recognized as assets are amortised over their estimated useful lives, which does not exceed 4&#160;years. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Intangible assets subject to amortization are reflected net of any impairment losses. The carrying value of intangible assets subject to amortization is evaluated whenever changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized in the consolidated statements of income for the amount by which the asset&#8217;s carrying amount exceeds its fair value. The Company evaluates the remaining useful life of an intangible asset at each reporting period to determine whether events and circumstances warrant a revision to the remaining period of amortization. </div> <div style="margin-top: 12pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b><font style="font-family: 'Times New Roman', Times">2.18&#160;&#8212; Property, plant and equipment</font></b> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Property, plant and equipment are stated at historical cost, net of government funding and any impairment losses. Major additions and improvements are capitalized, minor replacements and repairs are charged to current operations. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Land is not depreciated. Depreciation on fixed assets is computed using the straight-line method over their estimated useful lives, as follows: </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <table border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff; text-align: left"> <!-- Table Width Row BEGIN --> <tr style="font-size: 1pt" valign="bottom"> <td width="87%">&#160;</td><!-- colindex=01 type=maindata --> <td width="2%">&#160;</td><!-- colindex=02 type=gutter --> <td width="5%" align="right">&#160;</td><!-- colindex=02 type=lead --> <td width="1%" align="right">&#160;</td><!-- colindex=02 type=body --> <td width="5%" align="left">&#160;</td><!-- colindex=02 type=hang1 --> </tr> <!-- Table Width Row END --> <!-- TableOutputHead --> <!-- TableOutputBody --> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Buildings </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 33 years </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Facilities&#160;&#038; leasehold improvements </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 5-10 years </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Machinery and equipment </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 3-10 years </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Computer and R&#038;D equipment </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 3-6 years </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Other </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 2-5 years </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> </table> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> </div> <!-- XBRL Pagebreak Begin --> </div> <!-- END PAGE WIDTH --> <!-- PAGEBREAK --> <div style="margin-left: 0%"> <!-- BEGIN PAGE WIDTH --> <div style="margin-top: 0pt; font-size: 1pt"> </div> <div align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b> <font style="font-family: 'Times New Roman', Times"> </font> </b> </div> <!-- XBRL Pagebreak End --> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> In 2008, the Company launched its first <font style="white-space: nowrap">300-mm</font> production facility. Consequently, the Company assessed the useful life of its <font style="white-space: nowrap">300-mm</font> manufacturing equipment, based on relevant economic and technical factors. The conclusion was that the appropriate depreciation period for such <font style="white-space: nowrap">300-mm</font> equipment was 10&#160;years. This policy was applied starting January&#160;1, 2008. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The Company evaluates each period whether there is reason to suspect that tangible assets or groups of assets might not be recoverable. Several impairment indicators exist for making this assessment, such as: significant changes in the technological, market, economic or legal environment in which the Company operates or in the market to which the asset is dedicated, or available evidence of obsolescence of the asset, or indication that its economic performance is, or will be, worse than expected. In determining the recoverability of assets to be held and used, the Company initially assesses whether the carrying value of the tangible assets or group of assets exceeds the undiscounted cash flows associated with these assets. If exceeded, the Company then evaluates whether an impairment charge is required by determining if the asset&#8217;s carrying value also exceeds its fair value. This fair value is normally estimated by the Company based on independent market appraisals or the sum of discounted future cash flows, using market assumptions such as the utilization of the Company&#8217;s fabrication facilities and the ability to upgrade such facilities, change in the selling price and the adoption of new technologies. The Company also evaluates, and adjusts if appropriate, the assets&#8217; useful lives, at each balance sheet date or when impairment indicators exist. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Assets are classified as assets held for sale when the following conditions have been met for the assets to be disposed of by sale: management has approved the plan to sell; assets are available for immediate sale; assets are actively being marketed; sale is probable within one year; price is reasonable in the market and it is unlikely that there will be significant changes in the assets to be sold or a withdrawal to the plan to sell. Assets classified as held for sale are reported as current assets at the lower of their carrying amount or fair value less selling costs and are not depreciated during the selling period. Costs to sell include incremental direct costs to transact the sale that would not have been incurred except for the decision to sell. When the held-for-sale accounting treatment requires an impairment charge for the difference between the carrying amount and the fair value, such impairment is reflected on the consolidated statements of income on the line &#8220;Impairment, restructuring charges and other related closure costs&#8221;. If the long-lived assets no longer meet the held-for-sale model, they are reported as assets held for use and thus reclassified from current assets to the line &#8220;Property, plant and equipment, net&#8221; in the consolidated balance sheet. The assets are measured at the lower of their fair value at the date of the subsequent decision not to sell and their carrying amount prior to their classification as assets held for sale, adjusted for any depreciation that would have been recognized if the long-lived assets had not been classified as assets held for sale. The fair value at the date of the decision not to sell is based on the discounted cash flows expected from the use of the assets. Any required adjustment to the carrying value of the asset that is reclassified as held and used is recorded in the income statement at the time of the reclassification and reported in the same income statement caption that was used to report adjustments to the carrying value of the asset during the time it was held for sale (line &#8220;Impairment, restructuring charges and other related closure costs&#8221;). When property, plant and equipment are retired or otherwise disposed of, the net book value of the assets is removed from the Company&#8217;s books and the net gain or loss is included in &#8220;Other income and expenses, net&#8221; in the consolidated statements of income. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Leasing arrangements in which a significant portion of the risks and rewards of ownership are retained by the Company are classified as capital leases. Capital leases are included in &#8220;Property, plant and equipment, net&#8221; and depreciated over the shorter of the estimated useful life or the lease term. Leasing arrangements classified as operating leases are arrangements in which the lessor retains a significant portion of the risks and rewards of ownership of the leased asset. Payments made under operating leases are charged to the consolidated statements of income on a straight-line basis over the period of the lease. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Borrowing costs incurred for the construction of any qualifying asset are capitalized during the period of time that is required to complete and prepare the asset for its intended use. Other borrowing costs are expensed. </div> <div style="margin-top: 12pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b><font style="font-family: 'Times New Roman', Times">2.19&#160;&#8212; Investments</font></b> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> For investments in public companies that have readily determinable fair values and for which the Company does not exercise significant influence, the Company classifies these investments as held-for-trading or available-for-sale as described in Note&#160;2.4. Investments in equity securities without readily determinable fair values and for which the Company does not have the ability to exercise significant influence are accounted for under the cost method. Under the cost method of accounting, investments are carried at historical cost and are adjusted only for declines in value. The value of a cost method investment is estimated on a non-recurring basis when there are identified events or changes in circumstances that may have a significant adverse effect on the fair value of the investment. Other-than-temporary impairment losses are immediately recorded in the consolidated statements of income and are based on the Company&#8217;s assessment of any significant and sustained reductions in the investment&#8217;s fair value. For unquoted equity securities, assumptions and estimates used in measuring fair value include the use of recent arm&#8217;s length transactions when they reflect the orderly exit price of the investments. Gains and losses on investments sold are determined on the specific identification method and are recorded as a non-operating element on the line &#8220;Gain (loss) on financial assets&#8221; in the consolidated statements of income. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Equity investments are all entities over which the Company has the ability to exercise significant influence but not control, generally representing a shareholding of between 20% and 50% of the voting rights. These investments are accounted for by the equity method of accounting and are initially recognized at cost. Equity investments also include entities which the Company determines to be variable interest entities, as described below, if the Company has the ability to exercise significant influence over the entity&#8217;s operations even if the Company owns less than 20% and is not the primary beneficiary. Equity investments are presented on the face of the consolidated balance sheet on the line &#8220;Equity investments&#8221;. The Company&#8217;s share in its equity investments&#8217; profit and loss is recognized in the consolidated statements of income as &#8220;Loss on equity investments&#8221; and in the consolidated balance sheets as an adjustment against the carrying amount of the investments. When the Company&#8217;s share of losses in an equity investment equals or exceeds its interest in the investee, including any unsecured receivable, the Company does not recognize further losses, unless it has incurred obligations or made payments on behalf of the investee. At each period-end, the Company assesses whether there is objective evidence that its interests in the equity investments are impaired. Once a determination is made that an other-then-temporary impairment exists, the Company writes down the carrying value of the equity investment to its fair value at the balance sheet date, which establishes a new cost basis. The fair value of an equity investment is measured on a non-recurring basis using a combination of an income approach, based on discounted cash flows, and a market approach with financial metrics of comparable public companies. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The Company assesses entities identified as a Variable Interest Entity (&#8220;VIE&#8221;) and consolidates the VIEs, if any, for which the Company is determined to be the primary beneficiary. The primary beneficiary of a VIE is the party that absorbs the majority of the entity&#8217;s expected losses, receives the majority of its expected residual returns, or both as a result of holding variable interests. Assets, liabilities, and the noncontrolling interest of newly consolidated VIEs are initially measured at fair value in the same manner as if the consolidation resulted from a business combination. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> For business combinations concluded before January&#160;1, 2009, the purchase method of accounting was used to account for a business combination if the acquired entity met the definition of a business. If the acquired entity was a development stage entity and had not commenced planned principal operations, it was presumed not to be a business, and the individual assets and liabilities were recognized at their relative fair values with no goodwill recognized in the consolidated balance sheet. In case of acquisition of a business, the cost of the acquisition was measured at the fair value of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the acquisition. If part of the consideration was contingent on a future event, the additional cost was not generally recognized until the contingency was resolved, the amount was determinable, or beyond a reasonable doubt. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination were measured initially at their fair values at the acquisition date. Any acquired in-process research and development (&#8220;IPR&#038;D&#8221;) was expensed immediately in the consolidated statements of income since it had no alternative future use. The excess of the cost of acquisition over the fair value of the identifiable net assets acquired was recorded as goodwill. If the cost of acquisition was lower than the fair value of the net assets of the entity acquired, the difference was used to reduce proportionately the fair value assigned and allocated on a pro-rata basis to all assets other than current and financial assets, assets to be sold, prepaid pension assets and deferred taxes. Any negative goodwill remaining was recognized as an extraordinary gain. Goodwill arising from a purchase of less than 100% of a business was valued as the difference between the purchase price paid by the Company and its proportionate share of the fair values of the identifiable net assets acquired, while the noncontrolling interest was reported based on the book value of net assets acquired. Consequently, there was no step up for the noncontrolling interests&#8217; share of the excess of the fair value of net assets over book value. When the Company acquired a business and a portion of the consideration was a noncontrolling interest in one or more of the Company&#8217;s businesses, the Company valued the net assets of the subsidiaries in which the interest was being given at fair value and recorded the difference between fair value and book value related to the interest on the line &#8220;Issuance of shares by subsidiary&#8221; in the consolidated statements of changes in equity. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The purchase accounting method applied to all business combinations concluded on or after January&#160;1, 2009, was on the basis of the amended purchase accounting guidance. The net of the acquisition-date amount of the identifiable asset acquired, equity instruments issued, and liabilities assumed is measured at fair value on the acquisition date. Any contingent purchase price, and contingent assets and liabilities are recorded at fair value on the acquisition date, regardless of the likelihood of payment and acquisition-related transaction costs are expensed as incurred. Restructuring costs relating to the acquired business are expensed as incurred. Acquired in-process research and development (&#8220;IPR&#038;D&#8221;) costs are no longer written off to earnings upon the acquisition; instead, IPR&#038;D is capitalized and recorded as an intangible asset on the acquisition date, subject to impairment testing until the research or development is completed or abandoned. The excess of the aggregate of the consideration transferred and the fair value of any noncontrolling interest in the acquiree over the net of the acquisition-date amount of the identifiable assets acquired and liabilities assumed is recorded as goodwill. In case of a bargain purchase, the Company reassesses whether it has correctly identified all of the assets acquired and all of the liabilities assumed; the noncontrolling interest in the acquiree, if any; the Company&#8217;s previously held equity interest in the acquiree, if any; and the consideration transferred. If after this review, a bargain purchase is still indicated, it is recognized in earnings attributed to the Company. The purchase of additional interests in a partially owned subsidiary is treated as an equity transaction as well as all transactions concerning the sale of subsidiary stock or the issuance of stock by the partially owned subsidiary as long as there is no change in control of the subsidiary. 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These schemes conform to local regulations and practices in the countries in which the Company operates. They are generally funded through payments to insurance companies, trustee-administered funds or state institutions, determined by periodic actuarial calculations. Such plans include both defined benefit and defined contribution plans. A defined benefit plan is a pension plan that defines the amount of pension benefit that an employee will receive on retirement, usually dependent on one or more factors such as age, years of service and compensation. 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The entitlement to these benefits is usually conditional on the employee completing a minimum service period. The expected costs of these benefits are accrued over the period of employment using an accounting methodology similar to that for defined benefit pension plans. Actuarial gains and losses arising from experience adjustments, and changes in actuarial assumptions, are charged or credited to earnings in the period of change. 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The shares are granted for free to employees and at their nominal value for the members of the Supervisory Board. The awards granted to employees contingently vest upon achieving certain market or performance conditions and upon completion of an average three-year service period. Shares granted to the Supervisory Board vest unconditionally along the same vesting period as employees and are not forfeited even if the service period is not completed. The Company measures the cost of share-based service awards based on the grant-date fair value of the award. That cost is recognized over the period during which an employee is required to provide service in exchange for the award or the requisite service period, usually the vesting period. Compensation is recognized only for the awards that ultimately vest. The compensation cost is recorded through earnings over the vesting period against equity, under &#8220;Capital surplus&#8221; in the consolidated statement of changes in equity. 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The Company retains control over the pledged debt securities and consequently does not de-recognize the financial assets from its consolidated balance sheet upon transfer of the collateral. The Company accounts for such transactions as secured borrowings and recognizes the cash received upon transfer by recording a liability for the obligation to return the cash to the lending financial institution within a term which does not exceed three months. Such obligation is extinguished when the Company repurchases the pledged securities in accordance with the terms of the repurchase agreements. </div> <div style="margin-top: 12pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b><font style="font-family: 'Times New Roman', Times">2.22&#160;&#8212; Share capital</font></b> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Ordinary shares are classified as equity. 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Where such shares are subsequently sold or reissued, any consideration received net of directly attributable incremental transaction costs and the related income tax effect is included in equity. </div> <div style="margin-top: 12pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b><font style="font-family: 'Times New Roman', Times">2.23&#160;&#8212; Comprehensive income (loss)</font></b> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Comprehensive income (loss) is defined as the change in equity of a business during a period except those changes resulting from investment by shareholders and distributions to shareholders. 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Provisions are not recognized for future operating losses. Where there are a number of similar obligations, the likelihood that an outflow will be required in settlements is determined by considering the class of obligations as a whole. A provision is recognized even if the likelihood of the outflow with respect to any one item included in the same class of obligations may be small. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The Company, when acting as a guarantor, recognizes, at the inception of a guarantee, a liability for the fair value of the obligation the Company assumes under the guarantee. When the guarantee is issued in conjunction with the formation of a partially owned business or a venture accounted for under the equity method, the recognition of the liability for the guarantee results in an increase to the carrying amount of the investment. 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This guidance amends the impairment guidance for certain debt securities and requires an investor to assess the likelihood of selling the security prior to recovering its cost basis. If an investor is able to meet the criteria to assert that it will not have to sell the security before recovery, impairment charges related to credit losses, or the inability to collect cash flows sufficient to amortized cost basis, would be recognized in earnings, while impairment charges related to non-credit losses would be reflected in other comprehensive income. The guidance, which is effective for interim and annual periods ending after June&#160;15, 2009, with early adoption permitted for periods ending after March&#160;15, 2009 required adoption through a cumulative effect adjustment. It also requires additional disclosures for both annual and interim periods on debt and equity securities. 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The guidance also includes a new required disclosure of the date through which an entity has evaluated subsequent events. The guidance is effective for interim and annual periods ending after June&#160;15, 2009 and was adopted by the Company in the second quarter of 2009 with no material impact on the consolidated financial statements. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> In June 2009, the U.S.&#160;Securities and Exchange Commission (SEC) issued Staff Accounting Bulletin&#160;No.&#160;112 (&#8220;SAB&#160;112&#8221;), which updates and amends the SEC staff&#8217;s previous interpretive guidance relating to business combinations and noncontrolling interests. 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It is structured by accounting topic to identify the guidance that applies to a specific accounting issue. The Codification is effective for financial statements that cover interim and annual periods ending after September&#160;15, 2009. The Company has adopted the Codification in its interim consolidated financial statements for the period ending September&#160;26, 2009. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> In October 2009, the FASB updated the Codification to provide share lenders with guidance on how to account for own-share lending arrangements. Specifically, a share lender should record as debt issuance cost the fair value of a share lending arrangement. The outstanding shares should be excluded from basic and diluted earnings per share, unless the counterparty defaults. When a default is probable, expense should be recognized with an offset to equity for the fair value of the shares less estimated recoveries. The guidance is effective for new share lending arrangements for interim and annual periods beginning on or after June&#160;15, 2009. For existing arrangements, the guidance is effective for fiscal years beginning on or after December&#160;15, 2009 and must be applied retrospectively for arrangements outstanding as of the effective date. The Company does not hold any share lending arrangements and thus the guidance did not have any impact on the Company&#8217;s financial position and results of operations upon adoption. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> In October 2009, the FASB also released clarifying guidance on arrangements with multiple deliverables. The new guidance requires companies to allocate arrangement consideration in multiple deliverable arrangements in a manner that better reflects the transaction&#8217;s economics through the use of relative fair values based on either vendor specific objective evidence or third party evidence of fair values. If neither of these is available, the guidance requires the use of management&#8217;s best estimate of selling price. The residual method of allocating arrangement consideration is no longer permitted. The new guidance also removes non-software components of tangible products and certain software components of tangible products from the scope of existing software revenue guidance. It finally requires expanded qualitative and quantitative disclosures. The new guidance is effective for fiscal years beginning on or after June&#160;15, 2010, with early adoption permitted as early as interim periods ended September&#160;30, 2009. The guidance may be applied either prospectively from the beginning of the fiscal year for new or materially modified arrangements or retrospectively. The Company has early adopted the guidance on a prospective basis, with effect as of January&#160;1, 2009. The adoption resulted in no material effects to the Company&#8217;s financial position, timing of revenue recognition, units of accounting, allocation of consideration or results of operations and does not result in the restatement of any prior interim periods. </div> <div style="margin-top: 12pt; font-size: 1pt">&#160; </div> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff; text-align: left"> <tr> <td width="3%"></td> <td width="97%"></td> </tr> <tr valign="top"> <td> <i><font style="font-family: 'Times New Roman', Times">(b)&#160;</font></i> </td> <td> <i><font style="font-family: 'Times New Roman', Times">Accounting pronouncements expected to impact the Company&#8217;s operations that are not yet effective and have not been adopted early by the Company</font></i> </td> </tr> </table> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> In June 2009, the FASB issued amendments to the guidance on accounting for transfers of financial assets and the guidance on consolidation of variable interest entities. The amendment regarding accounting for transfers of financial assets includes: (i)&#160;eliminating the qualifying special-purpose entity (&#8220;QSPE&#8221;) concept; (ii)&#160;a new unit of account definition that must be met for transfers of portions of financial assets to be eligible for sale accounting; (iii)&#160;clarifications and changes to the derecognition criteria for a transfer to be accounted for as a sale; (iv)&#160;a change to the amount of recognized gain or loss on a transfer of financial assets accounted for as a sale when beneficial interests are received by the transferor, and (v)&#160;extensive new disclosures. The amendment regarding consolidation of variable interest entities includes: (i)&#160;the elimination of exemption for QSPEs; (ii)&#160;a new approach for determining who should consolidate a variable-interest entity and (iii)&#160;changes to when it is necessary to reassess who should consolidate a variable-interest entity. Both amendments are effective as of the beginning of an entity&#8217;s first fiscal year beginning after November&#160;15, 2009 and for interim periods within that first year. Earlier adoption is prohibited. The Company will adopt the amendments as of January&#160;1, 2010 and does not expect any significant impact on the Company&#8217;s financial position and results of operations. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> In September 2009, the FASB issued final guidance on measuring the fair value of liabilities. It amends the Codification primarily as follows: (i)&#160;it sets forth the types of valuation techniques to be used to value a liability when a quoted price in an active market is not available; (ii)&#160;clarifies that when estimating the fair value of a liability, a reporting entity is not required to include a separate input or adjustment to other inputs relating to the existence of a restriction that prevents the transfer of the liability; (iii)&#160;clarifies that both a quoted price in an active market for the identical liability at the measurement date and the quoted price for the identical liability when traded as an asset in an active market when no adjustments to the quoted price of the asset are required are Level&#160;1 fair value measurements. The amended guidance is effective for the first reporting period beginning after issuance. 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</td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>340</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -8pt; margin-left: 8pt"> Aaa debt securities issued by foreign governments </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 670 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (543 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 14 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; 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</td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 14 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>1,074 </b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> </table> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div style="font-size: 1pt; margin-left: 0%; width: 13%; align: left; border-bottom: 1pt solid #000000"> </div> <div style="margin-top: 3pt; font-size: 1pt">&#160; </div> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff; text-align: left"> <tr> <td width="1%"></td> <td width="1%"></td> <td width="98%"></td> </tr> <tr> <td valign="top"> <font style="font-size: 8pt">* </font></td> <td></td> <td valign="bottom"> <font style="font-size: 8pt">Other Comprehensive Income </font></td> </tr> </table> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The floating rate notes and the government bonds are reported as current assets on the line &#8220;Marketable Securities&#8221; on the consolidated balance sheet as at December&#160;31, 2009, since they represent investments of funds available for current operations. The auction-rate securities, which have a final maturity up to 40&#160;years, were purchased in the Company&#8217;s account by Credit Suisse Securities LLC contrary to the Company&#8217;s instructions; they are classified as non-current assets on the line &#8220;Non-current marketable securities&#8221; on the consolidated balance sheet as at December&#160;31, 2009. On February&#160;16, 2009, the Company announced that an arbitration panel of the Financial Industry Regulatory Authority (&#8220;FINRA&#8221;), in a full and final resolution of the issues submitted for determination, awarded the Company, in connection with such unauthorized auction rate securities, approximately $406&#160;million, comprising compensatory damages, as well as interest, attorney&#8217;s fees and consequential damages, which were assessed against Credit Suisse. In addition, the Company is entitled to retain an interest award of approximately $27&#160;million, out of which $25&#160;million has already been paid, plus interest at the rate of 4.64% on the par value of the portfolio from December&#160;31, 2008 until the award is paid in full. The Company has petitioned the United States District Court for the Southern District of New York seeking enforcement of the award. Credit Suisse has responded by seeking to vacate the FINRA award. Upon receipt of the award, the Company will transfer ownership of the portfolio of unauthorized auction rate securities to Credit Suisse. Until the award is executed, the Company will continue to own the Auction Rate Securities and, consequently, will account for them in the same manner as in the prior periods. In December 2009, Credit Suisse, because of its contingent interest in certain securities held by us and issued by Deutsche Bank, requested that we either tender the securities or accept that the amount that would be received by us pursuant to such tender ($75&#160;million) be deducted from the sum to be collected by us if and when the FINRA award is confirmed and enforced. Pursuant to legal advice, and while reserving our legal rights, we participated in the tender offer and paid $0.49 per dollar of face value. As a result, we sold Auction Rate Securities with a face value of $154&#160;million, collected $75&#160;million and registered $68&#160;million as realized losses on financial assets. Losses as a result of this transaction should be recovered upon collection of the award. The Company is seeking confirmation of the award from the United States District Court of the Southern District of New&#160;York. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> No significant gain or loss was included in earnings as a result of floating rate notes sales. Out of the fifteen investment positions in floating-rate notes, with the only exception of a senior floating rate note of Euro&#160;15&#160;million issued by Lehman Brothers whose impairment was recorded as other-than-temporary in 2008, nine positions are in an unrealized loss position, which has been considered as temporary. For all floating rate notes, except the Lehman Brothers senior unsecured bonds described below, the Company expects to recover the debt securities&#8217; entire amortized cost basis. Since the duration of the floating rate note portfolio is less than two years on average and the securities have a minimum Moody&#8217;s rating of A3 (with the only exception of the Lehman Brothers senior unsecured bonds), the Company expects the value of the securities to return to par as the final maturity is approaching. In addition, the Company does not expect to be required to sell the securities before maturity. As such, no credit loss has been identified on these instruments. Thus, under the new clarifying guidance on other-than-temporary impairments issued in April 2009, as described in details in Note&#160;2.25, these declines in fair value are considered as temporary. As a result, the change in fair value is recognized as a separate component of &#8220;Accumulated other comprehensive income (loss)&#8221; in the consolidated statements of changes in equity and no cumulative effect adjustment was recorded in 2009 upon adoption of such guidance. The Company estimated the fair value of these financial assets based on publicly quoted market prices, which corresponds to a level&#160;1 fair value measurement hierarchy. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> For the Lehman Brothers senior unsecured bonds, the Company has been measuring fair value since Lehman Brothers Chapter&#160;11 filing on September&#160;15, 2008 based on information received from a major credit rating entity. Such fair value information relies on historical recovery rates and is assessed to correspond to a level&#160;3 fair value hierarchy. At the date of Lehman Brothers Chapter&#160;11 filing, the Company did not expect to recover the entire amortized cost basis of the securities and reported in earnings an other-than-temporary impairment charge representing 50% of the face value of the debt securities. Since all of this other-than-temporary impairment charge corresponded to credit losses, no cumulative effect adjustment was recorded in 2009 upon adoption of the new accounting guidance on recognition and presentation of other-than-temporary impairment charges. As at December&#160;31, 2009, the Company assessed that it expected to recover the impaired amortized cost basis of the Lehman Brothers debt securities amounting to $11&#160;million and no additional other-than-temporary impairment charge was recorded on the Lehman Brothers senior unsecured bonds in 2009. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The Company invested in 2009 $1,730&#160;million in French and U.S.&#160;government bonds, of which $1,263&#160;million was sold or matured in 2009. In 2009, the Company realized in earnings a $14&#160;million exchange gain upon the sale of Euro&#160;100&#160;million French Government bonds. The change in fair value of the $484&#160;million government debt securities classified as available-for-sale was not material as at December&#160;31, 2009. The Company estimated the fair value of these financial assets based on publicly quoted market prices, which corresponds to a level&#160;1 fair value measurement hierarchy. The duration of the government bonds portfolio is less than five months on average and the securities are rated Aaa by Moody&#8217;s. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Until the FINRA award is executed, the ownership of the auction-rate securities must be considered as a separate unit of accounting for impairment assessment. Consequently, upon adoption of the new accounting guidance on recognition and presentation of other-than-temporary impairment charges, the Company determined that in the assumption that the FINRA award was not executed the Company would not expect to recover the entire amortized cost basis of the securities resulting in an impairment of the securities based on credit losses. Consequently, the Company reported an other-than-temporary decline in fair value amounting to $72&#160;million in 2009, which was immediately reported in the consolidated statement of income on the line &#8220;Other-than-temporary impairment charge on financial assets&#8221;. As this impairment assessment was in line with past accounting practice, no cumulative effect adjustment was recorded in 2009 upon adoption of the new accounting guidance. From the first quarter of 2008, the fair value measure of these securities, which corresponds to a level&#160;3 fair value hierarchy, was based on a theoretical model using yields obtainable for comparable assets. The value inputs for the evaluation of these securities were publicly available indexes of securities with the same rating, similar duration and comparable/similar underlying collaterals or industries exposure (such as ABX for the collateralized debt obligation, ITraxx and IBoxx for the credit-linked notes), which the Company believes approximates the orderly exit value in the current market. In 2009, the value of the remaining ARS securities increased in value by $15&#160;million, which has been recorded as a separate component of &#8220;Accumulated other comprehensive income (loss)&#8221; in the consolidated statements of changes in equity. The estimated value of these securities could further decrease due to a deterioration of the corporate industry indexes used for the evaluation. 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The Company obtained a third party independent appraisal to assist in making its purchase price allocation although the Company takes full responsibility for such allocation. </div> <div style="margin-top: 12pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b><font style="font-family: 'Times New Roman', Times">NXP Wireless</font></b> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> On August&#160;2, 2008, ST-NXP Wireless, a joint venture owned 80% by the Company, began operations based on contributions of the wireless businesses of the Company and NXP, as the noncontrolling interest holder. The Company paid to NXP $1.55&#160;billion for the 80% stake, which included a control premium, and received cash from the NXP businesses of $33&#160;million. The consideration also included a contribution in kind, measured at fair value, corresponding to a 20% interest in the Company&#8217;s wireless business. Additional direct costs associated with the acquisition amounted to $21&#160;million and were fully paid as at December&#160;31, 2009. On closing, ST-NXP Wireless was determined to be included in the Wireless segment. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Purchase price allocation resulted in the recognition of $308&#160;million in property, plant and equipment, $72&#160;million of tax receivables net of valuation allowances, inventory of $282&#160;million which includes $88&#160;million of <font style="white-space: nowrap">step-up</font> in value that increased charges against earnings in 2008 as the inventory was sold, deferred tax liabilities of $14&#160;million, restructuring reserves of $44&#160;million and $42&#160;million in liabilities, net of other assets. In addition, intangible assets recognized included core technologies of $223&#160;million, customer relationships of $405&#160;million, and acquired IP R&#038;D of $76&#160;million. Such IP R&#038;D did not have any alternative future use and was written-off immediately in the consolidated statement of income in 2008 to the line &#8220;Research and development.&#8221; The resulting goodwill in the transaction was $669&#160;million at acquisition date. During 2009 the Company made final adjustments to the acquisition related goodwill and reduced its value by $12&#160;million with offsetting adjustments in property, plant and equipment, tax receivables and net other assets and liabilities. The goodwill deductible for tax purposes amounts to approximately $108&#160;million. The core technologies have useful lives ranging from approximately three and a half to six and a half years and the customer relationships&#8217; average useful lives were estimated at 12&#160;years. To assist in making the purchase price allocation for the contribution from the noncontrolling interest holder, the Company obtained a third party independent appraisal although the Company remains fully responsible for the allocation. The contribution by the Company was carried over at its book value. The restructuring reserves represent estimated redundancy costs incurred to achieve the rationalization of the combined organization as anticipated as part of the transaction and cover approximately 500&#160;people, including <font style="white-space: nowrap">sub-contractors.</font> The plan affects mainly employees in Belgium, China, Germany, India, the Netherlands, Switzerland and the United States of America. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> On February&#160;1, 2009, the Company exercised its option to purchase the 20% noncontrolling interest of NXP in ST-NXP wireless for a price of $92&#160;million. Transactions with noncontrolling interests are summarized in the table below: </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <table border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff; text-align: left"> <!-- Table Width Row BEGIN --> <tr style="font-size: 1pt" valign="bottom"> <td width="77%">&#160;</td><!-- colindex=01 type=maindata --> <td width="2%">&#160;</td><!-- colindex=02 type=gutter --> <td width="4%" align="right">&#160;</td><!-- colindex=02 type=lead --> <td width="1%" align="right">&#160;</td><!-- colindex=02 type=body --> <td width="4%" align="left">&#160;</td><!-- colindex=02 type=hang1 --> <td width="3%">&#160;</td><!-- colindex=03 type=gutter --> <td width="4%" align="right">&#160;</td><!-- colindex=03 type=lead --> <td width="1%" align="right">&#160;</td><!-- colindex=03 type=body --> <td width="4%" align="left">&#160;</td><!-- colindex=03 type=hang1 --> </tr> <!-- Table Width Row END --> <!-- TableOutputHead --> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="center" valign="bottom"> &#160; 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</td> <td> &#160; </td> <td colspan="7" align="center" valign="bottom"> <b>In millions of U.S. dollars</b> </td> </tr> <tr style="line-height: 3pt; font-size: 1pt"> <td>&#160; </td> </tr> <!-- TableOutputBody --> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Net loss attributable to parent company </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(1,131</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (786 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Transfers (to) from noncontrolling interests: </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 20pt"> Increase in parent company&#8217;s capital surplus for purchase of outstanding 20% of ST-NXP shares </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>119</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> <b>Change from net loss attributable to parent company and transfers (to) from noncontrolling interests</b> </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(1,012</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (786 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> </tr> </table> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> </div> <div style="margin-top: 12pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b><font style="font-family: 'Times New Roman', Times">Ericsson Mobile Platforms</font></b> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> On February&#160;3, 2009, the Company closed a transaction to combine the businesses of Ericsson Mobile Platforms (&#8220;EMP&#8221;) and ST-NXP Wireless into a new venture, ST-Ericsson. ST-Ericsson combines the resources of the two companies and focuses on developing and delivering a complete portfolio of mobile platforms wireless semiconductor solutions across the broad spectrum of mobile technologies. The operations of ST-Ericsson are conducted through two groups of companies. The parent of one of the groups is ST-Ericsson Holding AG (&#8220;JVS&#8221;), which is owned 50% plus a controlling share by ST. JVS is responsible for the full commercial operation of the combined businesses, namely sales, marketing, supply and the full product responsibility. The parent of the other group, ST-Ericsson AT Holding AG (&#8220;JVD&#8221;), is owned 50% plus a controlling share by Ericsson and is focused on fundamental R&#038;D activities. Both JVS and JVD are variable interest entities. The Company has determined that it is the primary beneficiary of JVS and therefore consolidates JVS, but that it is not the primary beneficiary of JVD and therefore accounts for its noncontrolling interest in JVD under the equity method of accounting. JVD is discussed further in Note&#160;11. In addition to the contributions by ST and Ericsson of their respective businesses to the venture entities, the consideration received from Ericsson included $1,155&#160;million in cash, of which $700&#160;million was paid directly to the Company. 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margin-left: 10pt"> <u>Consideration transferred:</u> </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Noncontrolling interest in the Company&#8217;s business contributed </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 1,105 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Cash received by the Company </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (700 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Equity investment in JVD </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (99 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> </tr> <tr valign="bottom" style="font-size: 1pt"> <td> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> <b>Total consideration transferred</b> </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>306</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> <b>Acquisition related costs included in SG&#038;A</b> </div> </td> <td> &#160; 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</td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> <b>Total identifiable net assets</b> </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>469</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Noncontrolling interest in EMP business acquired </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (306 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Goodwill </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; 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It is tax deductible for an amount of $26&#160;million. In connection with this transaction, the Company recognized acquisition costs of $9&#160;million, which were included in selling, general and administrative expenses in 2009. The customer relationships have a useful life of four years. There are no contingent assets or liabilities recognized in the transaction. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The fair value of the noncontrolling interests was determined by the Company with the assistance of a third party evaluation of the fair values of the businesses contributed. Due to lack of comparable market transactions, the EMP business was valued using a discounted cash flow approach. The primary inputs used to measure the fair value were the stand alone business plan for the five-year period <font style="white-space: nowrap">2009-2013,</font> including certain cost synergies of the venture, and the weighted average cost of capital, which was determined to be 8.9%. This represents a Level&#160;3 measurement of fair value in the fair value measurement hierarchy. The resulting value of the EMP business was then allocated between the two entities of the venture as follows: (a)&#160;specifically identifiable assets as well as customer-related intangibles and the cost synergies were allocated to the portion of the EMP business contributed to JVS, and (b)&#160;specifically identifiable assets as well as the value of the usage rights of the technology were allocated to the portion of the EMP business contributed to JVD. The fair value of the Company&#8217;s contribution of its ST-NXP Wireless business to JVS was determined based upon the valuation of the EMP business contributed to JVS and JVD and the cash consideration that was agreed upon between the Company and Ericsson to compensate for the difference in fair values between the two companies&#8217; contributions. This valuation is therefore also considered Level&#160;3. Due to the significant minority rights of the Company and Ericsson in JVD and JVS respectively, no control premium or discount was assigned in the valuation of the noncontrolling interests. Upon closing, JVS was determined to be included in the reportable segment &#8220;Wireless&#8221;. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The unaudited proforma information below assumes that JVS was created on January&#160;1, 2009 and 2008 and incorporates the results of JVS beginning on those dates. The unaudited twelve months ended December&#160;31, 2009 and December&#160;31, 2008 information has been adjusted to incorporate the results of JVS on January&#160;1, 2009 and January&#160;1, 2008. Such results include estimated results of the business acquired, adjustments to conform to the Company&#8217;s accounting policies, additional depreciation and amortization resulting from the step up to the fair values of the tangible and intangible assets, consequential tax effects and noncontrolling interest adjustments. These amounts are presented for information purposes only and are not indicative of the results of operations that would have been achieved had the acquisition taken place as of January&#160;1, 2009 and January&#160;1, 2008. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <table border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff; text-align: left"> <!-- Table Width Row BEGIN --> <tr style="font-size: 1pt" valign="bottom"> <td width="75%">&#160;</td><!-- colindex=01 type=maindata --> <td width="2%">&#160;</td><!-- colindex=02 type=gutter --> <td width="1%" align="right">&#160;</td><!-- colindex=02 type=lead --> <td width="8%" align="right">&#160;</td><!-- colindex=02 type=body --> <td width="1%" align="left">&#160;</td><!-- colindex=02 type=hang1 --> <td width="3%">&#160;</td><!-- colindex=03 type=gutter --> <td width="1%" align="right">&#160;</td><!-- colindex=03 type=lead --> <td width="8%" align="right">&#160;</td><!-- colindex=03 type=body --> <td width="1%" align="left">&#160;</td><!-- colindex=03 type=hang1 --> </tr> <!-- Table Width Row END --> <!-- TableOutputHead --> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="center" valign="bottom"> &#160; 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</td> <td> &#160; </td> <td colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>Twelve Months Ended</b> </td> <td> &#160; </td> </tr> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>December&#160;31,<br /> </b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>December&#160;31,<br /> </b> </td> <td> &#160; </td> </tr> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px"> <b>Statements of Income, as reported</b> </div> </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>2009</b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>2008</b> </td> <td> &#160; 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Additionally, at the beginning of the third quarter of 2009, the Company made final adjustments to the NXP business combination and decreased goodwill by $12&#160;million. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> In 2008, the Company acquired 100% of Genesis Microchip Inc. and 80% of the NXP wireless business. Amounts of $15&#160;million and $669&#160;million, respectively, of the purchase price for these two transactions were allocated to goodwill. 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This impairment charge is further described in Note&#160;19. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> In the third quarter of 2009 and 2008, the Company performed its annual impairment test on goodwill and indefinite long-lived assets, which did not evidence any additional impairment charge to be recorded in 2009 and charges totaling $13&#160;million were recorded on the line &#8220;Impairment, restructuring charges and other related closure costs&#8221; of the consolidated statement of income for the year ended December&#160;31, 2008. 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</td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(61</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>18</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Facilities&#160;&#038; leasehold improvements </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>3,158</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(2,332</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> <td> &#160; 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</td> <td nowrap="nowrap" align="right" valign="bottom"> <b>252</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(146</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>106</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Construction in progress </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>106</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; 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</td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> </tr> </table> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> </div> <div style="margin-top: 12pt; font-size: 1pt">&#160; </div> <table border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff; text-align: left"> <!-- Table Width Row BEGIN --> <tr style="font-size: 1pt" valign="bottom"> <td width="74%">&#160;</td><!-- colindex=01 type=maindata --> <td width="2%">&#160;</td><!-- colindex=02 type=gutter --> <td width="1%" align="right">&#160;</td><!-- colindex=02 type=lead --> <td width="3%" align="right">&#160;</td><!-- colindex=02 type=body --> <td width="1%" align="left">&#160;</td><!-- colindex=02 type=hang1 --> <td width="3%">&#160;</td><!-- colindex=03 type=gutter --> <td width="1%" align="right">&#160;</td><!-- colindex=03 type=lead --> <td width="7%" align="right">&#160;</td><!-- colindex=03 type=body --> <td width="1%" align="left">&#160;</td><!-- colindex=03 type=hang1 --> <td width="3%">&#160;</td><!-- colindex=04 type=gutter --> <td width="1%" align="right">&#160;</td><!-- colindex=04 type=lead --> <td width="2%" align="right">&#160;</td><!-- colindex=04 type=body --> <td width="1%" align="left">&#160;</td><!-- colindex=04 type=hang1 --> </tr> <!-- Table Width Row END --> <!-- TableOutputHead --> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="left" valign="bottom"> &#160; 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</td> </tr> <tr style="line-height: 3pt; font-size: 1pt"> <td>&#160; </td> </tr> <!-- TableOutputBody --> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Land </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 89 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 89 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Buildings </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 1,001 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (264 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 737 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Capital leases </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 68 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (53 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 15 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Facilities&#160;&#038; leasehold improvements </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 3,153 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (2,115 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; 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</td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (127 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 60 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Construction in progress </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 49 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; 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</td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> </tr> </table> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> As described in note&#160;7, an amount of $23&#160;million of the purchase price for the business of Ericsson Mobile Platforms (&#8220;EMP&#8221;) was allocated to property, plant and equipment. </div> <div style="margin-top: 6pt; 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</div> <div align="left" style="margin-left: 6%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <i><font style="font-family: 'Times New Roman', Times">Numonyx</font></i> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> In 2007, the Company entered into an agreement with Intel Corporation and Francisco Partners L.P. to create a new independent semiconductor company from the key assets of the Company&#8217;s Flash Memory Group and Intel&#8217;s flash memory business (&#8220;FMG deconsolidation&#8221;). Under the terms of the agreement, the Company would sell its flash memory assets, including its NAND joint venture interest with Hynix as described below and other NOR resources, to the new company, which was called Numonyx Holdings B.V. (&#8220;Numonyx&#8221;), while Intel would sell its NOR assets and resources. In connection with this announcement, the Company reported in 2007 an impairment charge of $1,106&#160;million to adjust the value of these assets to fair value less costs to sell. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The Numonyx transaction closed on March&#160;30, 2008. At closing, through a series of steps, the Company contributed its flash memory assets and businesses as previously announced, for 109,254,191 common shares of Numonyx, representing a 48.6% equity ownership stake valued at $966&#160;million, and $156&#160;million in long-term subordinated notes, as described in Note&#160;12. As a consequence of the final terms and balance sheet at the closing date and additional agreements on assets to be contributed, coupled with changes in valuation for comparable Flash memory companies, the Company incurred an additional pre-tax loss of $190&#160;million for the year ended December&#160;31, 2008, which was reported on the line &#8220;Impairment, restructuring charges and other related closure costs&#8221; of the consolidated statement of income. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Upon creation, Numonyx entered into financing arrangements for a $450&#160;million term loan and a $100&#160;million committed revolving credit facility from two primary financial institutions. The loans have a four-year term. Intel and the Company have each granted in favor of Numonyx a 50% debt guarantee not joint and several. In the event of default, the banks will exercise the Company&#8217;s rights, subordinated to the repayment to senior lenders, to recover the amounts paid under the guarantee through the sale of the assets. The debt guarantee was evaluated under the FASB guidance on guarantee liabilities. It resulted in the recognition of a $69&#160;million liability, corresponding to the fair value of the guarantee at inception of the transaction. The same amount was also added to the value of the equity investment. The debt guarantee obligation was reported on the line &#8220;Other non-current liabilities&#8221; in the consolidated balance sheet as at December&#160;31, 2009 and 2008. As at December&#160;31, 2009, the guarantee was not exercised. 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For the year ended December&#160;31, 2009 the Company reported on the line &#8220;Earnings (loss) on equity investments&#8221; on the Company&#8217;s consolidated statement of income $171&#160;million of equity loss in Numonyx equity investment, that represents the Company&#8217;s proportional share of the loss reported by Numonyx in the fourth quarter of 2008 and the three first quarters of 2009, a benefit of $69&#160;million related to the amortization of basis differences arising principally from impairment charges recorded by the Company in prior periods. Furthermore, the Company evaluates on a quarterly basis the fair value of the investment in Numonyx based upon a combination of (i)&#160;an income approach, using net equity adjusted for net debt, and (ii)&#160;a market approach, using the metrics of comparable public companies, both in relation to actual results and the most updated available forecast. 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</div> <div align="left" style="margin-left: 6%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <i><font style="font-family: 'Times New Roman', Times">ST-Ericsson AT Holding</font></i> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> As disclosed in Note&#160;7, on February&#160;3, 2009, the Company announced the closing of a transaction to combine the businesses of Ericsson Mobile Platforms (&#8220;EMP&#8221;) and ST-NXP Wireless into a new venture, named <font style="white-space: nowrap">ST-Ericsson.</font> As part of the transaction, the Company received an interest in ST-Ericsson AT Holding AG (&#8220;JVD&#8221;). JVD, in which the Company owns 50% less a controlling share held by Ericsson, is the parent company of a group of entities that perform fundamental R&#038;D activities for the ST-Ericsson venture. The Company has determined that JVD is a variable interest entity, but has determined that the Company is not the primary beneficiary of the entity. Accordingly, the Company accounts for its noncontrolling interest in JVD under the equity method of accounting. The Company&#8217;s investment in JVD at the date of the transaction was valued at $99&#160;million. In 2009, the line &#8220;Loss on equity investments&#8221; in the Company&#8217;s consolidated statement of income included a charge of $32&#160;million related to JVD. This amount includes the amortization of basis differences. 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Under the agreement, Hynix Semiconductor Inc. contributed $500&#160;million for a 67% equity interest and the Company contributed $250&#160;million for a 33% equity interest. Additionally, the Company originally committed to grant $250&#160;million in long-term financing to the new joint venture guaranteed by the subordinated collateral of the joint venture&#8217;s assets. On March&#160;30, 2008, the investment in the joint venture, which amounted to $291&#160;million at the time, was transferred to Numonyx upon the formation of that entity. Due to regulatory and withholding tax issues the Company could not directly provide the joint venture with the $250&#160;million long-term financing as originally planned. As a result, in 2006, the Company entered into a ten-year term debt guarantee agreement with an external financial institution through which the Company guaranteed the repayment of the loan by the joint venture to the bank. The guarantee agreement includes the Company placing up to $250&#160;million in cash on a deposit account. The guarantee deposit will be used by the bank in case of repayment failure from the joint venture, with $250&#160;million as the maximum potential amount of future payments the Company, as the guarantor, could be required to make. In the event of default and failure to repay the loan from the joint venture, the bank will exercise the Company&#8217;s rights, subordinated to the repayment to senior lenders, to recover the amounts paid under the guarantee through the sale of the joint venture&#8217;s assets. The $250&#160;million, which has been on deposit since 2007, has been reported as &#8220;Restricted cash&#8221; on the consolidated balance sheet as at December 2009 and 2008. The debt guarantee resulted in the recognition of a $17&#160;million liability, corresponding to the fair value of the guarantee at inception of the transaction. The debt guarantee obligation continues to be reported on the line &#8220;Other non-current liabilities&#8221; in the consolidated balance sheet as at December&#160;31, 2009, since the terms of FMG deconsolidation did not include the transfer of the guarantee. As at December&#160;31, 2009, the guarantee was not exercised. To the best of management&#8217;s knowledge as at December&#160;31, 2009, the joint venture was current on their debt obligations, not in default of any debts covenants and did not expect to be in default on these obligations in the foreseeable future. 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In 2009, the Company incurred <font style="white-space: nowrap">other-than-temporary</font> impairment charge on one of its investments for $3&#160;million that was recorded on the line &#8220;Impairment, restructuring charges and other related closure costs&#8221; in the consolidated statements of income for the year ended December&#160;31, 2009. The impairment is based on a review of the valuation of the entity upon liquidation. In 2008, the Company incurred <font style="white-space: nowrap">other-than-temporary</font> impairment charges on two of its investments, which totaled $6&#160;million and were recorded on the line &#8220;Impairment, restructuring charges and other related closure costs&#8221; in the consolidated statements of income for the year ended December&#160;31, 2008. For one investment, the impairment charge was based on the valuation for the underlying investment of a new round of third party financing. For the other one, the valuation at fair value was based on the valuation of the entity upon liquidation. The aggregate carrying amount of cost method investments that the investor did not evaluate for impairment in 2009 and 2008 because there was no triggering event is $29&#160;million and $32&#160;million, respectively. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The Company entered into a joint venture agreement in 2002 with Dai Nippon Printing Co, Ltd for the development and production of Photomask in which the Company holds a 19% equity interest. The joint venture, DNP Photomask Europe S.p.A, was initially capitalized with the Company&#8217;s contribution of &#8364;2&#160;million of cash. Dai Nippon Printing Co, Ltd contributed &#8364;8&#160;million of cash for an 81% equity interest. In the event of the liquidation of the joint-venture, the Company is required to repurchase the land at cost, and the facility at 10% of its net book value, if no suitable buyer is identified. No provision for this obligation has been recorded to date. At December&#160;31, 2009, the Company&#8217;s total contribution to the joint venture is $10&#160;million. The Company continues to maintain its 19% ownership of the joint venture, and therefore continues to account for this investment under the cost method. The Company has identified the joint venture as a Variable Interest Entity (VIE), but has determined that it is not the primary beneficiary of the VIE. 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This decline in fair value was assessed to be temporary as the Company expects to recover the debt securities&#8217; entire amortized cost basis, and, in compliance with the accounting guidance on <font style="white-space: nowrap">other-than-temporary</font> impairment charges on debt securities, it does not intend to sell the securities or is not more likely than not to be required to sell them before recovery. Consequently, no cumulative effect adjustment was recorded upon adoption of the new accounting guidance. Fair value measurement, which corresponds to a level&#160;3 fair value measurement hierarchy, is based on publicly available swap rates for fixed income obligations with similar maturities. 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</td> <td nowrap="nowrap" align="right" valign="bottom"> <b>325</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 319 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Social charges </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>149</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 146 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Taxes other than income taxes </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>80</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 91 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Advances </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>47</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 51 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Payables to equity investments </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>30</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 7 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Obligations for capacity rights </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>21</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 29 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Financial instruments </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>34</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 5 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Provision for restructuring </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>180</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 197 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Pension and long-term benefits </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>30</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 21 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Royalties </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>35</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 14 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Acquisition-related expenses </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>0</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 17 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Others </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>118</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 99 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> <b>Total</b> </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>1,049</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 996 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> </table> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The terms of the agreement for the inception of Numonyx included rights granted to Numonyx to use certain assets retained by the Company. 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The remaining obligations for capacity rights is due to the terms of the agreement for the integration of NXP wireless business that included rights for NXP to obtain products from the Company at preferential pricing. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Other payables and accrued liabilities also include individually insignificant amounts as of December&#160;31, 2009 and December&#160;31, 2008. </div> <!-- XBRL Pagebreak Begin --> </div> <!-- END PAGE WIDTH --> <!-- PAGEBREAK --> <div style="margin-left: 0%"> <!-- BEGIN PAGE WIDTH --> <div style="margin-top: 0pt; font-size: 1pt"> </div> <div align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b> <font style="font-family: 'Times New Roman', Times"> </font> </b> </div> <div style="margin-top: 0pt; font-size: 1pt"> </div> <!-- XBRL Pagebreak End --> </div> <!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <!-- Begin Block Tagged Note 14 - us-gaap:DebtDisclosureTextBlock--> <div style="margin-left: 0%"> <div style="margin-top: 12pt; font-size: 1pt">&#160; </div> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff; text-align: left"> <tr> <td width="5%"></td> <td width="95%"></td> </tr> <tr valign="top"> <td> <b><font style="font-family: 'Times New Roman', Times">14.&#160;&#160;</font></b> </td> <td> <b><font style="font-family: 'Times New Roman', Times">LONG-TERM DEBT</font></b> </td> </tr> </table> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Long-term debt consisted of the following: </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <table border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff; text-align: left"> <!-- Table Width Row BEGIN --> <tr style="font-size: 1pt" valign="bottom"> <td width="75%">&#160;</td><!-- colindex=01 type=maindata --> <td width="2%">&#160;</td><!-- colindex=02 type=gutter --> <td width="1%" align="right">&#160;</td><!-- colindex=02 type=lead --> <td width="8%" align="right">&#160;</td><!-- colindex=02 type=body --> <td width="1%" align="left">&#160;</td><!-- colindex=02 type=hang1 --> <td width="3%">&#160;</td><!-- colindex=03 type=gutter --> <td width="1%" align="right">&#160;</td><!-- colindex=03 type=lead --> <td width="8%" align="right">&#160;</td><!-- colindex=03 type=body --> <td width="1%" align="left">&#160;</td><!-- colindex=03 type=hang1 --> </tr> <!-- Table Width Row END --> <!-- TableOutputHead --> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>December&#160;31,<br /> </b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>December&#160;31,<br /> </b> </td> <td> &#160; </td> </tr> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>2009</b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>2008</b> </td> <td> &#160; </td> </tr> <tr style="line-height: 3pt; font-size: 1pt"> <td>&#160; </td> </tr> <!-- TableOutputBody --> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> <b>Bank loans:</b> </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> 2.10% due 2009, floating interest rate at Libor + 0.40% </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>&#8212;</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 50 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> 1.79% due 2010, floating interest rate at Libor + 1.0% </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>40</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 50 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> <b>Funding program loans:</b> </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; 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</td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 24 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> 3.27% (weighted average), due 2012, fixed interest rate </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>6</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 10 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> 0.50% (weighted average), due 2013, fixed interest rate </div> </td> <td> &#160; 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</td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 72 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> 0.27% due 2014, floating interest rate at Libor + 0.017% </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>100</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 120 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> 0.31% due 2015, floating interest rate at Libor + 0.026% </div> </td> <td> &#160; 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margin-left: 10pt"> 0.57% due 2016, floating interest rate at Libor + 0.317% </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>180</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 180 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> 0.49% due 2016, floating interest rate at Libor + 0.213% </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>200</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 200 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; 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</td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 13 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> 6.00% (weighted average), due 2014, fixed interest rate </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>9</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> 5.29% (weighted average), due 2017, fixed interest rate </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>2</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 2 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> <b>Senior Bonds:</b> </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> 1.12%, due 2013, floating interest rate at Euribor + 0.40% </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>720</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 703 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> <b>Convertible debt:</b> </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> -0.50% convertible bonds due 2013 </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>&#8212;</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> 1.50% convertible bonds due 2016 </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>943</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 1,036 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="font-size: 1pt"> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> <b>Total long-term debt</b> </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>2,492</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 2,677 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Less current portion </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(176</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (123 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> </tr> <tr valign="bottom" style="font-size: 1pt"> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> <b>Total long-term debt, less current portion</b> </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>2,316</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 2,554 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="font-size: 1pt"> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 3px double #000000"> &#160; </td> <td style="border-top: 3px double #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 3px double #000000"> &#160; </td> <td style="border-top: 3px double #000000"> &#160; 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</td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom"> <b>December&#160;31,<br /> </b> </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom"> <b>December&#160;31,<br /> </b> </td> </tr> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>2009</b> </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>2008</b> </td> </tr> <tr style="line-height: 3pt; font-size: 1pt"> <td>&#160; </td> </tr> <!-- TableOutputBody --> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> U.S. dollar </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>1,666</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 1,840 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Euro </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>826</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 837 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Other </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> <b>Total</b> </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>2,492</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 2,677 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> </table> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The European Investment Bank&#8217;s loans denominated in EUR, but drawn in USD, are classified as USD denominated debt. 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</td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>119</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> 2013 </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>836</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> 2014 </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>114</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Thereafter </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>184</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="font-size: 1pt"> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> <b>Total</b> </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>2,492</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="font-size: 1pt"> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 3px double #000000"> &#160; 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Pursuant to the terms of the convertible bonds due 2013, the Company repurchased the largest part of the bonds in August 2006. The outstanding long-term debt corresponding to the 2013 convertible debt was not material as at December&#160;31, 2009 corresponding to the remaining 188 bonds valued at August&#160;5, 2010 redemption price. At any time the Company may redeem for cash at their negative accreted value all or a portion of the remaining convertible bonds subject to the level of the Company&#8217;s share price. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> In February 2006, the Company issued $1,131&#160;million principal amount at maturity of zero coupon senior convertible bonds due in February 2016. The bonds were issued at 100% of principal with a yield to maturity of 1.5% and resulted in net proceeds to the Company of $974&#160;million less transaction fees. The bonds are convertible by the holder at any time prior to maturity at a conversion rate of 43.833898&#160;shares per one thousand dollar face value of the bonds corresponding to 42,694,216 equivalent shares. This conversion rate has been adjusted from 43.363087 shares per one thousand dollar face value of the bonds as at May&#160;21, 2007, as the result of the extraordinary cash dividend approved by the Annual General Meeting of Shareholders held on May&#160;14, 2008. This new conversion has been effective since May&#160;19, 2008. Upon a change of control, the holders can also redeem the convertible bonds on February&#160;23, 2011 at a price of $1,077.58, on February&#160;23, 2012 at a price of $1,093.81 and on February&#160;24, 2014 at a price of $1,126.99 per one thousand dollar face value of the bonds. The Company can call the bonds at any time after March&#160;10, 2011 subject to the Company&#8217;s share price exceeding 130% of the accreted value divided by the conversion rate for 20 out of 30 consecutive trading days. The Company may redeem for cash at the principal amount at issuance plus accumulated gross yield all, but not a portion, of the convertible bonds at any time if 10% or less of the aggregate principal amount at issuance of the convertible bonds remain outstanding in certain circumstances or in the event of changes to the tax laws of the Netherlands or any successor jurisdiction. During December 2009 the Company repurchased 98&#160;thousand bonds corresponding to $106&#160;million principal amount for a total cash consideration of $103&#160;million, realizing a gain on the repurchase of $3&#160;million. During January 2010, the Company repurchased around 200 thousand bonds corresponding to $215&#160;million principal amount for a total cash consideration of $212&#160;million, realizing a gain on the repurchase of $3&#160;million. The total of bonds repurchased in December and January represented approximately 30% of the total amount originally issued. The repurchased bonds have been cancelled in accordance with their terms. In 2006, the Company entered into cancellable swaps with a combined notional value of $200&#160;million to hedge the fair value of a portion of these convertible bonds. As a result of these cancellable swap hedging transactions, which are described further in Note&#160;25, the yield on the $200&#160;million principal amount of the hedged convertible bonds has changed from a nominal interest rate of 1.50% to an effective yield of -0.27% as at November&#160;1, 2008, date on which the fair value hedge relationship was discontinued, as described in Note&#160;6. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> In March 2006, STMicroelectronics Finance B.V. (&#8220;ST BV&#8221;), a wholly owned subsidiary of the Company, issued floating rate senior bonds with a principal amount of &#8364;500&#160;million at an issue price of 99.873%. The notes, which mature on March&#160;17, 2013, pay a coupon rate of the three-month Euribor plus 0.40% on the 17<sup style="font-size: 85%; vertical-align: top">th</sup> of June, September, December and March of each year through maturity. In the event of changes to the tax laws of the Netherlands or any successor jurisdiction, ST BV or the Company may redeem the full amount of senior bonds for cash. In the event of certain change in control triggering events, the holders can cause ST BV or the Company to repurchase all or a portion of the bonds outstanding. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The Company entered in 2008 into repurchase agreements with certain financial institutions and gave as collateral $262&#160;million principal amount of floating rate notes classified as <font style="white-space: nowrap">available-for-sale.</font> The Company retained control over the pledged debt securities and consequently did not de-recognize the financial assets from its consolidated balance sheet upon transfer of the collateral. The Company accounted for such transactions as secured borrowings and recognized the cash received upon transfer by recording a liability for the obligation to return the cash to the lending financial institution within a term which did not exceed 57&#160;days. Such obligation, with a weighted average interest rate of 2.94%, amounted to $249&#160;million and was extinguished during 2008 when the Company repurchased the pledged securities in accordance with the terms of the repurchase agreements. </div> <div style="margin-top: 12pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b><font style="font-family: 'Times New Roman', Times">Credit facilities</font></b> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The Company had unutilized committed medium term credit facilities with core relationship banks totalling $500&#160;million. In addition, the aggregate amount of the Company&#8217;s and its subsidiaries&#8217; total available short-term credit facilities, excluding foreign exchange credit facilities, was approximately $759&#160;million as at December&#160;31, 2009. In addition, ST-Ericsson had $25&#160;million of unutilized committed line from Ericsson as parent company. The Company also had two committed credit facilities with the European Investment Bank as part of R&#038;D funding programs. The first one, for a total of &#8364;245&#160;million for R&#038;D in France was fully drawn in U.S.&#160;dollars for a total amount of $341&#160;million, of which $49&#160;million were paid back as at December&#160;31, 2009. The second one, signed on July&#160;21, 2008, for a total amount of &#8364;250&#160;million for R&#038;D projects in Italy, was fully drawn in U.S.&#160;dollars for $380&#160;million as at December&#160;31, 2009. The Company maintains also uncommitted foreign exchange facilities totalling $714&#160;million at December&#160;31, 2009. 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The defined benefit plans provide for pension benefits, the amounts of which are calculated based on factors such as years of service and employee compensation levels. The other long-term employees&#8217; plans provide for benefits due during the employees&#8217; period of service after certain seniority levels. The Company uses a December 31 measurement date for the majority of its plans. Eligibility is generally determined in accordance with local statutory requirements. For Italian termination indemnity plan (&#8220;TFR&#8221;), generated before July&#160;1, 2007, the Company continues to measure the vested benefits to which Italian employees are entitled as if they retired immediately as of December&#160;31, 2009, in compliance with U.S.&#160;GAAP guidance on determining vested benefit obligations for defined benefit pension plans. </div> <!-- XBRL Pagebreak Begin --> </div> <!-- END PAGE WIDTH --> <!-- PAGEBREAK --> <div style="margin-left: 0%"> <!-- BEGIN PAGE WIDTH --> <div style="margin-top: 0pt; font-size: 1pt"> </div> <div align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b> <font style="font-family: 'Times New Roman', Times"> </font> </b> </div> <!-- XBRL Pagebreak End --> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The changes in benefit obligation and plan assets were as follows: </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <table border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff; text-align: left"> <!-- Table Width Row BEGIN --> <tr style="font-size: 1pt" valign="bottom"> <td width="53%">&#160;</td><!-- colindex=01 type=maindata --> <td width="2%">&#160;</td><!-- colindex=02 type=gutter --> <td width="4%" align="right">&#160;</td><!-- colindex=02 type=lead --> <td width="1%" align="right">&#160;</td><!-- colindex=02 type=body --> <td width="4%" align="left">&#160;</td><!-- colindex=02 type=hang1 --> <td width="3%">&#160;</td><!-- colindex=03 type=gutter --> <td width="4%" align="right">&#160;</td><!-- colindex=03 type=lead --> <td width="1%" align="right">&#160;</td><!-- colindex=03 type=body --> <td width="4%" align="left">&#160;</td><!-- colindex=03 type=hang1 --> <td width="3%">&#160;</td><!-- colindex=04 type=gutter --> <td width="4%" align="right">&#160;</td><!-- colindex=04 type=lead --> <td width="1%" align="right">&#160;</td><!-- colindex=04 type=body --> <td width="4%" align="left">&#160;</td><!-- colindex=04 type=hang1 --> <td width="3%">&#160;</td><!-- colindex=05 type=gutter --> <td width="4%" align="right">&#160;</td><!-- colindex=05 type=lead --> <td width="1%" align="right">&#160;</td><!-- colindex=05 type=body --> <td width="4%" align="left">&#160;</td><!-- colindex=05 type=hang1 --> </tr> <!-- Table Width Row END --> <!-- TableOutputHead --> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="center" valign="bottom"> &#160; 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</td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 20 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>4</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 4 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Interest cost </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>25</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; 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</td> <td nowrap="nowrap" align="right" valign="bottom"> (1 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Actuarial (gain) loss </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>29</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 15 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(1</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 1 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Transfer in </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>12</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 70 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>1</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 8 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Transfer out </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(5</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (53 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(1</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (5 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Plan amendment </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (3 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Foreign currency translation adjustment </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>23</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (46 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>1</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (3 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> </tr> <tr valign="bottom"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> <b>Benefit obligation at end of year</b> </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>654</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 587 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>43</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 42 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> <b>Change in plan assets:</b> </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Plan assets at fair value at beginning of year </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>262</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 278 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Expected return on plan assets </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>16</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 18 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Employer contributions </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>46</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 16 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Employee contributions </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>5</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 2 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Benefits paid </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(13</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (11 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Effect of settlement </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(14</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (2 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Actuarial gain (loss) </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>25</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (59 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Transfer in </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>7</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 54 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Transfer out </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(6</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (5 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Foreign currency translation adjustments </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>11</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (28 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Other </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (1 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> <b>Plan assets at fair value at end of year</b> </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>339</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 262 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> <b>Funded status</b> </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(315</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (325 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(43</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (42 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> <b>Net amount recognized in the balance sheet consisted of the following:</b> </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Non current assets </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>2</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 1 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Current liabilities </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(8</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (5 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(9</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (2 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> </tr> <tr valign="bottom"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Non Current liabilities </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(309</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (321 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(34</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (40 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> <b>Net amount recognized</b> </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(315</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (325 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(43</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (42 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> </tr> </table> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The components of accumulated other comprehensive income (loss) before tax effects were as follows: </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <table border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff; text-align: left"> <!-- Table Width Row BEGIN --> <tr style="font-size: 1pt" valign="bottom"> <td width="71%">&#160;</td><!-- colindex=01 type=maindata --> <td width="2%">&#160;</td><!-- colindex=02 type=gutter --> <td width="1%" align="right">&#160;</td><!-- colindex=02 type=lead --> <td width="7%" align="right">&#160;</td><!-- colindex=02 type=body --> <td width="1%" align="left">&#160;</td><!-- colindex=02 type=hang1 --> <td width="3%">&#160;</td><!-- colindex=03 type=gutter --> <td width="1%" align="right">&#160;</td><!-- colindex=03 type=lead --> <td width="7%" align="right">&#160;</td><!-- colindex=03 type=body --> <td width="1%" align="left">&#160;</td><!-- colindex=03 type=hang1 --> <td width="3%">&#160;</td><!-- colindex=04 type=gutter --> <td width="1%" align="right">&#160;</td><!-- colindex=04 type=lead --> <td width="1%" align="right">&#160;</td><!-- colindex=04 type=body --> <td width="1%" align="left">&#160;</td><!-- colindex=04 type=hang1 --> </tr> <!-- Table Width Row END --> <!-- TableOutputHead --> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>Actuarial<br /> </b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>Prior service<br /> </b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> </tr> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>(gains)/losses</b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>cost</b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>Total</b> </td> <td> &#160; </td> </tr> <tr style="line-height: 3pt; 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</td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 74 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (2 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 72 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Amortization </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (3 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (2 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (5 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Foreign currency translation adjustment </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (9 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (9 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> <b>Other comprehensive income as at December&#160;31, 2008</b> </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>74</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>6</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>80</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Net amount generated/arising in current year </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 4 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 4 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Amortization </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (6 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (2 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (8 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Foreign currency translation adjustment </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 4 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 4 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Effect of curtailment/settlement </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (4 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (4 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> <b>Other comprehensive income as at December&#160;31, 2009</b> </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>72</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>4</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>76</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> </table> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> In 2010, we expect to amortize $4&#160;million of actuarial losses and $1&#160;million of past service cost. </div> <!-- XBRL Pagebreak Begin --> </div> <!-- END PAGE WIDTH --> <!-- PAGEBREAK --> <div style="margin-left: 0%"> <!-- BEGIN PAGE WIDTH --> <div style="margin-top: 0pt; font-size: 1pt"> </div> <div align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b> <font style="font-family: 'Times New Roman', Times"> </font> </b> </div> <!-- XBRL Pagebreak End --> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The components of the net periodic benefit cost included the following: </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <table border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff; text-align: left"> <!-- Table Width Row BEGIN --> <tr style="font-size: 1pt" valign="bottom"> <td width="28%">&#160;</td><!-- colindex=01 type=maindata --> <td width="2%">&#160;</td><!-- colindex=02 type=gutter --> <td width="1%" align="right">&#160;</td><!-- colindex=02 type=lead --> <td width="8%" align="right">&#160;</td><!-- colindex=02 type=body --> <td width="1%" align="left">&#160;</td><!-- colindex=02 type=hang1 --> <td width="2%">&#160;</td><!-- colindex=03 type=gutter --> <td width="1%" align="right">&#160;</td><!-- colindex=03 type=lead --> <td width="8%" align="right">&#160;</td><!-- colindex=03 type=body --> <td width="1%" align="left">&#160;</td><!-- colindex=03 type=hang1 --> <td width="2%">&#160;</td><!-- colindex=04 type=gutter --> <td width="1%" align="right">&#160;</td><!-- colindex=04 type=lead --> <td width="8%" align="right">&#160;</td><!-- colindex=04 type=body --> <td width="1%" align="left">&#160;</td><!-- colindex=04 type=hang1 --> <td width="2%">&#160;</td><!-- colindex=05 type=gutter --> <td width="1%" align="right">&#160;</td><!-- colindex=05 type=lead --> <td width="8%" align="right">&#160;</td><!-- colindex=05 type=body --> <td width="1%" align="left">&#160;</td><!-- colindex=05 type=hang1 --> <td width="2%">&#160;</td><!-- colindex=06 type=gutter --> <td width="1%" align="right">&#160;</td><!-- colindex=06 type=lead --> <td width="8%" align="right">&#160;</td><!-- colindex=06 type=body --> <td width="1%" align="left">&#160;</td><!-- colindex=06 type=hang1 --> <td width="2%">&#160;</td><!-- colindex=07 type=gutter --> <td width="1%" align="right">&#160;</td><!-- colindex=07 type=lead --> <td width="8%" align="right">&#160;</td><!-- colindex=07 type=body --> <td width="1%" align="left">&#160;</td><!-- colindex=07 type=hang1 --> </tr> <!-- Table Width Row END --> <!-- TableOutputHead --> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>Pension Benefits</b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>Other Long-term Benefits</b> </td> <td> &#160; </td> </tr> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>Year Ended<br /> </b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>Year Ended<br /> </b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>Year Ended<br /> </b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>Year Ended<br /> </b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>Year Ended<br /> </b> </td> <td> &#160; 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</td> </tr> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>2009</b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>2008</b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>2007</b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>2009</b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>2008</b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>2007</b> </td> <td> &#160; </td> </tr> <tr style="line-height: 3pt; font-size: 1pt"> <td>&#160; </td> </tr> <!-- TableOutputBody --> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Service cost </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>22</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 20 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 19 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>4</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 4 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 3 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Interest cost </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>25</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 32 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 28 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>2</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 3 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 2 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Expected return on plan assets </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(16</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (18 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (15 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>&#8212;</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Amortization of actuarial net loss (gain) </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>6</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 2 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (3 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(1</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 1 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (4 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Amortization of prior service cost </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>2</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 2 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 2 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>&#8212;</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 31 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Effect of settlement </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>2</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (3 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>&#8212;</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Effect of curtailment </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(2</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (1 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (1 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>&#8212;</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="font-size: 1pt"> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> <b>Net periodic benefit cost</b> </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>39</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 34 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 30 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>5</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 8 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 32 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="font-size: 1pt"> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 3px double #000000"> &#160; </td> <td style="border-top: 3px double #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 3px double #000000"> &#160; </td> <td style="border-top: 3px double #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 3px double #000000"> &#160; </td> <td style="border-top: 3px double #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 3px double #000000"> &#160; </td> <td style="border-top: 3px double #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 3px double #000000"> &#160; </td> <td style="border-top: 3px double #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 3px double #000000"> &#160; </td> <td style="border-top: 3px double #000000"> &#160; </td> <td> &#160; </td> </tr> </table> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The weighted average assumptions used in the determination of the benefit obligation and the plan asset for the pension plans and the other long term benefits were as follows: </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <table border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff; text-align: left"> <!-- Table Width Row BEGIN --> <tr style="font-size: 1pt" valign="bottom"> <td width="65%">&#160;</td><!-- colindex=01 type=maindata --> <td width="2%">&#160;</td><!-- colindex=02 type=gutter --> <td width="4%" align="right">&#160;</td><!-- colindex=02 type=lead --> <td width="1%" align="right">&#160;</td><!-- colindex=02 type=body --> <td width="4%" align="left">&#160;</td><!-- colindex=02 type=hang1 --> <td width="3%">&#160;</td><!-- colindex=03 type=gutter --> <td width="4%" align="right">&#160;</td><!-- colindex=03 type=lead --> <td width="1%" align="right">&#160;</td><!-- colindex=03 type=body --> <td width="4%" align="left">&#160;</td><!-- colindex=03 type=hang1 --> <td width="3%">&#160;</td><!-- colindex=04 type=gutter --> <td width="4%" align="right">&#160;</td><!-- colindex=04 type=lead --> <td width="1%" align="right">&#160;</td><!-- colindex=04 type=body --> <td width="4%" align="left">&#160;</td><!-- colindex=04 type=hang1 --> </tr> <!-- Table Width Row END --> <!-- TableOutputHead --> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom"> <b>December&#160;31,<br /> </b> </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom"> <b>December&#160;31,<br /> </b> </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom"> <b>December&#160;31,<br /> </b> </td> </tr> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px"> <b>Assumptions</b> </div> </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>2009</b> </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>2008</b> </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>2007</b> </td> </tr> <tr style="line-height: 3pt; 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</td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>3.08</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>%</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 3.46 </td> <td nowrap="nowrap" align="left" valign="bottom"> % </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 3.24 </td> <td nowrap="nowrap" align="left" valign="bottom"> % </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Expected long-term rate of return on funds for the pension expense of the year </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>5.28</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>%</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 5.69 </td> <td nowrap="nowrap" align="left" valign="bottom"> % </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 6.34 </td> <td nowrap="nowrap" align="left" valign="bottom"> % </td> </tr> </table> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The discount rate was determined by comparison against long-term corporate bond rates applicable to the respective country of each plan. In developing the expected long-term rate of return on assets, the Company modelled the expected long-term rates of return for broad categories of investments held by the plan against a number of various potential economic scenarios. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The Company&#8217;s pension plan asset allocation at December&#160;31, 2009 and 2008 are as follows: </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <table border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff; text-align: left"> <!-- Table Width Row BEGIN --> <tr style="font-size: 1pt" valign="bottom"> <td width="89%">&#160;</td><!-- colindex=01 type=maindata --> <td width="2%">&#160;</td><!-- colindex=02 type=gutter --> <td width="1%" align="right">&#160;</td><!-- colindex=02 type=lead --> <td width="1%" align="right">&#160;</td><!-- colindex=02 type=body --> <td width="1%" align="left">&#160;</td><!-- colindex=02 type=hang1 --> <td width="3%">&#160;</td><!-- colindex=03 type=gutter --> <td width="1%" align="right">&#160;</td><!-- colindex=03 type=lead --> <td width="1%" align="right">&#160;</td><!-- colindex=03 type=body --> <td width="1%" align="left">&#160;</td><!-- colindex=03 type=hang1 --> </tr> <!-- Table Width Row END --> <!-- TableOutputHead --> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="7" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>Percentage of Plan Assets at December</b> </td> </tr> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px"> <b>Asset Category</b> </div> </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>2009</b> </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>2008</b> </td> </tr> <tr style="line-height: 3pt; font-size: 1pt"> <td>&#160; </td> </tr> <!-- TableOutputBody --> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Equity securities </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>38</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>%</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 36 </td> <td nowrap="nowrap" align="left" valign="bottom"> % </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Bonds securities remunerating regular interest </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>33</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>%</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 37 </td> <td nowrap="nowrap" align="left" valign="bottom"> % </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; 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</td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom"> <b>Quoted Prices in<br /> </b> </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom"> <b>Significant<br /> </b> </td> </tr> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom"> <b>Active Markets<br /> </b> </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom"> <b>Significant Other<br /> </b> </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom"> <b>Unobservable<br /> </b> </td> </tr> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom"> <b>for Identical<br /> </b> </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom"> <b>Observable Inputs<br /> </b> </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom"> <b>Inputs<br /> </b> </td> </tr> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>Total</b> </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>Assets (Level 1)</b> </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>(Level 2)</b> </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>(Level 3)</b> </td> </tr> <tr style="line-height: 3pt; font-size: 1pt"> <td>&#160; </td> </tr> <!-- TableOutputBody --> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Cash and cash equivalents </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 27 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 27 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Equity securities </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 128 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 111 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 17 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Government debt securities </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 57 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 57 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Corporate debt securities </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 56 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 52 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 4 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Derivatives </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 22 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 16 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 6 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Investment funds </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 1 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 1 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Real estate </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 30 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 3 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 20 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 7 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Other (mainly insurance assets&#160;&#8212; contracts and reserves) </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 18 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 1 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 12 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 5 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; 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</td> </tr> </table> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The Company&#8217;s investment strategy for its pension plans is to maximize the long-term rate of return on plan assets with an acceptable level of risk in order to minimize the cost of providing pension benefits while maintaining adequate funding levels. 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</div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The Company has certain defined contribution plans, which accrue benefits for employees on a pro-rata basis during their employment period based on their individual salaries. 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This new option agreement provides for the issuance of 540,000,000 preference shares. Any such shares should be issued by the Company to the Foundation, upon its request and in its sole discretion, upon payment of at least 25% of the par value of the preference shares to be issued. The issuing of the preference shares is conditional upon (i)&#160;the Company receiving an unsolicited offer or there being the threat of such an offer; (ii)&#160;the Company&#8217;s Managing and Supervisory Boards deciding not to support such an offer and; (iii)&#160;the Board of the Foundation determining that such an offer or acquisition would be contrary to the interests of the Company and its stakeholders. The preference shares may remain outstanding for no longer than two years. 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As of December&#160;31, 2009, 10,934,481 of these treasury shares were transferred to employees under the Company&#8217;s share based remuneration programs of which 4,044,733 in the year ended December&#160;31, 2009, following the full vesting of the 2006 stock-award plan, the vesting of the first and second tranches of the 2007 stock-award plan, the vesting of the first tranche of the 2008 stock-award plan together with the acceleration of the vesting of a limited number of stock-awards. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> As of December&#160;31, 2009, the Company owned a number of treasury shares equivalent to 31,985,739. </div> <div style="margin-top: 12pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b><font style="font-family: 'Times New Roman', Times">16.4&#160;&#8212; Stock option plans</font></b> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> In 1995, the Shareholders voted to adopt the 1995 Employee Stock Option Plan (the &#8220;1995 Plan&#8221;) whereby options for up to 33,000,000&#160;shares may be granted in installments over a five-year period. Under the 1995 Plan, the options may be granted to purchase shares of common stock at a price not lower than the market price of the shares on the date of grant. At December&#160;31, 2008, under the 1995 plan, 42,300 of the granted options originally vested 32% after two years, 32% after three years and 36% after four years following the date of the grant. The options expire 10&#160;years after the date of grant. 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</td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> $ </td> <td nowrap="nowrap" align="right" valign="bottom"> 30.50 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="font-size: 1pt"> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Options granted: </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 20pt"> 2001 Plan </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 20pt"> Supervisory Board Plan </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Options expired </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (7,566,170 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> $ </td> <td nowrap="nowrap" align="right" valign="bottom"> 24.88 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> $ </td> <td nowrap="nowrap" align="right" valign="bottom"> 24.88 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Options forfeited </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (1,861,960 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> $ </td> <td nowrap="nowrap" align="right" valign="bottom"> 16.73 - $62.01 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> $ </td> <td nowrap="nowrap" align="right" valign="bottom"> 31.19 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Options exercised </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (131,487 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> $ </td> <td nowrap="nowrap" align="right" valign="bottom"> 17.08 - $19.18 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> $ </td> <td nowrap="nowrap" align="right" valign="bottom"> 18.90 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Outstanding at December&#160;31, 2007 </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 46,765,635 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> $ </td> <td nowrap="nowrap" align="right" valign="bottom"> 16.73 - $62.01 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> $ </td> <td nowrap="nowrap" align="right" valign="bottom"> 31.42 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="font-size: 1pt"> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Options granted: </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 20pt"> 2001 Plan </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 20pt"> Supervisory Board Plan </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Options expired </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (5,923,552 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> $ </td> <td nowrap="nowrap" align="right" valign="bottom"> 44.00 - $62.01 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> $ </td> <td nowrap="nowrap" align="right" valign="bottom"> 59.1 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Options forfeited </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (1,410,650 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> $ </td> <td nowrap="nowrap" align="right" valign="bottom"> 16.73 - $62.01 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> $ </td> <td nowrap="nowrap" align="right" valign="bottom"> 27.9 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Options exercised </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Outstanding at December&#160;31, 2008 </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 39,431,433 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> $ </td> <td nowrap="nowrap" align="right" valign="bottom"> 16.73 - $39.00 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> $ </td> <td nowrap="nowrap" align="right" valign="bottom"> 27.35 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="font-size: 1pt"> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Options granted: </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 20pt"> 2001 Plan </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 20pt"> Supervisory Board Plan </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Options expired </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Options forfeited </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (1,487,601 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> $ </td> <td nowrap="nowrap" align="right" valign="bottom"> 17.08 - $39.00 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> $ </td> <td nowrap="nowrap" align="right" valign="bottom"> 27.69 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Options exercised </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> <b>Outstanding at December&#160;31, 2009</b> </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>37,943,832</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; 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</td> </tr> </table> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> </div> <div style="margin-top: 12pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b><font style="font-family: 'Times New Roman', Times">16.5&#160;&#8212; Nonvested share awards</font></b> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> On April&#160;29, 2006 the Compensation Committee (on behalf of the entire Supervisory Board and with its approval) granted 66,000 non vested shares to the members of the Supervisory Board and professionals of the Supervisory Board (&#8220;The 2006 Supervisory Board Plan&#8221;), of which 15,000 awards were immediately waived. These awards are granted at the nominal value of the share of &#8364;1.04 and vest over the following period: one third after 12&#160;months, one third after 24&#160;months and one third after 36&#160;months following the date of the grant. Nevertheless, they are not subject to any market, performance or service conditions. As such, their associated compensation cost was recorded immediately at grant. In 2007, the first tranche of the plan, representing 17,000&#160;shares vested as at April&#160;27, 2007. In 2008, the second tranche of the plan, representing 16,000&#160;shares vested as at April&#160;27, 2008. Furthermore, following the end of mandate of one of the members of the Board, 4,000&#160;shares were accelerated in 2008. In 2009, the third tranche of the plan, representing 14,000&#160;shares vested as at April&#160;27, 2009. As of December&#160;31 2009, no awards were outstanding under the 2006 Supervisory Board Plan. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> On September&#160;29, 2006 the Company granted 4,854,280 nonvested shares to senior executives and selected employees to be issued upon vesting from treasury stock (&#8220;The 2006 Employee Plan&#8221;). The Compensation Committee and the Supervisory Board also authorized on September&#160;29, 2006 the future grant of additional shares to selected employees upon nomination by the Managing Board of the Company. These additional shares were granted in 2006 and 2007, as detailed below. The shares were granted for free to employees, and vested upon completion of three internal performance conditions, each weighting for one third of the total number of awards granted. Except for employees in one of the Company&#8217;s European subsidiaries for whom a subplan was simultaneously created on September&#160;29, 2006 for statutory payroll tax purposes, the nonvested shares vested over the following requisite service period: 32% as at April&#160;27, 2007, 32% as at April&#160;27, 2008 and 36% as at April&#160;27, 2009. The following requisite service period was required for the nonvested shares granted under the local subplan: 64% of the granted stock awards vested two years from grant date and 36% as at April&#160;27, 2009. In addition, the sale by the employees of the shares included in the subplan, once vested, is restricted over an additional two-year period which is not considered as an extension of the requisite service period. In compliance with the graded vesting of the grant, the first tranche of the original plan, representing 1,120,234&#160;shares, vested as at April&#160;27, 2007. In addition, 10,120&#160;shares were accelerated during the year, of which 340 under the subplan. In 2008, the second tranche of the original plan, representing 1,079,952&#160;shares, vested as at April&#160;27, 2008, and the first tranche of the subplan, representing 748,394&#160;shares vested as at September&#160;30, 2008. In addition, 30,590&#160;shares were accelerated during the year, of which 5,941 under the subplan. These shares were transferred to employees from the treasury shares owned by the Company. In 2009, the third tranche of the original plan, representing 1,155,238&#160;shares and the third tranche of the subplan, representing 400,149&#160;shares vested as at April&#160;27, 2009. In addition, 9,446&#160;shares were accelerated during the year, of which 4,035 under the subplan. At December&#160;31, 2009, no nonvested shares from the 2006 plan were outstanding. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> On December&#160;19, 2006, the Compensation Committee (on behalf of the entire Supervisory Board and with its approval) granted additional 62,360&#160;shares to selected employees designated by the Managing Board of the Company as part of the 2006 Employee Plan. This additional grant had the same terms and conditions as the original plan. In compliance with the graded vesting of the grant, the first tranche of this plan, representing 8,885&#160;shares, vested as at April&#160;27, 2007, and the first tranche of the subplan, representing 21,648&#160;shares vested as at December&#160;20, 2008. 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As at December&#160;31, 2009, no nonvested shares were outstanding as part of this additional grant. </div> <!-- XBRL Pagebreak Begin --> </div> <!-- END PAGE WIDTH --> <!-- PAGEBREAK --> <div style="margin-left: 0%"> <!-- BEGIN PAGE WIDTH --> <div style="margin-top: 0pt; font-size: 1pt"> </div> <div align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b> <font style="font-family: 'Times New Roman', Times"> </font> </b> </div> <!-- XBRL Pagebreak End --> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> On February&#160;27, 2007, the Compensation Committee (on behalf of the entire Supervisory Board and with its approval) granted additional 215,000&#160;shares to selected employees designated by the Managing Board of the Company as part of the 2006 Employee Plan. This additional grant had the same terms and conditions as the original plan. In compliance with the graded vesting of the grant, the first tranche of this plan, representing 50,031&#160;shares, vested as at April&#160;27, 2007. In addition, 1,196&#160;shares were accelerated during the year. In 2008, the second tranche of the plan, representing 47,551&#160;shares vested as at April&#160;27, 2008. In addition, 598&#160;shares were accelerated during the year. In 2009, the first tranche of the subplan, representing 36,122&#160;shares vested as at February&#160;28, 2009. The third tranche of the plan representing 51,514&#160;shares and the third tranche of the subplan representing 20,174&#160;shares vested as at April&#160;27, 2009. In addition, 108&#160;shares were accelerated during the year. As at December&#160;31, 2009, no nonvested shares were outstanding as part of this additional grant. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> On April&#160;28, 2007, the Compensation Committee (on behalf of the entire Supervisory Board and with its approval) granted 165,000 stock-based awards to the members of the Supervisory Board and professionals of the Supervisory Board (&#8220;The 2007 Supervisory Board Plan&#8221;), of which 22,500 awards were immediately waived. These awards are granted at the nominal value of the share of &#8364;1.04 and vest over the following period: one third after 12&#160;months, one third after 24&#160;months and one third after 36&#160;months following the date of the grant. Nevertheless, they are not subject to any market, performance or service conditions. As such, their associated compensation cost was recorded immediately at grant. In compliance with the graded vesting of the grant, the first tranche of this plan, representing 45,000&#160;shares, vested as at April&#160;28, 2008. Furthermore, following the end of mandate of one of the members of the Board, 7,500&#160;shares were accelerated in 2008. The second tranche of this plan, representing 45,000&#160;shares, vested as at April&#160;28, 2009. As of December&#160;31, 2009, 45,000 awards were outstanding under the 2007 Supervisory Board Plan. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> On June&#160;18, 2007, the Company granted 5,691,840 nonvested shares to senior executives and selected employees to be issued upon vesting from treasury stock (&#8220;The 2007 Employee Plan&#8221;). The Compensation Committee and the Supervisory Board also authorized the future grant of additional shares to selected employees upon nomination by the Managing Board of the Company as detailed below. The shares were granted for free to employees, and will vest upon completion of three internal performance conditions, each weighting for one third of the total number of awards granted. Except for employees in two of the Company&#8217;s European subsidiaries for whom a subplan was simultaneously created, the nonvested shares vest over the following requisite service period: 32% as at April&#160;26, 2008, 32% as at April&#160;26, 2009 and 36% as at April&#160;26, 2010. The following requisite service period is required for the nonvested shares granted under the two local subplans: for the first one, 64% of the granted stock awards vest as at June&#160;19, 2009 and 36% as at June&#160;19, 2010. In addition, the sale by the employees of the shares once vested is restricted over an additional two-year period, which is not considered as an extension of the requisite service period. For the second subplan, 32% vest as at June&#160;19, 2008, 32% as at April&#160;26, 2009 and 36% as at April&#160;26, 2010. In 2008, the Company failed to meet one performance condition during one semester. Consequently, one sixth of the shares granted, totaling 926,121&#160;shares, of which 242,233 on the first subplan and 2,634 on the second subplan, was lost for vesting. In compliance with the graded vesting of the grant, the first tranche of the original plan, representing 1,097,124&#160;shares, vested as at April&#160;26, 2008. The first tranche of one of the local subplans, representing 4,248&#160;shares, vested as at June&#160;19, 2008. In addition, 31,786&#160;shares were accelerated during the year, of which 2,999 under the subplans. These shares were transferred to employees from the treasury shares owned by the Company. The second tranche of the original plan, representing 1,048,429&#160;shares and the second tranche of one of the local subplans, representing 3,914&#160;shares, vested as at April&#160;26, 2009. The first tranche of the other local subplan, representing 768,157&#160;shares, vested as at June&#160;19, 2009. In addition, 32,360&#160;shares were accelerated during the year, of which 4,974 under the subplans. These shares were transferred to employees from the treasury shares owned by the Company. At December&#160;31, 2009, 1,539,083 nonvested shares were outstanding, of which 409,491 under the first subplan and 4,395 under the second one. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> On December&#160;6, 2007, the Managing Board of the Company, as authorized by the Supervisory Board of the Compensation Committee, granted additional 84,450&#160;shares to selected employees designated by the Managing Board of the Company as part of the 2007 Employee Plan. This additional grant has the same terms and conditions as the original plan. As a consequence of the failed performance condition explained above, 14,023&#160;shares were lost for vesting, of which 498 on the subplan. In compliance with the graded vesting of the grant, the first tranche of the original plan, representing 10,434&#160;shares, vested as at April&#160;26, 2008. In addition, 11,311&#160;shares were accelerated during the year. The second tranche of the original plan, representing 21,585&#160;shares, vested as at April&#160;26, 2009. The first tranche of the subplan, representing 1,602&#160;shares, vested as at December&#160;7, 2009. At December&#160;31, 2009, 24,711 nonvested shares were outstanding as part of this additional grant, of which 900 under the local subplan. </div> <!-- XBRL Pagebreak Begin --> </div> <!-- END PAGE WIDTH --> <!-- PAGEBREAK --> <div style="margin-left: 0%"> <!-- BEGIN PAGE WIDTH --> <div style="margin-top: 0pt; font-size: 1pt"> </div> <div align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b> <font style="font-family: 'Times New Roman', Times"> </font> </b> </div> <!-- XBRL Pagebreak End --> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> On February&#160;19, 2008, the Managing Board of the Company, as authorized by the Supervisory Board of the Compensation Committee, granted additional 135,550&#160;shares to selected employees designated by the Managing Board of the Company as part of the 2007 Employee Plan. This additional grant has the same terms and conditions as the original plan. As a consequence of the failed performance condition explained above, 22,559&#160;shares were lost for vesting, of which 5,887 on the local subplan. In compliance with the graded vesting of the grant, the first tranche of the original plan, representing 26,407&#160;shares, vested as at April&#160;26, 2008. In addition, 320&#160;shares were accelerated during the year. The second tranche of the original plan, representing 21,978&#160;shares, vested as at April&#160;26, 2009. In addition, 567&#160;shares were accelerated during the year. At December&#160;31, 2009, 37,534 nonvested shares were outstanding as part of this additional grant, of which 12,821 under the local subplan. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> On May&#160;16, 2008, the Compensation Committee (on behalf of the entire Supervisory Board and with its approval) granted 165,000 stock-based awards to the members of the Supervisory Board and professionals of the Supervisory Board (&#8220;The 2008 Supervisory Board Plan&#8221;), of which 22,500 awards were immediately waived. These awards are granted at the nominal value of the share of &#8364;1.04 and vest over the following period: one third after 12&#160;months, one third after 24&#160;months and one third after 36&#160;months following the date of the grant. Nevertheless, they are not subject to any market, performance or service conditions. As such, their associated compensation cost was recorded immediately at grant. In compliance with the graded vesting of the grant, the first tranche of this plan, representing 47,500&#160;shares, vested as at May&#160;16, 2009. As of December&#160;31, 2009, 95,000 awards were outstanding under the 2008 Supervisory Board Plan. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> On July&#160;22, 2008, the Company granted 5,723,305 nonvested shares to senior executives and selected employees to be issued upon vesting from treasury stock (&#8220;The 2008 Employee Plan&#8221;). The Compensation Committee also authorized the future grant of additional shares to selected employees upon nomination by the Managing Board of the Company. The shares were granted for free to employees, and will vest upon completion of three internal performance conditions, each weighting for one third of the total number of awards granted. Except for employees in two of the Company&#8217;s European subsidiaries for whom a subplan was simultaneously created, the nonvested shares vest over the following requisite service period: 32% as at May&#160;14, 2009, 32% as at May&#160;14, 2010 and 36% as at May&#160;14, 2011. The following requisite service period is required for the nonvested shares granted under the two local subplans: for the first one, 64% of the granted stock awards vest as at July&#160;23, 2010 and 36% as at May&#160;14, 2011. In addition, the sale by the employees of the shares once vested is restricted over an additional two-year period, which is not considered as an extension of the requisite service period. For the second one, 32% vest as at July&#160;22, 2009, 32% as at May&#160;14, 2010 and 36% as at May&#160;14, 2011. In 2009, based on the final calculations, it turned out that the Company failed to meet two performance conditions. Consequently, two third of the shares granted, totaling 3,747,193&#160;shares, of which 1,020,134 on the first subplan and 35,598 on the second subplan, was lost for vesting. In compliance with the graded vesting of the grant, the first tranche of the original plan, representing 427,324&#160;shares, vested as at May&#160;14, 2009. The first tranche of one of the local subplans, representing 5,719&#160;shares, vested as at July&#160;23, 2009. In addition, 15,588&#160;shares were accelerated during the year. These shares were transferred to employees from the treasury shares owned by the Company. At December&#160;31, 2009, 1,399,373 nonvested shares were outstanding, of which 509,324 under the first local subplan and 11,906 under the second local subplan. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> On February&#160;27, 2009, the Managing Board of the Company, as authorized by the Supervisory Board of the Compensation Committee, granted additional 50,400&#160;shares to selected employees designated by the Managing Board of the Company as part of the 2008 Employee Plan. This additional grant has the same terms and conditions as the original plan. As a consequence of the failed performance condition explained above, 33,589&#160;shares were lost for vesting, of which 11,365 on the first local subplan and 1,332 on the second local subplan. In compliance with the graded vesting of the grant, the first tranche of the original plan, representing 3,348&#160;shares, vested as at May&#160;14, 2009. At December&#160;31, 2009, 12,329 nonvested shares were outstanding as part of this additional grant, of which 5,685 under the first local subplan and 668 under the second local subplan. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> On May&#160;20, 2009, the Compensation Committee (on behalf of the entire Supervisory Board and with its approval) granted 165,000 stock-based awards to the members of the Supervisory Board and professionals of the Supervisory Board (&#8220;The 2009 Supervisory Board Plan&#8221;), of which 7,500 awards were immediately waived. These awards are granted at the nominal value of the share of &#8364;1.04 and vest over the following period: one third after 12&#160;months, one third after 24&#160;months and one third after 36&#160;months following the date of the grant. Nevertheless, they are not subject to any market, performance or service conditions. As such, their associated compensation cost was recorded immediately at grant. As of December 31 2009, 157,500 awards were outstanding under the 2009 Supervisory Board Plan. </div> <!-- XBRL Pagebreak Begin --> </div> <!-- END PAGE WIDTH --> <!-- PAGEBREAK --> <div style="margin-left: 0%"> <!-- BEGIN PAGE WIDTH --> <div style="margin-top: 0pt; font-size: 1pt"> </div> <div align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b> <font style="font-family: 'Times New Roman', Times"> </font> </b> </div> <!-- XBRL Pagebreak End --> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> On July&#160;28, 2009, the Company granted 5,575,240 nonvested shares to senior executives and selected employees to be issued upon vesting from treasury stock (&#8220;The 2009 Employee Plan&#8221;). The Compensation Committee also authorized the future grant of additional shares to selected employees upon nomination by the Managing Board of the Company. The shares were granted for free to employees, and will vest upon completion of three internal performance conditions, each weighting for one third of the total number of awards granted. Except for employees in one of the Company&#8217;s European subsidiaries for whom a subplan was simultaneously created, the nonvested shares vest over the following requisite service period: 32% as at May&#160;20, 2010, 32% as at May&#160;20, 2011 and 36% as at May&#160;20, 2012. The following requisite service period is required for the nonvested shares granted under the local subplan: 64% of the granted stock awards vest as at July&#160;29, 2011 and 36% as at May&#160;20, 2012. In addition, the sale by the employees of the shares once vested is restricted over an additional two-year period, which is not considered as an extension of the requisite service period. At December&#160;31, 2009, 5,532,440 nonvested shares were outstanding, of which 1,438,185 under the subplan. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> On November&#160;30, 2009, the Managing Board of the Company, as authorized by the Supervisory Board of the Compensation Committee, granted additional 8,300&#160;shares to selected employees designated by the Managing Board of the Company as part of the 2009 Employee Plan. This additional grant has the same terms and conditions as the original plan. At December&#160;31, 2009, 8,300 nonvested shares were outstanding as part of this additional grant. </div> <!-- XBRL Pagebreak Begin --> </div> <!-- END PAGE WIDTH --> <!-- PAGEBREAK --> <div style="margin-left: 0%"> <!-- BEGIN PAGE WIDTH --> <div style="margin-top: 0pt; font-size: 1pt"> </div> <div align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b> <font style="font-family: 'Times New Roman', Times"> </font> </b> </div> <!-- XBRL Pagebreak End --> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> A summary of the nonvested share activity for the years ended December&#160;31, 2009 and December&#160;31, 2008 is presented below: </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <table border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; 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padding-bottom: 1px"> <b>Nonvested Shares</b> </div> </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>Number of Shares</b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>Exercise price</b> </td> <td> &#160; </td> </tr> <tr style="line-height: 3pt; font-size: 1pt"> <td>&#160; </td> </tr> <!-- TableOutputBody --> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Outstanding as at December&#160;31, 2007 </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 10,510,030 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> $ </td> <td nowrap="nowrap" align="right" valign="bottom"> 0-&#8364;1.04 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Awards granted: </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 20pt"> 2007 Employee Plan </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 135,550 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> $ </td> <td nowrap="nowrap" align="right" valign="bottom"> 0 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 20pt"> 2008 Employee Plan </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 5,723,305 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> $ </td> <td nowrap="nowrap" align="right" valign="bottom"> 0 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 20pt"> 2008 Supervisory Board Plan </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 165,000 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#8364; </td> <td nowrap="nowrap" align="right" valign="bottom"> 1.04 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Awards forfeited: </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 20pt"> 2005 Employee Plan </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (7,900 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> $ </td> <td nowrap="nowrap" align="right" valign="bottom"> 0 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 20pt"> 2006 Employee Plan </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (62,162 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> $ </td> <td nowrap="nowrap" align="right" valign="bottom"> 0 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 20pt"> 2007 Employee Plan </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (141,201 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; 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</td> <td nowrap="nowrap" align="left" valign="bottom"> &#8364; </td> <td nowrap="nowrap" align="right" valign="bottom"> 1.04 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Awards cancelled on failed vesting conditions: </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 20pt"> 2007 Employee Plan </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (962,703 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> $ </td> <td nowrap="nowrap" align="right" valign="bottom"> 0 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 20pt"> Awards vested: </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 20pt"> 2005 Employee Plan </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (903,381 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> $ </td> <td nowrap="nowrap" align="right" valign="bottom"> 0 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 20pt"> 2005 Supervisory Board Plan </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (17,000 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#8364; </td> <td nowrap="nowrap" align="right" valign="bottom"> 1.04 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 20pt"> 2006 Employee Plan </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (1,937,618 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> $ </td> <td nowrap="nowrap" align="right" valign="bottom"> 0 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 20pt"> 2006 Supervisory Board Plan </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (20,000 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#8364; </td> <td nowrap="nowrap" align="right" valign="bottom"> 1.04 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 20pt"> 2007 Employee Plan </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (1,181,630 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> $ </td> <td nowrap="nowrap" align="right" valign="bottom"> 0 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 20pt"> 2007 Supervisory Board Plan </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (52,500 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#8364; </td> <td nowrap="nowrap" align="right" valign="bottom"> 1.04 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Outstanding as at December&#160;31, 2008 </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 11,169,105 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> $ </td> <td nowrap="nowrap" align="right" valign="bottom"> 0-&#8364;1.04 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Awards granted: </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 20pt"> 2008 Employee Plan </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 50,400 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> $ </td> <td nowrap="nowrap" align="right" valign="bottom"> 0 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 20pt"> 2009 Employee Plan </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 5,583,540 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> $ </td> <td nowrap="nowrap" align="right" valign="bottom"> 0 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 20pt"> 2009 Supervisory Board Plan </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 165,000 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#8364; </td> <td nowrap="nowrap" align="right" valign="bottom"> 1.04 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Awards forfeited: </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 20pt"> 2006 Employee Plan </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (8,507 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> $ </td> <td nowrap="nowrap" align="right" valign="bottom"> 0 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 20pt"> 2007 Employee Plan </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (52,896 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> $ </td> <td nowrap="nowrap" align="right" valign="bottom"> 0 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 20pt"> 2008 Employee Plan </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (73,057 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> $ </td> <td nowrap="nowrap" align="right" valign="bottom"> 0 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 20pt"> 2009 Employee Plan </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (42,800 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> $ </td> <td nowrap="nowrap" align="right" valign="bottom"> 0 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 20pt"> 2009 Supervisory Board Plan </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (7,500 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#8364; </td> <td nowrap="nowrap" align="right" valign="bottom"> 1.04 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Awards cancelled on failed vesting conditions: </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 20pt"> 2008 Employee Plan </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (3,780,782 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> $ </td> <td nowrap="nowrap" align="right" valign="bottom"> 0 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Awards vested: </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 20pt"> 2006 Employee Plan </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (1,694,162 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> $ </td> <td nowrap="nowrap" align="right" valign="bottom"> 0 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 20pt"> 2006 Supervisory Board Plan </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (14,000 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#8364; </td> <td nowrap="nowrap" align="right" valign="bottom"> 1.04 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 20pt"> 2007 Employee Plan </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (1,898,592 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> $ </td> <td nowrap="nowrap" align="right" valign="bottom"> 0 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 20pt"> 2007 Supervisory Board Plan </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (45,000 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#8364; </td> <td nowrap="nowrap" align="right" valign="bottom"> 1.04 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 20pt"> 2008 Employee Plan </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (451,979 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> $ </td> <td nowrap="nowrap" align="right" valign="bottom"> 0 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 20pt"> 2008 Supervisory Board Plan </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (47,500 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#8364; </td> <td nowrap="nowrap" align="right" valign="bottom"> 1.04 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> <b>Outstanding as at December&#160;31, 2009</b> </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>8,851,270</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>$</b> </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>0-&#8364;1.04 </b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="font-size: 1pt"> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> </tr> </table> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The Company recorded compensation expense for the nonvested share awards based on the fair value of the awards at the grant date. The fair value of the awards granted in 2005 represents the $16.61&#160;share price at the date of the grant. On the 2005 Employee Plan, the fair value of the nonvested shares granted, since they are affected by a market condition, reflects a discount of 49.50%, using a Monte Carlo path-dependent pricing model to measure the probability of achieving the market condition. </div> <!-- XBRL Pagebreak Begin --> </div> <!-- END PAGE WIDTH --> <!-- PAGEBREAK --> <div style="margin-left: 0%"> <!-- BEGIN PAGE WIDTH --> <div style="margin-top: 0pt; font-size: 1pt"> </div> <div align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b> <font style="font-family: 'Times New Roman', Times"> </font> </b> </div> <!-- XBRL Pagebreak End --> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The following assumptions were incorporated into the Monte Carlo pricing model to estimate the 49.50% discount: </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <table border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff; text-align: left"> <!-- Table Width Row BEGIN --> <tr style="font-size: 1pt" valign="bottom"> <td width="84%">&#160;</td><!-- colindex=01 type=maindata --> <td width="2%">&#160;</td><!-- colindex=02 type=gutter --> <td width="14%">&#160;</td><!-- colindex=02 type=maindata --> </tr> <!-- Table Width Row END --> <!-- TableOutputHead --> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="center" valign="bottom"> <b>2005<br /> </b> </td> </tr> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>Employee Plan</b> </td> </tr> <tr style="line-height: 3pt; font-size: 1pt"> <td>&#160; </td> </tr> <!-- TableOutputBody --> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Historical share price volatility </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="center" valign="bottom"> 27.74% </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Historical volatility of reference index </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="center" valign="bottom"> 25.5% </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Three-year average dividend yield </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="center" valign="bottom"> 0.55% </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Risk-free interest rates used </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="center" valign="bottom"> 4.21%-4.33% </td> </tr> </table> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Consistent with fair value calculations of stock option grants in prior years, the Company has determined the historical share price volatility to be the most appropriate estimate of future price activity. The weighted average grant-date fair value of nonvested shares granted to employees under the 2005 Employee Plan was $8.50. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> In 2006, the Company accounted for the impact of the modification of the 2005 Employee Plan with the creation of a local subplan in compliance with U.S.&#160;GAAP guidance. Such modification did not generate any incremental cost since, when measured as at the modification date, the fair value was discounted at 100% due to the nil probability as at March 2006 to achieve the market condition. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The grant date fair value of nonvested shares granted to employees under the 2006 Employee Plan was $17.35. On the 2006 Employee Plan, the fair value of the nonvested shares granted did not reflect any discount since they are not affected by a market condition. On February&#160;27, 2007, the Compensation Committee approved the statement that the three performance conditions were met. Consequently, the compensation expense recorded on the 2006 Employee Plan reflects the statement that all of the awards granted will vest, as far as the service condition is met. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The grant date fair value of nonvested shares granted to employees under the 2007 Employee Plan was $19.35. On the 2007 Employee Plan, the fair value of the nonvested shares granted did not reflect any discount since they are not affected by a market condition. On April&#160;1, 2008, the Compensation Committee approved the statement that two performance conditions were fully met and that for one condition only one half of it was achieved. Consequently, the compensation expense recorded on the 2007 Employee Plan reflects the statement that five sixths of the awards granted will vest, as far as the service condition is met. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The grant date fair value of nonvested shares granted to employees under the 2008 Employee Plan was $10.64. On the 2008 Employee Plan, the fair value of the nonvested shares granted did not reflect any discount since they are not affected by a market condition. On March&#160;23, 2009, the Compensation Committee approved the statement that one performance condition was fully met. Consequently, the compensation expense recorded on the 2008 Employee Plan reflects the statement that one third of the awards granted will vest, as far as the service condition is met. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The grant date fair value of nonvested shares granted to employees under the 2009 Employee Plan was $7.54. On the 2009 Employee Plan, the fair value of the nonvested shares granted did not reflect any discount since they are not affected by a market condition. On the contrary, the Company estimates the number of awards expected to vest by assessing the probability of achieving the performance conditions. At December&#160;31, 2009, a final determination of the achievement of the performance conditions had not yet been made by the Compensation Committee of the Supervisory Board. However, the Company has estimated that two third of awards are expected to vest. Consequently, the compensation expense recorded for the 2009 Employee Plan reflects the vesting of two third of the awards granted, subject to the service condition being met. The assumption of the expected number of awards to be vested upon achievement of the performance conditions is subject to changes based on the final measurement of the conditions, which is expected to occur in the first quarter of 2010. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The following table illustrates the classification of pre-payroll tax and social contribution stock-based compensation expense included in the consolidated statements of income for the year ended December&#160;31, 2009, December&#160;31, 2008 and December&#160;31, 2007, respectively: </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <table border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff; text-align: left"> <!-- Table Width Row BEGIN --> <tr style="font-size: 1pt" valign="bottom"> <td width="62%">&#160;</td><!-- colindex=01 type=maindata --> <td width="2%">&#160;</td><!-- colindex=02 type=gutter --> <td width="1%" align="right">&#160;</td><!-- colindex=02 type=lead --> <td width="8%" align="right">&#160;</td><!-- colindex=02 type=body --> <td width="1%" align="left">&#160;</td><!-- colindex=02 type=hang1 --> <td width="3%">&#160;</td><!-- colindex=03 type=gutter --> <td width="1%" align="right">&#160;</td><!-- colindex=03 type=lead --> <td width="8%" align="right">&#160;</td><!-- colindex=03 type=body --> <td width="1%" align="left">&#160;</td><!-- colindex=03 type=hang1 --> <td width="3%">&#160;</td><!-- colindex=04 type=gutter --> <td width="1%" align="right">&#160;</td><!-- colindex=04 type=lead --> <td width="8%" align="right">&#160;</td><!-- colindex=04 type=body --> <td width="1%" align="left">&#160;</td><!-- colindex=04 type=hang1 --> </tr> <!-- Table Width Row END --> <!-- TableOutputHead --> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>December&#160;31,<br /> </b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>December&#160;31,<br /> </b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>December&#160;31,<br /> </b> </td> <td> &#160; </td> </tr> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>2009</b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>2008</b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>2007</b> </td> <td> &#160; 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margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> </div> <!-- XBRL Pagebreak Begin --> </div> <!-- END PAGE WIDTH --> <!-- PAGEBREAK --> <div style="margin-left: 0%"> <!-- BEGIN PAGE WIDTH --> <div style="margin-top: 0pt; font-size: 1pt"> </div> <div align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b> <font style="font-family: 'Times New Roman', Times"> </font> </b> </div> <!-- XBRL Pagebreak End --> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Compensation cost, excluding payroll tax and social contribution, capitalized as part of inventory was $2&#160;million at December&#160;31, 2009, $3&#160;million at December&#160;31, 2008 whereas it amounted to $6&#160;million at December&#160;31, 2007. As of December&#160;31, 2009 there was $27&#160;million of total unrecognized compensation cost related to the grant of nonvested shares, which is expected to be recognized over a weighted average period of approximately 16.3&#160;months. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The total deferred income tax expense recognized in the consolidated statements of income related to unvested share-based compensation expense amounted to $8&#160;million for the year ended December&#160;31, 2009, including a shortfall recorded on the 2006 Employee Plan closed during 2009 due to the vesting fair value being significantly lower than the grant fair value. The total deferred income tax benefit recognized in the consolidated statements of income related to unvested share-based compensation expense amounted to $3&#160;million and $9&#160;million for the years ended December&#160;31, 2008 and 2007, respectively. </div> <div style="margin-top: 12pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b><font style="font-family: 'Times New Roman', Times">16.6&#160;&#8212; Accumulated other comprehensive income (loss)</font></b> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The accumulated balances related to each component of Other comprehensive income (loss) were as follows: </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; 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margin-left: 10pt"> Balance as of December&#160;31, 2006 </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 860 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 0 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 13 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (57 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 816 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; 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</td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(5</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>4</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>70</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> <b>Balance as of December&#160;31, 2009</b> </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>1,224</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(6</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>6</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(60</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>1,164</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> </table> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> For the year ended December&#160;31, 2009, the net amount of accumulated other comprehensive income reclassified as earnings was approximately $11&#160;million related to cash flow hedge transactions outstanding as at December&#160;31, 2008, for which the forecasted hedged transaction occurred in 2009. </div> <div style="margin-top: 12pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b><font style="font-family: 'Times New Roman', Times">16.7&#160;&#8212; Dividends</font></b> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> At the Company&#8217;s Annual General meeting of Shareholders held on May&#160;20, 2009, the distribution of a cash dividend of $105&#160;million or $0.12 per common share to be paid in four equal installments was adopted by the Company&#8217;s shareholders. Through December&#160;31, 2009, payments were made for an amount of $79&#160;million including the payment of $3&#160;million for related withholding tax. The remaining $0.03 per share cash dividend to be paid in the first quarter of 2010 totaled $26&#160;million and was reported as &#8220;dividends payable to shareholders&#8221; on the consolidated balance sheet as at December&#160;31, 2009. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> At the Annual General Meeting of Shareholders on May&#160;14, 2008&#160;shareholders adopted the distribution of $0.36 per share in cash dividends, payable in four equal quarterly installments. Through December&#160;31, 2008, payments totaled $0.27 per share or approximately $240&#160;million. The remaining $0.09 per share cash dividend to be paid in the first quarter of 2009 totaled $79&#160;million and was reported as &#8220;dividends payable to shareholders&#8221; on the consolidated balance sheet as at December&#160;31, 2008. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> In 2008 the cash dividend paid was of $0.36 per share for a total amount of $319&#160;million. 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</td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>Year Ended<br /> </b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>Year Ended<br /> </b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>Year Ended<br /> </b> </td> <td> &#160; </td> </tr> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>December&#160;31,<br /> </b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>December&#160;31,<br /> </b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>December&#160;31,<br /> </b> </td> <td> &#160; </td> </tr> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>2009</b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>2008</b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>2007</b> </td> <td> &#160; </td> </tr> <tr style="line-height: 3pt; font-size: 1pt"> <td>&#160; </td> </tr> <!-- TableOutputBody --> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> <b>Basic EPS</b> </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Net income (loss) </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(1,131</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (786 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (477 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Weighted average shares outstanding </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>876,928,190</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 891,955,940 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 898,731,154 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Basic EPS </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(1.29</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> <td> &#160; 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</td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Net income (loss) </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(1,131</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (786 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (477 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Net income (loss) adjusted </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(1,131</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (786 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (477 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Weighted average shares outstanding </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>876,928,190</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 891,955,940 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 898,731,154 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Dilutive effect of stock options </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>&#8212;</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Dilutive effect of nonvested shares </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>&#8212;</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Dilutive effect of convertible debt </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>&#8212;</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Number of shares used in calculating diluted EPS </div> </td> <td> &#160; 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margin-left: 10pt"> STE restructuring plan </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (99 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (1 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (100 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Goodwill annual impairment test </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (6 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (6 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Other restructuring initiatives </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (4 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (53 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (2 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (59 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> <b>Total</b> </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(35</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(221</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(35</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(291</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> </tr> <tr valign="bottom" style="font-size: 1pt"> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> </tr> </table> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> </div> <div style="margin-top: 12pt; font-size: 1pt">&#160; </div> <table border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff; text-align: left"> <!-- Table Width Row BEGIN --> <tr style="font-size: 1pt" valign="bottom"> <td width="44%">&#160;</td><!-- colindex=01 type=maindata --> <td width="2%">&#160;</td><!-- colindex=02 type=gutter --> <td width="1%" align="right">&#160;</td><!-- colindex=02 type=lead --> <td width="7%" align="right">&#160;</td><!-- colindex=02 type=body --> <td width="1%" align="left">&#160;</td><!-- colindex=02 type=hang1 --> <td width="3%">&#160;</td><!-- colindex=03 type=gutter --> <td width="1%" align="right">&#160;</td><!-- colindex=03 type=lead --> <td width="9%" align="right">&#160;</td><!-- colindex=03 type=body --> <td width="1%" align="left">&#160;</td><!-- colindex=03 type=hang1 --> <td width="3%">&#160;</td><!-- colindex=04 type=gutter --> <td width="1%" align="right">&#160;</td><!-- colindex=04 type=lead --> <td width="9%" align="right">&#160;</td><!-- colindex=04 type=body --> <td width="1%" align="left">&#160;</td><!-- colindex=04 type=hang1 --> <td width="3%">&#160;</td><!-- colindex=05 type=gutter --> <td width="1%" align="right">&#160;</td><!-- colindex=05 type=lead --> <td width="12%" align="right">&#160;</td><!-- colindex=05 type=body --> <td width="1%" align="left">&#160;</td><!-- colindex=05 type=hang1 --> </tr> <!-- Table Width Row END --> <!-- TableOutputHead --> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>Total impairment,<br /> </b> </td> <td> &#160; </td> </tr> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>restructuring<br /> </b> </td> <td> &#160; </td> </tr> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>charges and other<br /> </b> </td> <td> &#160; </td> </tr> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>Restructuring<br /> </b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>Other related<br /> </b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>related closure<br /> </b> </td> <td> &#160; </td> </tr> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px"> <b>Year Ended December&#160;31, 2008</b> </div> </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>Impairment</b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>charges</b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>closure costs</b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>costs</b> </td> <td> &#160; 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margin-left: 10pt"> FMG deconsolidation </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (190 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (2 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (24 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (216 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Goodwill annual impairment test </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (13 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (13 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Other restructuring initiatives </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; 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margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> STMicroelectronics N.V. and its subsidiaries are individually liable for income taxes in their jurisdictions. Tax losses can only offset profits generated by the taxable entity incurring such loss. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Income tax benefit (expense) is comprised of the following: </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <table border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff; text-align: left"> <!-- Table Width Row BEGIN --> <tr style="font-size: 1pt" valign="bottom"> <td width="62%">&#160;</td><!-- colindex=01 type=maindata --> <td width="2%">&#160;</td><!-- colindex=02 type=gutter --> <td width="1%" align="right">&#160;</td><!-- colindex=02 type=lead --> <td width="8%" align="right">&#160;</td><!-- colindex=02 type=body --> <td width="1%" align="left">&#160;</td><!-- colindex=02 type=hang1 --> <td width="3%">&#160;</td><!-- colindex=03 type=gutter --> <td width="1%" align="right">&#160;</td><!-- colindex=03 type=lead --> <td width="8%" align="right">&#160;</td><!-- colindex=03 type=body --> <td width="1%" align="left">&#160;</td><!-- colindex=03 type=hang1 --> <td width="3%">&#160;</td><!-- colindex=04 type=gutter --> <td width="1%" align="right">&#160;</td><!-- colindex=04 type=lead --> <td width="8%" align="right">&#160;</td><!-- colindex=04 type=body --> <td width="1%" align="left">&#160;</td><!-- colindex=04 type=hang1 --> </tr> <!-- Table Width Row END --> <!-- TableOutputHead --> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>Year Ended<br /> </b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>Year Ended<br /> </b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>Year Ended<br /> </b> </td> <td> &#160; </td> </tr> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>December&#160;31,<br /> </b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>December&#160;31,<br /> </b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>December&#160;31,<br /> </b> </td> <td> &#160; </td> </tr> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>2009</b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>2008</b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>2007</b> </td> <td> &#160; </td> </tr> <tr style="line-height: 3pt; font-size: 1pt"> <td>&#160; </td> </tr> <!-- TableOutputBody --> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> The Netherlands taxes&#160;&#8212; current </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>4</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (1 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (4 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Foreign taxes&#160;&#8212; current </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(54</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (25 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (121 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> </tr> <tr valign="bottom" style="font-size: 1pt"> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Current taxes </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(50</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (26 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (125 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Foreign deferred taxes </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>145</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 69 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 148 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="font-size: 1pt"> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Income tax benefit </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>95</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 43 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 23 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="font-size: 1pt"> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 3px double #000000"> &#160; </td> <td style="border-top: 3px double #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 3px double #000000"> &#160; </td> <td style="border-top: 3px double #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 3px double #000000"> &#160; </td> <td style="border-top: 3px double #000000"> &#160; </td> <td> &#160; </td> </tr> </table> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The principal items comprising the differences in income taxes computed at the Netherlands statutory rate of 25.5% in 2009, 2008 and 2007, and the effective income tax rate are the following: </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <table border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff; text-align: left"> <!-- Table Width Row BEGIN --> <tr style="font-size: 1pt" valign="bottom"> <td width="62%">&#160;</td><!-- colindex=01 type=maindata --> <td width="2%">&#160;</td><!-- colindex=02 type=gutter --> <td width="1%" align="right">&#160;</td><!-- colindex=02 type=lead --> <td width="8%" align="right">&#160;</td><!-- colindex=02 type=body --> <td width="1%" align="left">&#160;</td><!-- colindex=02 type=hang1 --> <td width="3%">&#160;</td><!-- colindex=03 type=gutter --> <td width="1%" align="right">&#160;</td><!-- colindex=03 type=lead --> <td width="8%" align="right">&#160;</td><!-- colindex=03 type=body --> <td width="1%" align="left">&#160;</td><!-- colindex=03 type=hang1 --> <td width="3%">&#160;</td><!-- colindex=04 type=gutter --> <td width="1%" align="right">&#160;</td><!-- colindex=04 type=lead --> <td width="8%" align="right">&#160;</td><!-- colindex=04 type=body --> <td width="1%" align="left">&#160;</td><!-- colindex=04 type=hang1 --> </tr> <!-- Table Width Row END --> <!-- TableOutputHead --> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>Year Ended<br /> </b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>Year Ended<br /> </b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>Year Ended<br /> </b> </td> <td> &#160; </td> </tr> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>December&#160;31,<br /> </b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>December&#160;31,<br /> </b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>December&#160;31,<br /> </b> </td> <td> &#160; </td> </tr> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>2009</b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>2008</b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>2007</b> </td> <td> &#160; </td> </tr> <tr style="line-height: 3pt; font-size: 1pt"> <td>&#160; </td> </tr> <!-- TableOutputBody --> <tr valign="bottom"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Income tax benefit computed at statutory rate </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>382</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 210 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 126 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Non-deductible, non-taxable and other permanent differences, net </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(34</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (20 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> </tr> <tr valign="bottom"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Loss on equity investment </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(84</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (139 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Valuation allowance adjustments </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(56</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (18 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (1 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> </tr> <tr valign="bottom"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Impact of prior years adjustments </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>21</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 48 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (17 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> </tr> <tr valign="bottom"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Effects of change in enacted tax rate on deferred taxes </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(7</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (21 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> </tr> <tr valign="bottom"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Current year credits </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>76</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 66 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 63 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Other tax and credits </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(4</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 2 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (3 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> </tr> <tr valign="bottom"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Benefits from tax holidays </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>2</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 34 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 122 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Current year tax risk </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(23</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (31 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; 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</td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(178</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (52 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (113 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> </tr> <tr valign="bottom" style="font-size: 1pt"> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Income tax benefit (expense) </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>95</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 43 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 23 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="font-size: 1pt"> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 3px double #000000"> &#160; </td> <td style="border-top: 3px double #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 3px double #000000"> &#160; </td> <td style="border-top: 3px double #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 3px double #000000"> &#160; </td> <td style="border-top: 3px double #000000"> &#160; </td> <td> &#160; </td> </tr> </table> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The lines &#8220;Impact of prior years&#8217; adjustments&#8221; and &#8220;Current year tax risk&#8221; include amounts that are further disclosed in the uncertain tax position reconciliation table included in this note. </div> <div style="margin-top: 6pt; 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These tax credits, totaling $146&#160;million and $161&#160;million, were reported as a reduction of research and development expenses in the statement of income for the years ended December&#160;31, 2009 and 2008, respectively. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> In 2009 and 2008, the line &#8220;Earnings of subsidiaries taxed at different rates&#8221; includes a decrease of $123&#160;million and $99&#160;million, respectively, related to significant losses in countries subject to tax holidays. In 2007, this line includes a $97&#160;million decrease related to the FMG deconsolidation for amounts that were deductible in tax jurisdictions with statutory tax rates substantially below the Netherlands statutory rate. In 2009, the Company received $121&#160;million for research tax credits for the period prior to January&#160;1, 2009 resulting in a decrease in deferred tax assets of the same amount. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The tax holidays represent a tax exemption period aimed to attract foreign technological investment in certain tax jurisdictions. The effect of the tax benefits on basic earnings per share was $0.00, $0.04, and $0.14 for the years ended December&#160;31, 2009, 2008, and 2007, respectively. These agreements are present in various countries and include programs that reduce up to and including 100% of taxes in years affected by the agreements. 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</td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 1,086 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Pension service costs </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>41</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 39 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Stock awards </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>11</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 26 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Commercial accruals </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>7</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 9 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Other temporary differences </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>62</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 45 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Total deferred tax assets </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>2,056</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 2,049 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; 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The &#8220;Tax allowances granted on past capital investments&#8221; mainly related to a 2003 agreement granting the Company certain tax credits for capital investments purchased through the year ending December&#160;31, 2006. Any unused tax credits granted under the agreement will continue to increase yearly by a legal inflationary index (currently 1.45% per annum). The credits may be utilized through 2020 or later depending on the Company meeting certain program criteria. In addition to this agreement, starting in 2007 the Company continues to receive tax credits on the yearly capital investments, which may be used to offset that year&#8217;s tax liabilities and increases by the legal inflationary rate. However, pursuant to the inability to utilize these credits currently and in future years, the Company did not recognize any deferred tax asset on such tax allowance. 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margin-left: 10pt"> <b>Balance at December&#160;31, 2008</b> </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> $ </td> <td nowrap="nowrap" align="right" valign="bottom"> 153 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Additions based on tax positions related to the current year </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 38 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Additions for tax positions of prior years </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 10 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; 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</td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>Total</b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>2010</b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>2011</b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>2012</b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>2013</b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>2014</b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>Thereafter</b> </td> <td> &#160; </td> </tr> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="26" align="center" valign="bottom"> <b>In million US$</b> </td> <td> &#160; </td> </tr> <tr style="line-height: 3pt; font-size: 1pt"> <td>&#160; </td> </tr> <!-- TableOutputBody --> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Operating leases </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>$</b> </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>481</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> $ </td> <td nowrap="nowrap" align="right" valign="bottom"> 131 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> $ </td> <td nowrap="nowrap" align="right" valign="bottom"> 98 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; 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</td> <td nowrap="nowrap" align="right" valign="bottom"> <b>741</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 604 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 62 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 37 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 20 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 18 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> of which: </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 20pt"> <i>Equipment purchase</i> </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b><i>267</i></b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <i>267</i> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 20pt"> <i>Foundry purchase</i> </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b><i>182</i></b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <i>182</i> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 20pt"> <i>Software, technology licenses and design</i> </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b><i>292</i></b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <i>155</i> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <i>62</i> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <i>37</i> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <i>20</i> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <i>18</i> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Other obligations </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>532</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 263 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 135 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 125 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 6 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 2 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 1 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="font-size: 1pt"> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> <b>Total</b> </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>1,754</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>998</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>295</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; 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</td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> </tr> </table> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> As a consequence of the Company&#8217;s July&#160;10, 2007 announcement concerning the planned closures of certain of its manufacturing facilities, the shutdown of its plants in the United States is ongoing and negotiations with some of its suppliers continue. As no final date has been set, some of the contracts as reported above have been terminated. The termination fees for the sites still in operation have not been taken into account. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Operating leases are mainly related to building and equipment leases. The amount disclosed is composed of minimum payments for future leases from 2010 to 2014 and thereafter. The Company leases land, buildings, plants and equipment under operating leases that expire at various dates under non-cancellable lease agreements. 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Furthermore, the Company has umbrella facilities for an amount of $480&#160;million extendable to its subsidiaries on a fully guaranteed basis. 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It provides written principles for overall risk management, as well as written policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments, and investment of excess liquidity. The majority of cash and cash equivalent is held in U.S.&#160;dollars and Euro and is placed with financial institutions rated at least a single &#8220;A&#8221; long term rating from two of the major rating agencies, meaning at least A3 from Moody&#8217;s Investor Service and A- from Standard&#160;&#038; Poor&#8217;s and Fitch Ratings. Marginal amounts are held in other currencies. 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As such, the foreign exchange exposure of the Company, which consists in the balance sheet positions and other contractually agreed transactions, is always equivalent to zero and any movement of the foreign exchange rates will not therefore influence the exchange effect on consolidated statements of income items. 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</div> <div align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b><i><font style="font-family: 'Times New Roman', Times">Cash flow and fair value interest rate risk</font></i></b> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The Company&#8217;s interest rate risk arises from long-term borrowings. Borrowings issued at variable rates expose the Company to cash flow interest rate risk. Borrowings issued at fixed rates expose the Company to fair value interest rate risk. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The Company analyses its interest rate exposure on a dynamic basis. Various scenarios are simulated taking into consideration refinancing, renewal of existing positions, alternative financing and hedging. Since all the liquidity of the Company is invested in floating rate instruments, the Company&#8217;s interest rate risk arises from the mismatch of fixed rate liabilities and floating rate assets. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> In 2006, the Company entered into cancellable swaps with a combined notional value of $200&#160;million to hedge the fair value of a portion of the convertible bonds due 2016 carrying a fixed interest rate. The cancellable swaps converted the fixed rate interest expense recorded on the convertible bond due 2016 to a variable interest rate based upon adjusted LIBOR. As of December&#160;31, 2007 the cancellable swaps met the criteria for designation as a fair value hedge and, as such, both the swaps and the hedged portion of the bonds were reflected at their fair values in the consolidated balance sheet. The criteria for designating a derivative as a hedge include evaluating whether the instrument is highly effective at offsetting changes in the fair value of the hedged item attributable to the hedged risk. Hedged effectiveness was assessed on both a prospective and retrospective basis at each reporting period. Any ineffectiveness of the hedge relationship was recorded as a gain or loss on derivatives as a component of &#8220;Other income and expenses, net&#8221; in the consolidated statements of income. 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The Company determined that the swaps had been no longer effective at offsetting changes in the fair value of the hedged bonds since November&#160;1, 2008 and the fair value hedge relationship was consequently discontinued on that date. Unrealised gain recognized in earnings from discontinuance date totalled $15&#160;million and was reported on the line &#8220;Gain(loss) on financial assets&#8221; of the consolidated statements of income for the year ended December&#160;31, 2008. 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</td> <td> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Total derivatives designated as hedging instruments </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(27</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; 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</td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Foreign exchange forward contracts </div> </td> <td> &#160; </td> <td align="left" valign="bottom"> Other payables and accrued liabilities </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(7</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> <td> &#160; </td> <td align="left" valign="bottom"> Other payables and accrued liabilities </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (1 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="top"> <div style="text-indent: -10pt; 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</td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (1 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> </tr> <tr valign="bottom" style="font-size: 1pt"> <td> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Total Derivatives </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; 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color: #000000; background: #ffffff"> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The effect on the consolidated statements of income for the year ended December&#160;31, 2009 and December&#160;31, 2008 of derivative instruments designated as fair value hedge is presented in the table below: </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <table border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff; text-align: left"> <!-- Table Width Row BEGIN --> <tr style="font-size: 1pt" valign="bottom"> <td width="28%">&#160;</td><!-- colindex=01 type=maindata --> <td width="2%">&#160;</td><!-- colindex=02 type=gutter --> <td width="46%">&#160;</td><!-- colindex=02 type=maindata --> <td width="3%">&#160;</td><!-- colindex=03 type=gutter --> <td width="5%" align="right">&#160;</td><!-- colindex=03 type=lead --> <td width="1%" align="right">&#160;</td><!-- colindex=03 type=body --> <td width="5%" align="left">&#160;</td><!-- colindex=03 type=hang1 --> <td width="3%">&#160;</td><!-- colindex=04 type=gutter --> <td width="3%" align="right">&#160;</td><!-- colindex=04 type=lead --> <td width="1%" align="right">&#160;</td><!-- colindex=04 type=body --> <td width="3%" align="left">&#160;</td><!-- colindex=04 type=hang1 --> </tr> <!-- Table Width Row END --> <!-- TableOutputHead --> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="center" valign="bottom"> &#160; 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margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <i><font style="font-family: 'Times New Roman', Times">Credit risk</font></i> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The Company selects banks <font style="white-space: nowrap">and/or</font> financial institutions that operate with the group based on the criteria of long term rating from at least two major Rating Agencies and keeping a maximum outstanding amount per instrument with each bank group not to exceed 20% of the total. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Due to the credit market turmoil, the Company has decided to further tighten the counterparty concentration and credit risk profile. The maximum outstanding counterparty risk has been reduced and currently does not exceed 15% for major international banks with large market capitalization. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The Company monitors the creditworthiness of its customers to which it grants credit terms in the normal course of business. If certain customers are independently rated, these ratings are used. Otherwise, if there is no independent rating, risk control assesses the credit quality of the customer, taking into account its financial position, past experience and other factors. Individual risk limits are set based on internal and external ratings in accordance with limits set by management. The utilisation of credit limits is regularly monitored. Sales to customers are primarily settled in cash. At December&#160;31, 2009 and 2008, one customer, the Nokia Group of companies, represented 20.8% and 16.7% of trade accounts receivable, net respectively. Any remaining concentrations of credit risk with respect to trade receivables are limited due to the large number of customers and their dispersion across many geographic areas. </div> <div style="margin-top: 12pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <i><font style="font-family: 'Times New Roman', Times">Liquidity risk</font></i> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Prudent liquidity risk management includes maintaining sufficient cash and cash equivalents, short-term deposits and marketable securities, the availability of funding from committed credit facilities and the ability to close out market positions. The Company&#8217;s objective is to maintain a significant cash position and a low debt to equity ratio, which ensure adequate financial flexibility. Liquidity management policy is to finance the Company&#8217;s investments with net cash provided from operating activities. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Management monitors rolling forecasts of the Company&#8217;s liquidity reserve on the basis of expected cash flows. </div> <div style="margin-top: 12pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b><font style="font-family: 'Times New Roman', Times">25.2 Capital risk management</font></b> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The Company&#8217;s objectives when managing capital are to safeguard the Company&#8217;s ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, or issue new shares. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Consistent with others in the industry, the Company monitors capital on the basis of the <font style="white-space: nowrap">debt-to-equity</font> ratio. This ratio is calculated as the net financial position of the Company, defined as the difference between total cash position (cash and cash equivalents, marketable securities&#160;&#8212; current and non-current-, short-term deposits and restricted cash) net of total financial debt (bank overdrafts, current portion of long-term debt and long-term debt), divided by total equity attributable to the shareholders of the Company. </div> <div style="margin-top: 12pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b><font style="font-family: 'Times New Roman', Times">25.3 Fair value measurement</font></b> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The fair values of quoted financial instruments are based on current market prices. The fair value of financial instruments traded in active markets is based on quoted market prices at the balance sheet date. The quoted market price used for financial assets held by the Company is the bid price. If the market for a financial asset is not active and if no observable market price is obtainable, the Company measures fair value by using significant assumptions and estimates. In measuring fair value, the Company makes maximum use of market inputs and relies as little as possible on entity-specific inputs. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The table below details financial assets (liabilities) measured at fair value on a recurring basis as at December&#160;31, 2009: </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <table border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff; text-align: left"> <!-- Table Width Row BEGIN --> <tr style="font-size: 1pt" valign="bottom"> <td width="39%">&#160;</td><!-- colindex=01 type=maindata --> <td width="2%">&#160;</td><!-- colindex=02 type=gutter --> <td width="4%" align="right">&#160;</td><!-- colindex=02 type=lead --> <td width="1%" align="right">&#160;</td><!-- colindex=02 type=body --> <td width="4%" align="left">&#160;</td><!-- colindex=02 type=hang1 --> <td width="3%">&#160;</td><!-- colindex=03 type=gutter --> <td width="6%" align="right">&#160;</td><!-- colindex=03 type=lead --> <td width="1%" align="right">&#160;</td><!-- colindex=03 type=body --> <td width="6%" align="left">&#160;</td><!-- colindex=03 type=hang1 --> <td width="3%">&#160;</td><!-- colindex=04 type=gutter --> <td width="6%" align="right">&#160;</td><!-- colindex=04 type=lead --> <td width="1%" align="right">&#160;</td><!-- colindex=04 type=body --> <td width="6%" align="left">&#160;</td><!-- colindex=04 type=hang1 --> <td width="3%">&#160;</td><!-- colindex=05 type=gutter --> <td width="7%" align="right">&#160;</td><!-- colindex=05 type=lead --> <td width="1%" align="right">&#160;</td><!-- colindex=05 type=body --> <td width="7%" align="left">&#160;</td><!-- colindex=05 type=hang1 --> </tr> <!-- Table Width Row END --> <!-- TableOutputHead --> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="11" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>Fair Value Measurements Using</b> </td> </tr> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom"> <b>Quoted Prices in<br /> </b> </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom"> &#160; </td> </tr> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom"> <b>Active Markets for<br /> </b> </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom"> <b>Significant Other<br /> </b> </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom"> <b>Significant<br /> </b> </td> </tr> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom"> <b>December&#160;31,<br /> </b> </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom"> <b>Identical Assets<br /> </b> </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom"> <b>Observable Inputs<br /> </b> </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom"> <b>Unobservable Inputs<br /> </b> </td> </tr> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>2009</b> </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>(Level 1)</b> </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>(Level 2)</b> </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>(Level 3)</b> </td> </tr> <tr style="line-height: 3pt; font-size: 1pt"> <td>&#160; </td> </tr> <!-- TableOutputBody --> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> <b>Description</b> </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> In millions of U.S. dollars </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> <font style="white-space: nowrap">Available-for-sale</font> marketable debt securities </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>1,032</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 1,021 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 11 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> <font style="white-space: nowrap">Available-for-sale</font> non-current marketable debt securities </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>42</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 42 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> <font style="white-space: nowrap">Available-for-sale</font> long term subordinated notes </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>173</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 173 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> <font style="white-space: nowrap">Available-for-sale</font> equity securities </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>10</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 10 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Equity securities held for trading </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>7</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 7 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Derivative instruments designated as cash flow hedge </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>6</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 6 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Derivative instruments not designated as hedge </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(4</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (4 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> </table> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> </div> <!-- XBRL Pagebreak Begin --> </div> <!-- END PAGE WIDTH --> <!-- PAGEBREAK --> <div style="margin-left: 0%"> <!-- BEGIN PAGE WIDTH --> <div style="margin-top: 0pt; font-size: 1pt"> </div> <div align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b> <font style="font-family: 'Times New Roman', Times"> </font> </b> </div> <!-- XBRL Pagebreak End --> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> For assets measured at fair value on a recurring basis using significant unobservable inputs (Level&#160;3), the reconciliation between January&#160;1, 2009 and December&#160;31, 2009 is presented as follows: </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <table border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff; text-align: left"> <!-- Table Width Row BEGIN --> <tr style="font-size: 1pt" valign="bottom"> <td width="77%">&#160;</td><!-- colindex=01 type=maindata --> <td width="2%">&#160;</td><!-- colindex=02 type=gutter --> <td width="1%" align="right">&#160;</td><!-- colindex=02 type=lead --> <td width="19%" align="right">&#160;</td><!-- colindex=02 type=body --> <td width="1%" align="left">&#160;</td><!-- colindex=02 type=hang1 --> </tr> <!-- Table Width Row END --> <!-- TableOutputHead --> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>Fair Value<br /> </b> </td> <td> &#160; </td> </tr> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>Measurements Using<br /> </b> </td> <td> &#160; </td> </tr> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>Significant<br /> </b> </td> <td> &#160; </td> </tr> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>Unobservable Inputs<br /> </b> </td> <td> &#160; </td> </tr> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="center" valign="bottom"> &#160; 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</td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="11" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>Fair Value Measurements Using</b> </td> </tr> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom"> <b>Quoted Prices in<br /> </b> </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom"> &#160; </td> </tr> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom"> &#160; 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</td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> In millions of U.S. dollars </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Investments in equity securities carried at cost </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>29</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 29 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Numonyx equity investment </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>193</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; 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</td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 31 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> <b>Total</b> </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>253</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 31 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 222 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> </table> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> For assets (liabilities) measured at fair value on a non recurring basis using significant unobservable inputs (Level&#160;3), the reconciliation between January&#160;1, 2009 and December&#160;31, 2009 is presented as follows: </div> <div style="margin-top: 6pt; 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</td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> &#8212;&#160;Convertible debt </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>943</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>918</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 1,036 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 918 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; 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margin-left: 10pt"> Senior debt floating rate notes </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 105 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (2 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 209 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (7 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 314 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (9 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Long-term subordinated notes </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 173 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (11 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; 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</td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> </tr> </table> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The methodologies used to estimate fair value are as follows: </div> <div style="margin-top: 12pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b><font style="font-family: 'Times New Roman', Times">Marketable securities</font></b> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The fair value of floating rate notes is estimated based upon quoted market prices for the identical instruments. For Lehman Brothers senior unsecured bonds, fair value measurement was reassessed in 2008 from a Level&#160;1 fair value measurement hierarchy to a Level&#160;3 following Lehman Brothers Chapter&#160;11 filing. 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These include, but are not limited to: Areva, France Telecom Orange, Finmeccanica, Cassa Depositi e Prestiti, Flextronics, Oracle and Thomson. The related party transactions presented in the table above also include transactions between the Company and its equity investments as listed in Note&#160;11. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Since the formation of ST-Ericsson, the Company purchases R&#038;D services from ST-Ericsson AT (&#8220;JVD&#8221;), a significant equity investment of the Company. 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These costs were reimbursed by Numonyx in 2008 following the closing of the transaction. Upon creation, Numonyx also entered into financing arrangements for a $450&#160;million term loan and a $100&#160;million committed revolving credit facility from two primary financial institutions. Intel and the Company have each granted in favor of Numonyx a 50% debt guarantee not joint and several. This debt guarantee is described in details in Note&#160;11. The final terms at the closing date of the agreements on assets to be contributed included rights granted to Numonyx by the Company to use certain assets retained by the Company. The Company recorded a provision amounting respectively to $65&#160;million and $87&#160;million, as at December&#160;31, 2009 and 2008, to reflect the value of such rights granted to its equity investment. The parties also retained the obligation to fund the severance payment (&#8220;trattamento di fine rapporto&#8221;) due to certain transferred employees which qualifies as a defined benefit plan and was classified on the line &#8220;Other non-current liabilities&#8221;. The liability amounted to respectively $31&#160;million and $35&#160;million as at December&#160;31, 2009 and 2008. Finally, the Company recorded in 2008 a net long-term receivable amounting to $6&#160;million corresponding to a tax credit Numonyx will pay back to the Company once cashed-in from the relevant taxing authorities. As at December&#160;31, 2009, this receivable is still outstanding. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Additionally the Company incurred in 2008 and 2007 amounts on transactions with Hynix Semiconductor Inc., with which the Company had until March&#160;30, 2008 a significant equity investment, Hynix Numonyx joint venture (formerly Hynix ST joint venture), described in detail in Note&#160;11. In 2007 and 2006, Hynix Semiconductor Inc. increased its business transactions with the Company in order to supply products on behalf of the joint venture, which was not ready to fully produce and supply the volumes of specific products as requested by the Company. The amount of purchases and other expenses from Hynix Semiconductor Inc. was $161&#160;million in 2007. The amount of sales and other services made in 2007 was $2&#160;million. These transactions significantly decreased in 2008 upon the transfer of the joint venture to Numonyx, as described in Note&#160;11. The amount of purchases and other expenses and the amount of sales and other services from Hynix Semiconductor Inc. was $2&#160;million and $5&#160;million in 2008, respectively. 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</td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Automotive Products Group (&#8220;APG&#8221;) </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 1,051 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 1,460 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 1,419 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Computer and Communication Infrastructure (&#8220;CCI&#8221;) </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 932 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 1,077 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 1,123 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Home Entertainment&#160;&#038; Displays (&#8220;HED&#8221;) </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 787 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 1,086 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 963 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Imaging (&#8220;IMG&#8221;) </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 417 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 499 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 439 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Others </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 11 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 7 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; 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</td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 936 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 825 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Others </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 2 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> <b>Industrial and Multisegment Sector (IMS)</b> </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>2,641</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 3,329 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 3,138 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; 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</td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 60 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> <b>Flash Memory Group (FMG)</b> </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 299 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 1,364 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; 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</td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> <b>Total</b> </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>8,510</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 9,842 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 10,001 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="font-size: 1pt"> <td> &#160; 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margin-left: 10pt"> The Netherlands </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>24</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 14 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> France </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>1,623</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 1,728 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; 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</td> <td nowrap="nowrap" align="right" valign="bottom"> 229 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> USA </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>74</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 217 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Singapore </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>546</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 675 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Malaysia </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>264</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 306 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Other countries </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; 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</td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 66 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 53 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> USA </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>6</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 2 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; 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(&#8220;Micron&#8221;), pursuant to which Micron will acquire Numonyx in an all-stock transaction. Upon the closing of the transaction, which is subject to customary regulatory approvals, and based on Micron&#8217;s closing stock price on February&#160;9, 2010 of $9.08 per share, the Company will receive&#160;&#8212; in exchange for our 48.6% stake in Numonyx and the cancellation of the <font style="white-space: nowrap">30-year</font> note due to the Company by Numonyx&#160;&#8212; approximately 66.6&#160;million shares of Micron common stock (taking into account a payable of $77.8&#160;million due by the Company to Francisco Partners). At closing, Numonyx will repay the full amount of its outstanding $450&#160;million term loan, while simultaneously terminating the Company&#8217;s $225&#160;million guarantee of its debt. There is no guaranty as to when, or if, the transaction will close. </div> <!-- XBRL Pagebreak Begin --> </div> <!-- END PAGE WIDTH --> <!-- PAGEBREAK --> <div style="margin-left: 0%"> <!-- BEGIN PAGE WIDTH --> <!-- XBRL Pagebreak End --> </div> <!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <!-- Begin Block Tagged Note 29 - us-gaap:ScheduleOfValuationAndQualifyingAccountsDisclosureTextBlock--> <div style="margin-left: 0%"> <div style="display: none"> Schedule Of Valuation And Qualifying Accounts Disclosure </div> <br /> <div style="margin-top: 18pt; font-size: 1pt">&#160; </div> <div align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b><font style="font-family: 'Times New Roman', Times">STMICROELECTRONICS N.V.<br /> </font></b> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="center" 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</td> </tr> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="26" align="center" valign="bottom"> <b>In million US$</b> </td> <td> &#160; </td> </tr> <tr style="line-height: 3pt; font-size: 1pt"> <td>&#160; </td> </tr> <!-- TableOutputBody --> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Operating leases </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>$</b> </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>481</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> $ </td> <td nowrap="nowrap" align="right" valign="bottom"> 131 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> $ </td> <td nowrap="nowrap" align="right" valign="bottom"> 98 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; 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</td> <td nowrap="nowrap" align="right" valign="bottom"> <b>741</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 604 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 62 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 37 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 20 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 18 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> of which: </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 20pt"> <i>Equipment purchase</i> </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b><i>267</i></b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <i>267</i> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 20pt"> <i>Foundry purchase</i> </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b><i>182</i></b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <i>182</i> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; 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</td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <i>20</i> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <i>18</i> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Other obligations </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>532</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 263 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 135 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 125 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 6 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 2 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; 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</td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> </tr> </table> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; 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As no final date has been set, some of the contracts as reported above have been terminated. The termination fees for the sites still in operation have not been taken into account. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Operating leases are mainly related to building and equipment leases. The amount disclosed is composed of minimum payments for future leases from 2010 to 2014 and thereafter. The Company leases land, buildings, plants and equipment under operating leases that expire at various dates under non-cancellable lease agreements. Operating lease expenses was $174&#160;million, $92&#160;million and $62&#160;million for the years ended December&#160;31, 2009, 2008 and 2007, respectively. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Purchase obligations are primarily comprised of purchase commitments for equipment, for outsourced foundry wafers and for software licenses. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Other obligations primarily relate to firm contractual commitments with respect to partnership and cooperation agreements. </div> <div style="margin-top: 12pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b><i><font style="font-family: 'Times New Roman', Times">Other commitments</font></i></b> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The Company has issued guarantees totalling $733&#160;million related to its subsidiaries&#8217; debt. 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</td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 670 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (543 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 14 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; 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font-size: 1pt">&#160; </div> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff; text-align: left"> <tr> <td width="1%"></td> <td width="1%"></td> <td width="98%"></td> </tr> <tr> <td valign="top"> <font style="font-size: 8pt">* </font></td> <td></td> <td valign="bottom"> <font style="font-size: 8pt">Other Comprehensive Income </font></td> </tr> </table> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The floating rate notes and the government bonds are reported as current assets on the line &#8220;Marketable Securities&#8221; on the consolidated balance sheet as at December&#160;31, 2009, since they represent investments of funds available for current operations. The auction-rate securities, which have a final maturity up to 40&#160;years, were purchased in the Company&#8217;s account by Credit Suisse Securities LLC contrary to the Company&#8217;s instructions; they are classified as non-current assets on the line &#8220;Non-current marketable securities&#8221; on the consolidated balance sheet as at December&#160;31, 2009. On February&#160;16, 2009, the Company announced that an arbitration panel of the Financial Industry Regulatory Authority (&#8220;FINRA&#8221;), in a full and final resolution of the issues submitted for determination, awarded the Company, in connection with such unauthorized auction rate securities, approximately $406&#160;million, comprising compensatory damages, as well as interest, attorney&#8217;s fees and consequential damages, which were assessed against Credit Suisse. In addition, the Company is entitled to retain an interest award of approximately $27&#160;million, out of which $25&#160;million has already been paid, plus interest at the rate of 4.64% on the par value of the portfolio from December&#160;31, 2008 until the award is paid in full. The Company has petitioned the United States District Court for the Southern District of New York seeking enforcement of the award. Credit Suisse has responded by seeking to vacate the FINRA award. Upon receipt of the award, the Company will transfer ownership of the portfolio of unauthorized auction rate securities to Credit Suisse. Until the award is executed, the Company will continue to own the Auction Rate Securities and, consequently, will account for them in the same manner as in the prior periods. In December 2009, Credit Suisse, because of its contingent interest in certain securities held by us and issued by Deutsche Bank, requested that we either tender the securities or accept that the amount that would be received by us pursuant to such tender ($75&#160;million) be deducted from the sum to be collected by us if and when the FINRA award is confirmed and enforced. Pursuant to legal advice, and while reserving our legal rights, we participated in the tender offer and paid $0.49 per dollar of face value. As a result, we sold Auction Rate Securities with a face value of $154&#160;million, collected $75&#160;million and registered $68&#160;million as realized losses on financial assets. Losses as a result of this transaction should be recovered upon collection of the award. The Company is seeking confirmation of the award from the United States District Court of the Southern District of New&#160;York. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> No significant gain or loss was included in earnings as a result of floating rate notes sales. Out of the fifteen investment positions in floating-rate notes, with the only exception of a senior floating rate note of Euro&#160;15&#160;million issued by Lehman Brothers whose impairment was recorded as other-than-temporary in 2008, nine positions are in an unrealized loss position, which has been considered as temporary. For all floating rate notes, except the Lehman Brothers senior unsecured bonds described below, the Company expects to recover the debt securities&#8217; entire amortized cost basis. Since the duration of the floating rate note portfolio is less than two years on average and the securities have a minimum Moody&#8217;s rating of A3 (with the only exception of the Lehman Brothers senior unsecured bonds), the Company expects the value of the securities to return to par as the final maturity is approaching. In addition, the Company does not expect to be required to sell the securities before maturity. As such, no credit loss has been identified on these instruments. Thus, under the new clarifying guidance on other-than-temporary impairments issued in April 2009, as described in details in Note&#160;2.25, these declines in fair value are considered as temporary. As a result, the change in fair value is recognized as a separate component of &#8220;Accumulated other comprehensive income (loss)&#8221; in the consolidated statements of changes in equity and no cumulative effect adjustment was recorded in 2009 upon adoption of such guidance. The Company estimated the fair value of these financial assets based on publicly quoted market prices, which corresponds to a level&#160;1 fair value measurement hierarchy. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> For the Lehman Brothers senior unsecured bonds, the Company has been measuring fair value since Lehman Brothers Chapter&#160;11 filing on September&#160;15, 2008 based on information received from a major credit rating entity. Such fair value information relies on historical recovery rates and is assessed to correspond to a level&#160;3 fair value hierarchy. At the date of Lehman Brothers Chapter&#160;11 filing, the Company did not expect to recover the entire amortized cost basis of the securities and reported in earnings an other-than-temporary impairment charge representing 50% of the face value of the debt securities. Since all of this other-than-temporary impairment charge corresponded to credit losses, no cumulative effect adjustment was recorded in 2009 upon adoption of the new accounting guidance on recognition and presentation of other-than-temporary impairment charges. As at December&#160;31, 2009, the Company assessed that it expected to recover the impaired amortized cost basis of the Lehman Brothers debt securities amounting to $11&#160;million and no additional other-than-temporary impairment charge was recorded on the Lehman Brothers senior unsecured bonds in 2009. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The Company invested in 2009 $1,730&#160;million in French and U.S.&#160;government bonds, of which $1,263&#160;million was sold or matured in 2009. In 2009, the Company realized in earnings a $14&#160;million exchange gain upon the sale of Euro&#160;100&#160;million French Government bonds. The change in fair value of the $484&#160;million government debt securities classified as available-for-sale was not material as at December&#160;31, 2009. The Company estimated the fair value of these financial assets based on publicly quoted market prices, which corresponds to a level&#160;1 fair value measurement hierarchy. The duration of the government bonds portfolio is less than five months on average and the securities are rated Aaa by Moody&#8217;s. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Until the FINRA award is executed, the ownership of the auction-rate securities must be considered as a separate unit of accounting for impairment assessment. Consequently, upon adoption of the new accounting guidance on recognition and presentation of other-than-temporary impairment charges, the Company determined that in the assumption that the FINRA award was not executed the Company would not expect to recover the entire amortized cost basis of the securities resulting in an impairment of the securities based on credit losses. Consequently, the Company reported an other-than-temporary decline in fair value amounting to $72&#160;million in 2009, which was immediately reported in the consolidated statement of income on the line &#8220;Other-than-temporary impairment charge on financial assets&#8221;. As this impairment assessment was in line with past accounting practice, no cumulative effect adjustment was recorded in 2009 upon adoption of the new accounting guidance. From the first quarter of 2008, the fair value measure of these securities, which corresponds to a level&#160;3 fair value hierarchy, was based on a theoretical model using yields obtainable for comparable assets. The value inputs for the evaluation of these securities were publicly available indexes of securities with the same rating, similar duration and comparable/similar underlying collaterals or industries exposure (such as ABX for the collateralized debt obligation, ITraxx and IBoxx for the credit-linked notes), which the Company believes approximates the orderly exit value in the current market. In 2009, the value of the remaining ARS securities increased in value by $15&#160;million, which has been recorded as a separate component of &#8220;Accumulated other comprehensive income (loss)&#8221; in the consolidated statements of changes in equity. The estimated value of these securities could further decrease due to a deterioration of the corporate industry indexes used for the evaluation. Fair value measurement information is further detailed in Note&#160;25. </div> </div> false false false This item represents the entire disclosure related to Available-for-sale Securities which consist of all investments in certain debt and equity securities neither classified as trading or held-to-maturity securities. A debt security represents a creditor relationship with an enterprise. Debt securities include, among other items, US Treasury securities, US government securities, municipal securities, corporate bonds, convertible debt, commercial paper, and all securitized debt instruments. An equity security represents an ownership interest in an enterprise or the right to acquire or dispose of an ownership interest in an enterprise at fixed or determinable prices. Equity securities include, among other things, common stock, certain preferred stock, warrant rights, call options, and put options, but do not include convertible debt. An entity may opt to provide the reader with additional narrative text to better understand the nature of investments in debt and equity securities which are categorized as Available-for-sale. 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(the &#8220;Company&#8221;) is registered in The Netherlands with its corporate legal seat in Amsterdam, the Netherlands, and its corporate headquarters located in Geneva, Switzerland. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The Company is a global independent semiconductor company that designs, develops, manufactures and markets a broad range of semiconductor integrated circuits (&#8220;ICs&#8221;) and discrete devices. The Company offers a diversified product portfolio and develops products for a wide range of market applications, including automotive products, computer peripherals, telecommunications systems, consumer products, industrial automation and control systems. 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</td> <td nowrap="nowrap" align="right" valign="bottom"> (1 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Actuarial (gain) loss </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>29</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 15 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(1</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 1 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Transfer in </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>12</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 70 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>1</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 8 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Transfer out </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(5</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (53 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(1</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (5 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Plan amendment </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (3 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Foreign currency translation adjustment </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>23</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (46 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>1</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (3 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> </tr> <tr valign="bottom"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> <b>Benefit obligation at end of year</b> </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>654</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 587 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>43</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 42 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> <b>Change in plan assets:</b> </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Plan assets at fair value at beginning of year </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>262</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 278 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Expected return on plan assets </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>16</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 18 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Employer contributions </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>46</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 16 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Employee contributions </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>5</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 2 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Benefits paid </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(13</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (11 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Effect of settlement </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(14</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (2 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Actuarial gain (loss) </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>25</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (59 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Transfer in </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>7</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 54 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Transfer out </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(6</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (5 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Foreign currency translation adjustments </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>11</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (28 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Other </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (1 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> <b>Plan assets at fair value at end of year</b> </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>339</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 262 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> <b>Funded status</b> </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(315</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (325 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(43</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (42 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> <b>Net amount recognized in the balance sheet consisted of the following:</b> </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Non current assets </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>2</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 1 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Current liabilities </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(8</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (5 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(9</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (2 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> </tr> <tr valign="bottom"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Non Current liabilities </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(309</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (321 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(34</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (40 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> <b>Net amount recognized</b> </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(315</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (325 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(43</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (42 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> </tr> </table> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The components of accumulated other comprehensive income (loss) before tax effects were as follows: </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <table border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff; text-align: left"> <!-- Table Width Row BEGIN --> <tr style="font-size: 1pt" valign="bottom"> <td width="71%">&#160;</td><!-- colindex=01 type=maindata --> <td width="2%">&#160;</td><!-- colindex=02 type=gutter --> <td width="1%" align="right">&#160;</td><!-- colindex=02 type=lead --> <td width="7%" align="right">&#160;</td><!-- colindex=02 type=body --> <td width="1%" align="left">&#160;</td><!-- colindex=02 type=hang1 --> <td width="3%">&#160;</td><!-- colindex=03 type=gutter --> <td width="1%" align="right">&#160;</td><!-- colindex=03 type=lead --> <td width="7%" align="right">&#160;</td><!-- colindex=03 type=body --> <td width="1%" align="left">&#160;</td><!-- colindex=03 type=hang1 --> <td width="3%">&#160;</td><!-- colindex=04 type=gutter --> <td width="1%" align="right">&#160;</td><!-- colindex=04 type=lead --> <td width="1%" align="right">&#160;</td><!-- colindex=04 type=body --> <td width="1%" align="left">&#160;</td><!-- colindex=04 type=hang1 --> </tr> <!-- Table Width Row END --> <!-- TableOutputHead --> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>Actuarial<br /> </b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>Prior service<br /> </b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> </tr> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>(gains)/losses</b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>cost</b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>Total</b> </td> <td> &#160; </td> </tr> <tr style="line-height: 3pt; 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</td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 74 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (2 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 72 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Amortization </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (3 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (2 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (5 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Foreign currency translation adjustment </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (9 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (9 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> <b>Other comprehensive income as at December&#160;31, 2008</b> </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>74</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>6</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>80</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Net amount generated/arising in current year </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 4 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 4 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Amortization </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (6 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (2 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (8 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Foreign currency translation adjustment </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 4 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 4 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Effect of curtailment/settlement </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (4 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (4 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> <b>Other comprehensive income as at December&#160;31, 2009</b> </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>72</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>4</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>76</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> </table> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> In 2010, we expect to amortize $4&#160;million of actuarial losses and $1&#160;million of past service cost. </div> <!-- XBRL Pagebreak Begin --> </div> <!-- END PAGE WIDTH --> <!-- PAGEBREAK --> <div style="margin-left: 0%"> <!-- BEGIN PAGE WIDTH --> <div style="margin-top: 0pt; font-size: 1pt"> </div> <div align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b> <font style="font-family: 'Times New Roman', Times"> </font> </b> </div> <!-- XBRL Pagebreak End --> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The components of the net periodic benefit cost included the following: </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <table border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff; text-align: left"> <!-- Table Width Row BEGIN --> <tr style="font-size: 1pt" valign="bottom"> <td width="28%">&#160;</td><!-- colindex=01 type=maindata --> <td width="2%">&#160;</td><!-- colindex=02 type=gutter --> <td width="1%" align="right">&#160;</td><!-- colindex=02 type=lead --> <td width="8%" align="right">&#160;</td><!-- colindex=02 type=body --> <td width="1%" align="left">&#160;</td><!-- colindex=02 type=hang1 --> <td width="2%">&#160;</td><!-- colindex=03 type=gutter --> <td width="1%" align="right">&#160;</td><!-- colindex=03 type=lead --> <td width="8%" align="right">&#160;</td><!-- colindex=03 type=body --> <td width="1%" align="left">&#160;</td><!-- colindex=03 type=hang1 --> <td width="2%">&#160;</td><!-- colindex=04 type=gutter --> <td width="1%" align="right">&#160;</td><!-- colindex=04 type=lead --> <td width="8%" align="right">&#160;</td><!-- colindex=04 type=body --> <td width="1%" align="left">&#160;</td><!-- colindex=04 type=hang1 --> <td width="2%">&#160;</td><!-- colindex=05 type=gutter --> <td width="1%" align="right">&#160;</td><!-- colindex=05 type=lead --> <td width="8%" align="right">&#160;</td><!-- colindex=05 type=body --> <td width="1%" align="left">&#160;</td><!-- colindex=05 type=hang1 --> <td width="2%">&#160;</td><!-- colindex=06 type=gutter --> <td width="1%" align="right">&#160;</td><!-- colindex=06 type=lead --> <td width="8%" align="right">&#160;</td><!-- colindex=06 type=body --> <td width="1%" align="left">&#160;</td><!-- colindex=06 type=hang1 --> <td width="2%">&#160;</td><!-- colindex=07 type=gutter --> <td width="1%" align="right">&#160;</td><!-- colindex=07 type=lead --> <td width="8%" align="right">&#160;</td><!-- colindex=07 type=body --> <td width="1%" align="left">&#160;</td><!-- colindex=07 type=hang1 --> </tr> <!-- Table Width Row END --> <!-- TableOutputHead --> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>Pension Benefits</b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>Other Long-term Benefits</b> </td> <td> &#160; </td> </tr> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>Year Ended<br /> </b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>Year Ended<br /> </b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>Year Ended<br /> </b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>Year Ended<br /> </b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>Year Ended<br /> </b> </td> <td> &#160; 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</td> </tr> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>2009</b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>2008</b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>2007</b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>2009</b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>2008</b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>2007</b> </td> <td> &#160; </td> </tr> <tr style="line-height: 3pt; font-size: 1pt"> <td>&#160; </td> </tr> <!-- TableOutputBody --> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Service cost </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>22</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 20 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 19 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>4</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 4 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 3 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Interest cost </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>25</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 32 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 28 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>2</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 3 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 2 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Expected return on plan assets </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(16</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (18 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (15 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>&#8212;</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Amortization of actuarial net loss (gain) </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>6</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 2 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (3 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(1</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 1 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (4 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Amortization of prior service cost </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>2</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 2 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 2 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>&#8212;</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 31 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Effect of settlement </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>2</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (3 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>&#8212;</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Effect of curtailment </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(2</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (1 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (1 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>&#8212;</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="font-size: 1pt"> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> <b>Net periodic benefit cost</b> </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>39</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 34 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 30 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>5</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 8 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 32 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="font-size: 1pt"> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 3px double #000000"> &#160; </td> <td style="border-top: 3px double #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 3px double #000000"> &#160; </td> <td style="border-top: 3px double #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 3px double #000000"> &#160; </td> <td style="border-top: 3px double #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 3px double #000000"> &#160; </td> <td style="border-top: 3px double #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 3px double #000000"> &#160; </td> <td style="border-top: 3px double #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 3px double #000000"> &#160; </td> <td style="border-top: 3px double #000000"> &#160; </td> <td> &#160; </td> </tr> </table> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The weighted average assumptions used in the determination of the benefit obligation and the plan asset for the pension plans and the other long term benefits were as follows: </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <table border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff; text-align: left"> <!-- Table Width Row BEGIN --> <tr style="font-size: 1pt" valign="bottom"> <td width="65%">&#160;</td><!-- colindex=01 type=maindata --> <td width="2%">&#160;</td><!-- colindex=02 type=gutter --> <td width="4%" align="right">&#160;</td><!-- colindex=02 type=lead --> <td width="1%" align="right">&#160;</td><!-- colindex=02 type=body --> <td width="4%" align="left">&#160;</td><!-- colindex=02 type=hang1 --> <td width="3%">&#160;</td><!-- colindex=03 type=gutter --> <td width="4%" align="right">&#160;</td><!-- colindex=03 type=lead --> <td width="1%" align="right">&#160;</td><!-- colindex=03 type=body --> <td width="4%" align="left">&#160;</td><!-- colindex=03 type=hang1 --> <td width="3%">&#160;</td><!-- colindex=04 type=gutter --> <td width="4%" align="right">&#160;</td><!-- colindex=04 type=lead --> <td width="1%" align="right">&#160;</td><!-- colindex=04 type=body --> <td width="4%" align="left">&#160;</td><!-- colindex=04 type=hang1 --> </tr> <!-- Table Width Row END --> <!-- TableOutputHead --> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom"> <b>December&#160;31,<br /> </b> </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom"> <b>December&#160;31,<br /> </b> </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom"> <b>December&#160;31,<br /> </b> </td> </tr> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px"> <b>Assumptions</b> </div> </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>2009</b> </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>2008</b> </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>2007</b> </td> </tr> <tr style="line-height: 3pt; 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</td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>3.08</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>%</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 3.46 </td> <td nowrap="nowrap" align="left" valign="bottom"> % </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 3.24 </td> <td nowrap="nowrap" align="left" valign="bottom"> % </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Expected long-term rate of return on funds for the pension expense of the year </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>5.28</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>%</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 5.69 </td> <td nowrap="nowrap" align="left" valign="bottom"> % </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 6.34 </td> <td nowrap="nowrap" align="left" valign="bottom"> % </td> </tr> </table> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The discount rate was determined by comparison against long-term corporate bond rates applicable to the respective country of each plan. In developing the expected long-term rate of return on assets, the Company modelled the expected long-term rates of return for broad categories of investments held by the plan against a number of various potential economic scenarios. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The Company&#8217;s pension plan asset allocation at December&#160;31, 2009 and 2008 are as follows: </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <table border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff; text-align: left"> <!-- Table Width Row BEGIN --> <tr style="font-size: 1pt" valign="bottom"> <td width="89%">&#160;</td><!-- colindex=01 type=maindata --> <td width="2%">&#160;</td><!-- colindex=02 type=gutter --> <td width="1%" align="right">&#160;</td><!-- colindex=02 type=lead --> <td width="1%" align="right">&#160;</td><!-- colindex=02 type=body --> <td width="1%" align="left">&#160;</td><!-- colindex=02 type=hang1 --> <td width="3%">&#160;</td><!-- colindex=03 type=gutter --> <td width="1%" align="right">&#160;</td><!-- colindex=03 type=lead --> <td width="1%" align="right">&#160;</td><!-- colindex=03 type=body --> <td width="1%" align="left">&#160;</td><!-- colindex=03 type=hang1 --> </tr> <!-- Table Width Row END --> <!-- TableOutputHead --> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="7" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>Percentage of Plan Assets at December</b> </td> </tr> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px"> <b>Asset Category</b> </div> </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>2009</b> </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>2008</b> </td> </tr> <tr style="line-height: 3pt; font-size: 1pt"> <td>&#160; </td> </tr> <!-- TableOutputBody --> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Equity securities </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>38</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>%</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 36 </td> <td nowrap="nowrap" align="left" valign="bottom"> % </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Bonds securities remunerating regular interest </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>33</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>%</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 37 </td> <td nowrap="nowrap" align="left" valign="bottom"> % </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; 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</td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom"> <b>Quoted Prices in<br /> </b> </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom"> <b>Significant<br /> </b> </td> </tr> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom"> <b>Active Markets<br /> </b> </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom"> <b>Significant Other<br /> </b> </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom"> <b>Unobservable<br /> </b> </td> </tr> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom"> <b>for Identical<br /> </b> </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom"> <b>Observable Inputs<br /> </b> </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom"> <b>Inputs<br /> </b> </td> </tr> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>Total</b> </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>Assets (Level 1)</b> </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>(Level 2)</b> </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>(Level 3)</b> </td> </tr> <tr style="line-height: 3pt; font-size: 1pt"> <td>&#160; </td> </tr> <!-- TableOutputBody --> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Cash and cash equivalents </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 27 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 27 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Equity securities </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 128 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 111 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 17 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Government debt securities </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 57 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 57 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Corporate debt securities </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 56 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 52 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 4 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Derivatives </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 22 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 16 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 6 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Investment funds </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 1 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 1 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Real estate </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 30 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 3 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 20 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 7 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Other (mainly insurance assets&#160;&#8212; contracts and reserves) </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 18 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 1 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 12 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 5 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; 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</div> <div align="left" style="margin-left: 6%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <i><font style="font-family: 'Times New Roman', Times">Numonyx</font></i> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> In 2007, the Company entered into an agreement with Intel Corporation and Francisco Partners L.P. to create a new independent semiconductor company from the key assets of the Company&#8217;s Flash Memory Group and Intel&#8217;s flash memory business (&#8220;FMG deconsolidation&#8221;). Under the terms of the agreement, the Company would sell its flash memory assets, including its NAND joint venture interest with Hynix as described below and other NOR resources, to the new company, which was called Numonyx Holdings B.V. (&#8220;Numonyx&#8221;), while Intel would sell its NOR assets and resources. In connection with this announcement, the Company reported in 2007 an impairment charge of $1,106&#160;million to adjust the value of these assets to fair value less costs to sell. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The Numonyx transaction closed on March&#160;30, 2008. At closing, through a series of steps, the Company contributed its flash memory assets and businesses as previously announced, for 109,254,191 common shares of Numonyx, representing a 48.6% equity ownership stake valued at $966&#160;million, and $156&#160;million in long-term subordinated notes, as described in Note&#160;12. As a consequence of the final terms and balance sheet at the closing date and additional agreements on assets to be contributed, coupled with changes in valuation for comparable Flash memory companies, the Company incurred an additional pre-tax loss of $190&#160;million for the year ended December&#160;31, 2008, which was reported on the line &#8220;Impairment, restructuring charges and other related closure costs&#8221; of the consolidated statement of income. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Upon creation, Numonyx entered into financing arrangements for a $450&#160;million term loan and a $100&#160;million committed revolving credit facility from two primary financial institutions. The loans have a four-year term. Intel and the Company have each granted in favor of Numonyx a 50% debt guarantee not joint and several. In the event of default, the banks will exercise the Company&#8217;s rights, subordinated to the repayment to senior lenders, to recover the amounts paid under the guarantee through the sale of the assets. The debt guarantee was evaluated under the FASB guidance on guarantee liabilities. It resulted in the recognition of a $69&#160;million liability, corresponding to the fair value of the guarantee at inception of the transaction. The same amount was also added to the value of the equity investment. The debt guarantee obligation was reported on the line &#8220;Other non-current liabilities&#8221; in the consolidated balance sheet as at December&#160;31, 2009 and 2008. As at December&#160;31, 2009, the guarantee was not exercised. 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For the year ended December&#160;31, 2009 the Company reported on the line &#8220;Earnings (loss) on equity investments&#8221; on the Company&#8217;s consolidated statement of income $171&#160;million of equity loss in Numonyx equity investment, that represents the Company&#8217;s proportional share of the loss reported by Numonyx in the fourth quarter of 2008 and the three first quarters of 2009, a benefit of $69&#160;million related to the amortization of basis differences arising principally from impairment charges recorded by the Company in prior periods. Furthermore, the Company evaluates on a quarterly basis the fair value of the investment in Numonyx based upon a combination of (i)&#160;an income approach, using net equity adjusted for net debt, and (ii)&#160;a market approach, using the metrics of comparable public companies, both in relation to actual results and the most updated available forecast. 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</div> <div align="left" style="margin-left: 6%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <i><font style="font-family: 'Times New Roman', Times">ST-Ericsson AT Holding</font></i> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> As disclosed in Note&#160;7, on February&#160;3, 2009, the Company announced the closing of a transaction to combine the businesses of Ericsson Mobile Platforms (&#8220;EMP&#8221;) and ST-NXP Wireless into a new venture, named <font style="white-space: nowrap">ST-Ericsson.</font> As part of the transaction, the Company received an interest in ST-Ericsson AT Holding AG (&#8220;JVD&#8221;). JVD, in which the Company owns 50% less a controlling share held by Ericsson, is the parent company of a group of entities that perform fundamental R&#038;D activities for the ST-Ericsson venture. The Company has determined that JVD is a variable interest entity, but has determined that the Company is not the primary beneficiary of the entity. Accordingly, the Company accounts for its noncontrolling interest in JVD under the equity method of accounting. The Company&#8217;s investment in JVD at the date of the transaction was valued at $99&#160;million. In 2009, the line &#8220;Loss on equity investments&#8221; in the Company&#8217;s consolidated statement of income included a charge of $32&#160;million related to JVD. This amount includes the amortization of basis differences. 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Under the agreement, Hynix Semiconductor Inc. contributed $500&#160;million for a 67% equity interest and the Company contributed $250&#160;million for a 33% equity interest. Additionally, the Company originally committed to grant $250&#160;million in long-term financing to the new joint venture guaranteed by the subordinated collateral of the joint venture&#8217;s assets. On March&#160;30, 2008, the investment in the joint venture, which amounted to $291&#160;million at the time, was transferred to Numonyx upon the formation of that entity. Due to regulatory and withholding tax issues the Company could not directly provide the joint venture with the $250&#160;million long-term financing as originally planned. As a result, in 2006, the Company entered into a ten-year term debt guarantee agreement with an external financial institution through which the Company guaranteed the repayment of the loan by the joint venture to the bank. The guarantee agreement includes the Company placing up to $250&#160;million in cash on a deposit account. The guarantee deposit will be used by the bank in case of repayment failure from the joint venture, with $250&#160;million as the maximum potential amount of future payments the Company, as the guarantor, could be required to make. In the event of default and failure to repay the loan from the joint venture, the bank will exercise the Company&#8217;s rights, subordinated to the repayment to senior lenders, to recover the amounts paid under the guarantee through the sale of the joint venture&#8217;s assets. The $250&#160;million, which has been on deposit since 2007, has been reported as &#8220;Restricted cash&#8221; on the consolidated balance sheet as at December 2009 and 2008. The debt guarantee resulted in the recognition of a $17&#160;million liability, corresponding to the fair value of the guarantee at inception of the transaction. The debt guarantee obligation continues to be reported on the line &#8220;Other non-current liabilities&#8221; in the consolidated balance sheet as at December&#160;31, 2009, since the terms of FMG deconsolidation did not include the transfer of the guarantee. As at December&#160;31, 2009, the guarantee was not exercised. To the best of management&#8217;s knowledge as at December&#160;31, 2009, the joint venture was current on their debt obligations, not in default of any debts covenants and did not expect to be in default on these obligations in the foreseeable future. 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It provides written principles for overall risk management, as well as written policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments, and investment of excess liquidity. The majority of cash and cash equivalent is held in U.S.&#160;dollars and Euro and is placed with financial institutions rated at least a single &#8220;A&#8221; long term rating from two of the major rating agencies, meaning at least A3 from Moody&#8217;s Investor Service and A- from Standard&#160;&#038; Poor&#8217;s and Fitch Ratings. Marginal amounts are held in other currencies. 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As a result, the Company is exposed to adverse movements in foreign currency exchange rates, primarily with respect to the Euro. Foreign exchange risk mainly arises from future commercial transactions and recognized assets and liabilities at the Company&#8217;s subsidiaries. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Management has set up a policy to require the Company&#8217;s subsidiaries to hedge their entire foreign exchange risk exposure with the Company through financial instruments transacted by Corporate Treasury. To manage their foreign exchange risk arising from foreign-currency-denominated assets and liabilities, entities in the Company use forward contracts and purchased currency options, transacted by Corporate Treasury. Foreign exchange risk arises when recognized assets and liabilities are denominated in a currency that is not the entity&#8217;s functional currency. These instruments do not qualify as hedging instruments. In addition, forward contracts and currency options are also used by the Company to reduce its exposure to U.S.&#160;dollar fluctuations in Euro-denominated forecasted intercompany transactions that cover a large part of its research and development, selling general and administrative expenses as well as a portion of its front-end manufacturing production costs of semi-finished goods. The derivative instruments used to hedge these forecasted transactions meet the criteria for designation as cash flow hedge. The hedged forecasted transactions are all highly probable of occurrence for hedge accounting purposes. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> It is the Company&#8217;s policy to keep the foreign exchange exposures in all the currency pairs hedged month by month against the monthly standard rate. Each month end, the forecasted flows for the coming month are hedged together with the fixing of the new standard rate. For this reason the hedging transactions will have an exchange rate very close to the standard rate at which the forecasted flows will be recorded on the following month. As such, the foreign exchange exposure of the Company, which consists in the balance sheet positions and other contractually agreed transactions, is always equivalent to zero and any movement of the foreign exchange rates will not therefore influence the exchange effect on consolidated statements of income items. Any discrepancy from the forecasted values and the actual results is constantly monitored and prompt actions are taken, as needed. </div> <div style="margin-top: 12pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <i><font style="font-family: 'Times New Roman', Times">Derivative Instruments Not Designated as a Hedge</font></i> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> As described above, the Company enters into foreign currency forward contracts and currency options to reduce its exposure to changes in exchange rates and the associated risk arising from the denomination of certain assets and liabilities in foreign currencies at the Company&#8217;s subsidiaries. These include receivables from international sales by various subsidiaries in foreign currencies, payables for foreign currency denominated purchases and certain other assets and liabilities arising in intercompany transactions. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The notional amount of these financial instruments totalled $717&#160;million, $505&#160;million and $254&#160;million at December&#160;31, 2009, 2008 and 2007, respectively. The principal currencies covered are the Euro, the Singapore dollar, the Japanese yen, the Swiss franc, the Swedish krona, the British pound and the Malaysian ringgit. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The risk of loss associated with forward contracts is equal to the exchange rate differential from the time the contract is entered into until the time it is settled. 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The maximum length of time over which the Company hedges its exposure to the variability of cash flows for forecasted transactions is 12&#160;months. </div> <!-- XBRL Pagebreak Begin --> </div> <!-- END PAGE WIDTH --> <!-- PAGEBREAK --> <div style="margin-left: 0%"> <!-- BEGIN PAGE WIDTH --> <div style="margin-top: 0pt; font-size: 1pt"> </div> <div align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b> <font style="font-family: 'Times New Roman', Times"> </font> </b> </div> <!-- XBRL Pagebreak End --> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> For the year ended December&#160;31, 2009 the Company recorded a reduction in cost of sales and operating expenses of $29&#160;million and $42&#160;million, respectively, related to the realized gain incurred on such hedged transactions. For the year ended December&#160;31, 2008 the Company recorded a reduction in cost of sales of $4&#160;million and an increase of operating expenses of $3&#160;million related to the realized gain (loss) incurred on such hedged transactions. For the year ended December&#160;31, 2007 the Company recorded a reduction in cost of sales and operating expenses of $16&#160;million and $20&#160;million, respectively, related to the realized gain incurred on such hedged transactions. 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The forecasted transactions hedged at December&#160;31, 2009 were determined to be probable of occurrence. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> As of December&#160;31, 2009, $6&#160;million of deferred gains on derivative instruments, net of tax of $1&#160;million, included in &#8220;Accumulated other comprehensive income/(loss)&#8221; were expected to be reclassified as earnings during the next twelve months based on the monthly forecasted research and development expenses, corporate costs and semi-finished manufacturing costs. No amount was reclassified as &#8220;Other income and expenses, net&#8221; into the consolidated statements of income from &#8220;Accumulated other comprehensive income/(loss)&#8221; in the consolidated statement of equity. As of December&#160;31, 2008, $13&#160;million of deferred gains on derivative instruments, net of tax of $2&#160;million, included in Accumulated other comprehensive income/(loss) have been reclassified as earnings during the next six months based on the monthly forecasted research and development expenses, corporate costs and semi-finished manufacturing costs. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Foreign currency forward contracts and currency options designated as cash flow hedges outstanding as of December&#160;31, 2009 have remaining terms of 8&#160;days to 11&#160;months, maturing on average after 119&#160;days. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> As at December&#160;31, 2009, the Company had the following outstanding derivative instruments that were entered into to hedge Euro-denominated forecasted transactions: </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <table border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff; text-align: left"> <!-- Table Width Row BEGIN --> <tr style="font-size: 1pt" valign="bottom"> <td width="55%">&#160;</td><!-- colindex=01 type=maindata --> <td width="2%">&#160;</td><!-- colindex=02 type=gutter --> <td width="10%" align="right">&#160;</td><!-- colindex=02 type=lead --> <td width="1%" align="right">&#160;</td><!-- colindex=02 type=body --> <td width="10%" align="left">&#160;</td><!-- colindex=02 type=hang1 --> <td width="3%">&#160;</td><!-- colindex=03 type=gutter --> <td width="9%" align="right">&#160;</td><!-- colindex=03 type=lead --> <td width="1%" align="right">&#160;</td><!-- colindex=03 type=body --> <td width="9%" align="left">&#160;</td><!-- colindex=03 type=hang1 --> </tr> <!-- Table Width Row END --> <!-- TableOutputHead --> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="left" valign="bottom"> &#160; 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</div> <div align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b><i><font style="font-family: 'Times New Roman', Times">Cash flow and fair value interest rate risk</font></i></b> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The Company&#8217;s interest rate risk arises from long-term borrowings. 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As of December&#160;31, 2007 the cancellable swaps met the criteria for designation as a fair value hedge and, as such, both the swaps and the hedged portion of the bonds were reflected at their fair values in the consolidated balance sheet. The criteria for designating a derivative as a hedge include evaluating whether the instrument is highly effective at offsetting changes in the fair value of the hedged item attributable to the hedged risk. Hedged effectiveness was assessed on both a prospective and retrospective basis at each reporting period. Any ineffectiveness of the hedge relationship was recorded as a gain or loss on derivatives as a component of &#8220;Other income and expenses, net&#8221; in the consolidated statements of income. The net gain (loss) recognized in &#8220;Other income and expenses, net&#8221; as a result of the ineffective portion of this fair value hedge amounted to $1&#160;million gain and $1&#160;million loss for the years ended December&#160;31, 2008 and 2007, respectively. </div> <!-- XBRL Pagebreak Begin --> </div> <!-- END PAGE WIDTH --> <!-- PAGEBREAK --> <div style="margin-left: 0%"> <!-- BEGIN PAGE WIDTH --> <div style="margin-top: 0pt; font-size: 1pt"> </div> <div align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b> <font style="font-family: 'Times New Roman', Times"> </font> </b> </div> <!-- XBRL Pagebreak End --> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> At December&#160;31, 2008 the cancellable swaps were not designated as fair value hedge and were reported as <font style="white-space: nowrap">held-for-trading</font> financial assets on the line &#8220;Other receivables and assets&#8221; of the consolidated balance sheet, as described in Note&#160;6. The Company determined that the swaps had been no longer effective at offsetting changes in the fair value of the hedged bonds since November&#160;1, 2008 and the fair value hedge relationship was consequently discontinued on that date. Unrealised gain recognized in earnings from discontinuance date totalled $15&#160;million and was reported on the line &#8220;Gain(loss) on financial assets&#8221; of the consolidated statements of income for the year ended December&#160;31, 2008. 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</td> </tr> <tr valign="bottom" style="font-size: 1pt"> <td> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Total derivatives designated as hedging instruments </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>33</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; 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</td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Foreign exchange forward contracts </div> </td> <td> &#160; </td> <td align="left" valign="bottom"> Other receivables and assets </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>3</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td align="left" valign="bottom"> Other receivables and assets </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 10 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; 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color: #000000; background: #ffffff"> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The effect on the consolidated statements of income for the year ended December&#160;31, 2009 and December&#160;31, 2008 of derivative instruments designated as fair value hedge is presented in the table below: </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <table border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff; text-align: left"> <!-- Table Width Row BEGIN --> <tr style="font-size: 1pt" valign="bottom"> <td width="28%">&#160;</td><!-- colindex=01 type=maindata --> <td width="2%">&#160;</td><!-- colindex=02 type=gutter --> <td width="46%">&#160;</td><!-- colindex=02 type=maindata --> <td width="3%">&#160;</td><!-- colindex=03 type=gutter --> <td width="5%" align="right">&#160;</td><!-- colindex=03 type=lead --> <td width="1%" align="right">&#160;</td><!-- colindex=03 type=body --> <td width="5%" align="left">&#160;</td><!-- colindex=03 type=hang1 --> <td width="3%">&#160;</td><!-- colindex=04 type=gutter --> <td width="3%" align="right">&#160;</td><!-- colindex=04 type=lead --> <td width="1%" align="right">&#160;</td><!-- colindex=04 type=body --> <td width="3%" align="left">&#160;</td><!-- colindex=04 type=hang1 --> </tr> <!-- Table Width Row END --> <!-- TableOutputHead --> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="7" nowrap="nowrap" align="center" valign="bottom"> <b>Amount of gain<br /> </b> </td> </tr> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="7" nowrap="nowrap" align="center" valign="bottom"> <b>(loss) recognized in<br /> </b> </td> </tr> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="center" valign="bottom"> <b>Location of gain (loss)<br /> </b> </td> <td> &#160; </td> <td colspan="7" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>earnings on derivative</b> </td> </tr> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="center" valign="bottom"> <b>recognized in earnings<br /> </b> </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom"> <b>December&#160;31,<br /> </b> </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom"> <b>December,<br /> </b> </td> </tr> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>on derivative</b> </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>2009</b> </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>2008</b> </td> </tr> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="9" nowrap="nowrap" align="center" valign="bottom"> <b>In millions of U.S. dollars</b> </td> </tr> <tr style="line-height: 3pt; font-size: 1pt"> <td>&#160; </td> </tr> <!-- TableOutputBody --> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Cancellable swaps </div> </td> <td> &#160; </td> <td align="left" valign="top"> Interest income, net </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>3</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="top"> &#160; </td> <td> &#160; 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color: #000000; background: #ffffff; text-align: left"> <!-- Table Width Row BEGIN --> <tr style="font-size: 1pt" valign="bottom"> <td width="29%">&#160;</td><!-- colindex=01 type=maindata --> <td width="2%">&#160;</td><!-- colindex=02 type=gutter --> <td width="4%" align="right">&#160;</td><!-- colindex=02 type=lead --> <td width="1%" align="right">&#160;</td><!-- colindex=02 type=body --> <td width="4%" align="left">&#160;</td><!-- colindex=02 type=hang1 --> <td width="3%">&#160;</td><!-- colindex=03 type=gutter --> <td width="4%" align="right">&#160;</td><!-- colindex=03 type=lead --> <td width="1%" align="right">&#160;</td><!-- colindex=03 type=body --> <td width="4%" align="left">&#160;</td><!-- colindex=03 type=hang1 --> <td width="3%">&#160;</td><!-- colindex=04 type=gutter --> <td width="21%">&#160;</td><!-- colindex=04 type=maindata --> <td width="3%">&#160;</td><!-- colindex=05 type=gutter --> <td width="4%" align="right">&#160;</td><!-- colindex=05 type=lead --> <td width="1%" align="right">&#160;</td><!-- colindex=05 type=body --> <td width="4%" align="left">&#160;</td><!-- colindex=05 type=hang1 --> <td width="3%">&#160;</td><!-- colindex=06 type=gutter --> <td width="4%" align="right">&#160;</td><!-- colindex=06 type=lead --> <td width="1%" align="right">&#160;</td><!-- colindex=06 type=body --> <td width="4%" align="left">&#160;</td><!-- colindex=06 type=hang1 --> </tr> <!-- Table Width Row END --> <!-- TableOutputHead --> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="7" nowrap="nowrap" align="center" valign="bottom"> <b>Gain (loss) deferred in<br /> </b> </td> <td> &#160; </td> <td nowrap="nowrap" align="center" valign="bottom"> <b>Location of gain<br /> </b> </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom"> &#160; </td> </tr> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="7" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>OCI on derivative</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="center" valign="bottom"> <b>(loss) reclassified<br /> </b> </td> <td> &#160; </td> <td colspan="7" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>Gain (loss) reclassified from OCI into earnings</b> </td> </tr> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="left" valign="bottom"> &#160; 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margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <i><font style="font-family: 'Times New Roman', Times">Credit risk</font></i> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The Company selects banks <font style="white-space: nowrap">and/or</font> financial institutions that operate with the group based on the criteria of long term rating from at least two major Rating Agencies and keeping a maximum outstanding amount per instrument with each bank group not to exceed 20% of the total. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Due to the credit market turmoil, the Company has decided to further tighten the counterparty concentration and credit risk profile. The maximum outstanding counterparty risk has been reduced and currently does not exceed 15% for major international banks with large market capitalization. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The Company monitors the creditworthiness of its customers to which it grants credit terms in the normal course of business. If certain customers are independently rated, these ratings are used. Otherwise, if there is no independent rating, risk control assesses the credit quality of the customer, taking into account its financial position, past experience and other factors. Individual risk limits are set based on internal and external ratings in accordance with limits set by management. The utilisation of credit limits is regularly monitored. Sales to customers are primarily settled in cash. At December&#160;31, 2009 and 2008, one customer, the Nokia Group of companies, represented 20.8% and 16.7% of trade accounts receivable, net respectively. Any remaining concentrations of credit risk with respect to trade receivables are limited due to the large number of customers and their dispersion across many geographic areas. </div> <div style="margin-top: 12pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <i><font style="font-family: 'Times New Roman', Times">Liquidity risk</font></i> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Prudent liquidity risk management includes maintaining sufficient cash and cash equivalents, short-term deposits and marketable securities, the availability of funding from committed credit facilities and the ability to close out market positions. The Company&#8217;s objective is to maintain a significant cash position and a low debt to equity ratio, which ensure adequate financial flexibility. Liquidity management policy is to finance the Company&#8217;s investments with net cash provided from operating activities. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Management monitors rolling forecasts of the Company&#8217;s liquidity reserve on the basis of expected cash flows. </div> <div style="margin-top: 12pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b><font style="font-family: 'Times New Roman', Times">25.2 Capital risk management</font></b> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The Company&#8217;s objectives when managing capital are to safeguard the Company&#8217;s ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital. 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</td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 7 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Derivative instruments designated as cash flow hedge </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>6</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 6 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Derivative instruments not designated as hedge </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(4</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (4 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> </table> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> </div> <!-- XBRL Pagebreak Begin --> </div> <!-- END PAGE WIDTH --> <!-- PAGEBREAK --> <div style="margin-left: 0%"> <!-- BEGIN PAGE WIDTH --> <div style="margin-top: 0pt; font-size: 1pt"> </div> <div align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b> <font style="font-family: 'Times New Roman', Times"> </font> </b> </div> <!-- XBRL Pagebreak End --> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> For assets measured at fair value on a recurring basis using significant unobservable inputs (Level&#160;3), the reconciliation between January&#160;1, 2009 and December&#160;31, 2009 is presented as follows: </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <table border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff; text-align: left"> <!-- Table Width Row BEGIN --> <tr style="font-size: 1pt" valign="bottom"> <td width="77%">&#160;</td><!-- colindex=01 type=maindata --> <td width="2%">&#160;</td><!-- colindex=02 type=gutter --> <td width="1%" align="right">&#160;</td><!-- colindex=02 type=lead --> <td width="19%" align="right">&#160;</td><!-- colindex=02 type=body --> <td width="1%" align="left">&#160;</td><!-- colindex=02 type=hang1 --> </tr> <!-- Table Width Row END --> <!-- TableOutputHead --> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>Fair Value<br /> </b> </td> <td> &#160; </td> </tr> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>Measurements Using<br /> </b> </td> <td> &#160; </td> </tr> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>Significant<br /> </b> </td> <td> &#160; </td> </tr> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>Unobservable Inputs<br /> </b> </td> <td> &#160; </td> </tr> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="center" valign="bottom"> &#160; 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</td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="11" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>Fair Value Measurements Using</b> </td> </tr> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom"> <b>Quoted Prices in<br /> </b> </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom"> &#160; </td> </tr> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom"> &#160; 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</td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> In millions of U.S. dollars </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Investments in equity securities carried at cost </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>29</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 29 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Numonyx equity investment </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>193</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 193 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Assets held for sale </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>31</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; 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</td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 31 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 222 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> </table> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> For assets (liabilities) measured at fair value on a non recurring basis using significant unobservable inputs (Level&#160;3), the reconciliation between January&#160;1, 2009 and December&#160;31, 2009 is presented as follows: </div> <div style="margin-top: 6pt; 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</td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>In millions of U.S. dollars</b> </td> <td> &#160; </td> </tr> <tr style="line-height: 3pt; font-size: 1pt"> <td>&#160; </td> </tr> <!-- TableOutputBody --> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> January&#160;1, 2009 </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 528 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Investments in equity securities carried at cost </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (3 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; 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Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the Company is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risk is are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. 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</td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 20pt"> Increase in parent company&#8217;s capital surplus for purchase of outstanding 20% of ST-NXP shares </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>119</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> <b>Change from net loss attributable to parent company and transfers (to) from noncontrolling interests</b> </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(1,012</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (786 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> </tr> </table> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> </div> <div style="margin-top: 12pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b><font style="font-family: 'Times New Roman', Times">Ericsson Mobile Platforms</font></b> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> On February&#160;3, 2009, the Company closed a transaction to combine the businesses of Ericsson Mobile Platforms (&#8220;EMP&#8221;) and ST-NXP Wireless into a new venture, ST-Ericsson. ST-Ericsson combines the resources of the two companies and focuses on developing and delivering a complete portfolio of mobile platforms wireless semiconductor solutions across the broad spectrum of mobile technologies. The operations of ST-Ericsson are conducted through two groups of companies. The parent of one of the groups is ST-Ericsson Holding AG (&#8220;JVS&#8221;), which is owned 50% plus a controlling share by ST. JVS is responsible for the full commercial operation of the combined businesses, namely sales, marketing, supply and the full product responsibility. The parent of the other group, ST-Ericsson AT Holding AG (&#8220;JVD&#8221;), is owned 50% plus a controlling share by Ericsson and is focused on fundamental R&#038;D activities. Both JVS and JVD are variable interest entities. The Company has determined that it is the primary beneficiary of JVS and therefore consolidates JVS, but that it is not the primary beneficiary of JVD and therefore accounts for its noncontrolling interest in JVD under the equity method of accounting. JVD is discussed further in Note&#160;11. In addition to the contributions by ST and Ericsson of their respective businesses to the venture entities, the consideration received from Ericsson included $1,155&#160;million in cash, of which $700&#160;million was paid directly to the Company. The transaction has been accounted for as a business combination under the amended business combination guidance adopted by the Company as of January&#160;1, 2009. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The purchase accounting results are the following, in millions of U.S.&#160;dollars: </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <table border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff; text-align: left"> <!-- Table Width Row BEGIN --> <tr style="font-size: 1pt" valign="bottom"> <td width="95%">&#160;</td><!-- colindex=01 type=maindata --> <td width="2%">&#160;</td><!-- colindex=02 type=gutter --> <td width="1%" align="right">&#160;</td><!-- colindex=02 type=lead --> <td width="1%" align="right">&#160;</td><!-- colindex=02 type=body --> <td width="1%" align="left">&#160;</td><!-- colindex=02 type=hang1 --> </tr> <!-- Table Width Row END --> <!-- TableOutputHead --> <!-- TableOutputBody --> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> <u>Consideration transferred:</u> </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Noncontrolling interest in the Company&#8217;s business contributed </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 1,105 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Cash received by the Company </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (700 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Equity investment in JVD </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (99 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> </tr> <tr valign="bottom" style="font-size: 1pt"> <td> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> <b>Total consideration transferred</b> </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>306</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> <b>Acquisition related costs included in SG&#038;A</b> </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>9</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> <u>Assets acquired and liabilities assumed:</u> </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Cash in JVS </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 445 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Other current assets and liabilities&#160;&#8212; net </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (47 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Customer relationships </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 48 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Property, plant and equipment </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 23 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> <b>Total identifiable net assets</b> </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>469</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Noncontrolling interest in EMP business acquired </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (306 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Goodwill </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 143 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> <b>Total</b> </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>306</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> </table> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The goodwill arises principally due to expected synergies and the value of the assembled workforce. It is tax deductible for an amount of $26&#160;million. In connection with this transaction, the Company recognized acquisition costs of $9&#160;million, which were included in selling, general and administrative expenses in 2009. The customer relationships have a useful life of four years. There are no contingent assets or liabilities recognized in the transaction. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The fair value of the noncontrolling interests was determined by the Company with the assistance of a third party evaluation of the fair values of the businesses contributed. Due to lack of comparable market transactions, the EMP business was valued using a discounted cash flow approach. The primary inputs used to measure the fair value were the stand alone business plan for the five-year period <font style="white-space: nowrap">2009-2013,</font> including certain cost synergies of the venture, and the weighted average cost of capital, which was determined to be 8.9%. This represents a Level&#160;3 measurement of fair value in the fair value measurement hierarchy. The resulting value of the EMP business was then allocated between the two entities of the venture as follows: (a)&#160;specifically identifiable assets as well as customer-related intangibles and the cost synergies were allocated to the portion of the EMP business contributed to JVS, and (b)&#160;specifically identifiable assets as well as the value of the usage rights of the technology were allocated to the portion of the EMP business contributed to JVD. The fair value of the Company&#8217;s contribution of its ST-NXP Wireless business to JVS was determined based upon the valuation of the EMP business contributed to JVS and JVD and the cash consideration that was agreed upon between the Company and Ericsson to compensate for the difference in fair values between the two companies&#8217; contributions. This valuation is therefore also considered Level&#160;3. Due to the significant minority rights of the Company and Ericsson in JVD and JVS respectively, no control premium or discount was assigned in the valuation of the noncontrolling interests. Upon closing, JVS was determined to be included in the reportable segment &#8220;Wireless&#8221;. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The unaudited proforma information below assumes that JVS was created on January&#160;1, 2009 and 2008 and incorporates the results of JVS beginning on those dates. The unaudited twelve months ended December&#160;31, 2009 and December&#160;31, 2008 information has been adjusted to incorporate the results of JVS on January&#160;1, 2009 and January&#160;1, 2008. Such results include estimated results of the business acquired, adjustments to conform to the Company&#8217;s accounting policies, additional depreciation and amortization resulting from the step up to the fair values of the tangible and intangible assets, consequential tax effects and noncontrolling interest adjustments. These amounts are presented for information purposes only and are not indicative of the results of operations that would have been achieved had the acquisition taken place as of January&#160;1, 2009 and January&#160;1, 2008. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <table border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff; text-align: left"> <!-- Table Width Row BEGIN --> <tr style="font-size: 1pt" valign="bottom"> <td width="75%">&#160;</td><!-- colindex=01 type=maindata --> <td width="2%">&#160;</td><!-- colindex=02 type=gutter --> <td width="1%" align="right">&#160;</td><!-- colindex=02 type=lead --> <td width="8%" align="right">&#160;</td><!-- colindex=02 type=body --> <td width="1%" align="left">&#160;</td><!-- colindex=02 type=hang1 --> <td width="3%">&#160;</td><!-- colindex=03 type=gutter --> <td width="1%" align="right">&#160;</td><!-- colindex=03 type=lead --> <td width="8%" align="right">&#160;</td><!-- colindex=03 type=body --> <td width="1%" align="left">&#160;</td><!-- colindex=03 type=hang1 --> </tr> <!-- Table Width Row END --> <!-- TableOutputHead --> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>Twelve Months Ended</b> </td> <td> &#160; </td> </tr> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>December&#160;31,<br /> </b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>December&#160;31,<br /> </b> </td> <td> &#160; </td> </tr> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px"> <b>Pro forma Statements of Income (unaudited)</b> </div> </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>2009</b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>2008</b> </td> <td> &#160; 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Accumulated impairment amounted to respectively $67&#160;million and $61&#160;million as at December&#160;31, 2009 and 2008. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> On February&#160;3, 2009, the Company closed a transaction to combine the businesses of Ericsson Mobile Platforms (&#8220;EMP&#8221;) and ST-NXP Wireless into a new venture, named ST-Ericsson. An amount of $143&#160;million of the purchase price for this transaction was allocated to goodwill. This business combination is discussed in details in Note&#160;7. Additionally, at the beginning of the third quarter of 2009, the Company made final adjustments to the NXP business combination and decreased goodwill by $12&#160;million. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> In 2008, the Company acquired 100% of Genesis Microchip Inc. and 80% of the NXP wireless business. Amounts of $15&#160;million and $669&#160;million, respectively, of the purchase price for these two transactions were allocated to goodwill. 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</td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (0.88 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (0.53 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> </tr> </table> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> At December&#160;31, 2009, if the Company had reported an income, outstanding stock options would have included anti-dilutive shares totalling approximately 37,943,832&#160;shares. 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These include, but are not limited to: Areva, France Telecom Orange, Finmeccanica, Cassa Depositi e Prestiti, Flextronics, Oracle and Thomson. The related party transactions presented in the table above also include transactions between the Company and its equity investments as listed in Note&#160;11. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Since the formation of ST-Ericsson, the Company purchases R&#038;D services from ST-Ericsson AT (&#8220;JVD&#8221;), a significant equity investment of the Company. 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These costs were reimbursed by Numonyx in 2008 following the closing of the transaction. Upon creation, Numonyx also entered into financing arrangements for a $450&#160;million term loan and a $100&#160;million committed revolving credit facility from two primary financial institutions. Intel and the Company have each granted in favor of Numonyx a 50% debt guarantee not joint and several. This debt guarantee is described in details in Note&#160;11. The final terms at the closing date of the agreements on assets to be contributed included rights granted to Numonyx by the Company to use certain assets retained by the Company. The Company recorded a provision amounting respectively to $65&#160;million and $87&#160;million, as at December&#160;31, 2009 and 2008, to reflect the value of such rights granted to its equity investment. The parties also retained the obligation to fund the severance payment (&#8220;trattamento di fine rapporto&#8221;) due to certain transferred employees which qualifies as a defined benefit plan and was classified on the line &#8220;Other non-current liabilities&#8221;. The liability amounted to respectively $31&#160;million and $35&#160;million as at December&#160;31, 2009 and 2008. Finally, the Company recorded in 2008 a net long-term receivable amounting to $6&#160;million corresponding to a tax credit Numonyx will pay back to the Company once cashed-in from the relevant taxing authorities. 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The amount of sales and other services made in 2007 was $2&#160;million. These transactions significantly decreased in 2008 upon the transfer of the joint venture to Numonyx, as described in Note&#160;11. The amount of purchases and other expenses and the amount of sales and other services from Hynix Semiconductor Inc. was $2&#160;million and $5&#160;million in 2008, respectively. 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Disclosure may include: the nature of the relationship(s), a description of the transactions, the amount of the transactions, the effects of any change in the method of establishing the terms of the transaction from the previous period, stated interest rate, expiration date, terms and manner of settlement per the agreement with the related party, and amounts due to or from related parties. If the entity and one or more other entities are under common ownership or management control and this control affects the operating results or financial position, disclosure includes the nature of the control relationship even if there are no transactions between the entities. Disclosure may also include the aggregate amount of current and deferred tax expense for each statement of earnings presented where the entity is a member of a group that files a consolidated tax return, the amount of an y tax related balances due to or from affiliates as of the date of each statement of financial position presented, the principal provisions of the method by which the consolidated amount of current and deferred tax expense is allocated to the members of the group and the nature and effect of any changes in that method. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates. 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</td> <td nowrap="nowrap" align="right" valign="bottom"> (1,232 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (54 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Income (loss) from foreign operations </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(1,120</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 409 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (440 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> </tr> <tr valign="bottom" style="font-size: 1pt"> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Loss before income tax expense </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(1,496</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (823 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (494 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> </tr> <tr valign="bottom" style="font-size: 1pt"> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 3px double #000000"> &#160; </td> <td style="border-top: 3px double #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 3px double #000000"> &#160; </td> <td style="border-top: 3px double #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 3px double #000000"> &#160; </td> <td style="border-top: 3px double #000000"> &#160; </td> <td> &#160; </td> </tr> </table> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> STMicroelectronics N.V. and its subsidiaries are individually liable for income taxes in their jurisdictions. Tax losses can only offset profits generated by the taxable entity incurring such loss. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Income tax benefit (expense) is comprised of the following: </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <table border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff; text-align: left"> <!-- Table Width Row BEGIN --> <tr style="font-size: 1pt" valign="bottom"> <td width="62%">&#160;</td><!-- colindex=01 type=maindata --> <td width="2%">&#160;</td><!-- colindex=02 type=gutter --> <td width="1%" align="right">&#160;</td><!-- colindex=02 type=lead --> <td width="8%" align="right">&#160;</td><!-- colindex=02 type=body --> <td width="1%" align="left">&#160;</td><!-- colindex=02 type=hang1 --> <td width="3%">&#160;</td><!-- colindex=03 type=gutter --> <td width="1%" align="right">&#160;</td><!-- colindex=03 type=lead --> <td width="8%" align="right">&#160;</td><!-- colindex=03 type=body --> <td width="1%" align="left">&#160;</td><!-- colindex=03 type=hang1 --> <td width="3%">&#160;</td><!-- colindex=04 type=gutter --> <td width="1%" align="right">&#160;</td><!-- colindex=04 type=lead --> <td width="8%" align="right">&#160;</td><!-- colindex=04 type=body --> <td width="1%" align="left">&#160;</td><!-- colindex=04 type=hang1 --> </tr> <!-- Table Width Row END --> <!-- TableOutputHead --> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>Year Ended<br /> </b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>Year Ended<br /> </b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>Year Ended<br /> </b> </td> <td> &#160; </td> </tr> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>December&#160;31,<br /> </b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>December&#160;31,<br /> </b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>December&#160;31,<br /> </b> </td> <td> &#160; </td> </tr> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>2009</b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>2008</b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>2007</b> </td> <td> &#160; </td> </tr> <tr style="line-height: 3pt; font-size: 1pt"> <td>&#160; </td> </tr> <!-- TableOutputBody --> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> The Netherlands taxes&#160;&#8212; current </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>4</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (1 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (4 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Foreign taxes&#160;&#8212; current </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(54</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (25 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (121 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> </tr> <tr valign="bottom" style="font-size: 1pt"> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Current taxes </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(50</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (26 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (125 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Foreign deferred taxes </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>145</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 69 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 148 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="font-size: 1pt"> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Income tax benefit </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>95</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 43 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 23 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="font-size: 1pt"> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 3px double #000000"> &#160; </td> <td style="border-top: 3px double #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 3px double #000000"> &#160; </td> <td style="border-top: 3px double #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 3px double #000000"> &#160; </td> <td style="border-top: 3px double #000000"> &#160; </td> <td> &#160; </td> </tr> </table> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The principal items comprising the differences in income taxes computed at the Netherlands statutory rate of 25.5% in 2009, 2008 and 2007, and the effective income tax rate are the following: </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <table border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff; text-align: left"> <!-- Table Width Row BEGIN --> <tr style="font-size: 1pt" valign="bottom"> <td width="62%">&#160;</td><!-- colindex=01 type=maindata --> <td width="2%">&#160;</td><!-- colindex=02 type=gutter --> <td width="1%" align="right">&#160;</td><!-- colindex=02 type=lead --> <td width="8%" align="right">&#160;</td><!-- colindex=02 type=body --> <td width="1%" align="left">&#160;</td><!-- colindex=02 type=hang1 --> <td width="3%">&#160;</td><!-- colindex=03 type=gutter --> <td width="1%" align="right">&#160;</td><!-- colindex=03 type=lead --> <td width="8%" align="right">&#160;</td><!-- colindex=03 type=body --> <td width="1%" align="left">&#160;</td><!-- colindex=03 type=hang1 --> <td width="3%">&#160;</td><!-- colindex=04 type=gutter --> <td width="1%" align="right">&#160;</td><!-- colindex=04 type=lead --> <td width="8%" align="right">&#160;</td><!-- colindex=04 type=body --> <td width="1%" align="left">&#160;</td><!-- colindex=04 type=hang1 --> </tr> <!-- Table Width Row END --> <!-- TableOutputHead --> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>Year Ended<br /> </b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>Year Ended<br /> </b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>Year Ended<br /> </b> </td> <td> &#160; </td> </tr> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>December&#160;31,<br /> </b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>December&#160;31,<br /> </b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>December&#160;31,<br /> </b> </td> <td> &#160; </td> </tr> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>2009</b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>2008</b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>2007</b> </td> <td> &#160; </td> </tr> <tr style="line-height: 3pt; font-size: 1pt"> <td>&#160; </td> </tr> <!-- TableOutputBody --> <tr valign="bottom"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Income tax benefit computed at statutory rate </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>382</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 210 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 126 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Non-deductible, non-taxable and other permanent differences, net </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(34</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (20 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> </tr> <tr valign="bottom"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Loss on equity investment </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(84</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (139 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Valuation allowance adjustments </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(56</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (18 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (1 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> </tr> <tr valign="bottom"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Impact of prior years adjustments </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>21</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 48 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (17 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> </tr> <tr valign="bottom"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Effects of change in enacted tax rate on deferred taxes </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(7</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (21 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> </tr> <tr valign="bottom"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Current year credits </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>76</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 66 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 63 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Other tax and credits </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(4</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 2 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (3 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> </tr> <tr valign="bottom"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Benefits from tax holidays </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>2</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 34 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 122 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Current year tax risk </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(23</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (31 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Impact of FMG deconsolidation </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (77 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (113 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> </tr> <tr valign="bottom"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Earnings of subsidiaries taxed at different rates </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(178</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (52 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (113 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> </tr> <tr valign="bottom" style="font-size: 1pt"> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Income tax benefit (expense) </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>95</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 43 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 23 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="font-size: 1pt"> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 3px double #000000"> &#160; </td> <td style="border-top: 3px double #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 3px double #000000"> &#160; </td> <td style="border-top: 3px double #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 3px double #000000"> &#160; </td> <td style="border-top: 3px double #000000"> &#160; </td> <td> &#160; </td> </tr> </table> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The lines &#8220;Impact of prior years&#8217; adjustments&#8221; and &#8220;Current year tax risk&#8221; include amounts that are further disclosed in the uncertain tax position reconciliation table included in this note. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> As detailed in Note&#160;2.6, following the passage of the French Finance Act for 2008, which included several changes to the research tax credit regime, beginning on January&#160;1, 2008, French research tax credits that in prior years were accounted for as a reduction in income tax expense were deemed to be grants in substance. These tax credits, totaling $146&#160;million and $161&#160;million, were reported as a reduction of research and development expenses in the statement of income for the years ended December&#160;31, 2009 and 2008, respectively. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> In 2009 and 2008, the line &#8220;Earnings of subsidiaries taxed at different rates&#8221; includes a decrease of $123&#160;million and $99&#160;million, respectively, related to significant losses in countries subject to tax holidays. In 2007, this line includes a $97&#160;million decrease related to the FMG deconsolidation for amounts that were deductible in tax jurisdictions with statutory tax rates substantially below the Netherlands statutory rate. In 2009, the Company received $121&#160;million for research tax credits for the period prior to January&#160;1, 2009 resulting in a decrease in deferred tax assets of the same amount. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The tax holidays represent a tax exemption period aimed to attract foreign technological investment in certain tax jurisdictions. The effect of the tax benefits on basic earnings per share was $0.00, $0.04, and $0.14 for the years ended December&#160;31, 2009, 2008, and 2007, respectively. These agreements are present in various countries and include programs that reduce up to and including 100% of taxes in years affected by the agreements. 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</td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom"> <b>December&#160;31,<br /> </b> </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom"> <b>December&#160;31,<br /> </b> </td> </tr> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>2009</b> </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>2008</b> </td> </tr> <tr style="line-height: 3pt; font-size: 1pt"> <td>&#160; </td> </tr> <!-- TableOutputBody --> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Tax loss carryforwards and investment credits </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>639</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 460 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Inventory valuation </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>34</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 29 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Impairment and restructuring charges </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>95</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 102 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Fixed asset depreciation in arrears </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>53</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 64 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Receivables for government funding </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>18</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 189 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Tax allowances granted on past capital investments </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>1,096</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 1,086 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Pension service costs </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>41</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 39 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Stock awards </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>11</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 26 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Commercial accruals </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>7</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 9 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Other temporary differences </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>62</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 45 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Total deferred tax assets </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>2,056</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 2,049 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; 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The &#8220;Tax allowances granted on past capital investments&#8221; mainly related to a 2003 agreement granting the Company certain tax credits for capital investments purchased through the year ending December&#160;31, 2006. Any unused tax credits granted under the agreement will continue to increase yearly by a legal inflationary index (currently 1.45% per annum). The credits may be utilized through 2020 or later depending on the Company meeting certain program criteria. In addition to this agreement, starting in 2007 the Company continues to receive tax credits on the yearly capital investments, which may be used to offset that year&#8217;s tax liabilities and increases by the legal inflationary rate. However, pursuant to the inability to utilize these credits currently and in future years, the Company did not recognize any deferred tax asset on such tax allowance. 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The recognition threshold in step one permits the benefit from an uncertain position to be recognized only if it is more likely than not, or 50&#160;percent assured that the tax position will be sustained upon examination by the taxing authorities. 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margin-left: 10pt"> <b>Balance at December&#160;31, 2008</b> </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> $ </td> <td nowrap="nowrap" align="right" valign="bottom"> 153 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Additions based on tax positions related to the current year </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 38 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Additions for tax positions of prior years </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 10 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; 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</td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Foreign currency translation </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 1 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="font-size: 1pt"> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> <b>Balance at December&#160;31, 2009</b> </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>$</b> </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>193</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; 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margin-left: 10pt"> <b>Balance at December&#160;31, 2007</b> </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> $ </td> <td nowrap="nowrap" align="right" valign="bottom"> 99 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Additions based on tax positions related to the current year </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 20 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Additions for tax positions of prior years </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 58 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; 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It is reasonably possible that certain of the uncertain tax positions disclosed in the table above could increase by up to $71&#160;million based upon tax examinations that are expected to be completed within the next 12&#160;months. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Additionally, the Company elected to classify accrued interest and penalties related to uncertain tax positions as components of income tax expense in its consolidated statements of income. 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These instruments do not qualify as hedging instruments as per U.S.&#160;GAAP guidance, and are marked-to-market at each period-end with the associated changes in fair value recognized in &#8220;Other income and expenses, net&#8221; in the consolidated statements of income, as described in Note&#160;2.4. </div> <div style="margin-top: 12pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 6%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <i><font style="font-family: 'Times New Roman', Times">Cash Flow Hedges</font></i> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> To further reduce its exposure to U.S.&#160;dollar exchange rate fluctuations, the Company also hedges certain Euro-denominated forecasted transactions that cover a large part of its projected research and development, selling, general and administrative expenses as well as a portion of its projected front-end manufacturing production costs of semi-finished goods. The foreign currency forward contracts and currency options used to hedge foreign currency exposures are reflected at their fair value in the consolidated balance sheet and meet the criteria for designation as cash flow hedge. The criteria for designating a derivative as a hedge include the instrument&#8217;s effectiveness in risk reduction and, in most cases, a one-to-one matching of the derivative instrument to its underlying transaction, which enables the Company to conclude, based on the fact that, at inception, the critical terms of the hedging instrument and the hedged forecasted transaction are the same, that changes in cash flows attributable to the risk being hedged are expected to be completely offset by the hedging derivative. Foreign currency forward contracts and currency options used as hedges are effective at reducing the Euro/U.S.&#160;dollar currency fluctuation risk and are designated as a hedge at the inception of the contract and on an on-going basis over the duration of the hedge relationship. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> For derivative instruments designated as cash flow hedge, the gain or loss from the effective portion of the hedge is reported as a component of &#8220;Accumulated other comprehensive income (loss)&#8221; in the consolidated statements of changes in equity and is reclassified into earnings in the same period in which the hedged transaction affects earnings, and within the same consolidated statements of income line item as the impact of the hedged transaction. For these derivatives, ineffectiveness appears if the hedge relationship is not perfectly effective or if the cumulative gain or loss on the derivative hedging instrument exceeds the cumulative change in the expected future cash flows on the hedged transactions. Effectiveness on transactions hedged through purchased currency options is measured on the full fair value of the option, including the time value of the option. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> When a forecasted transaction is no longer expected to occur, the cumulative gain or loss that was reported in &#8220;Accumulated other comprehensive income (loss)&#8221; in the consolidated statements of changes in equity is immediately transferred to the consolidated statements of income within &#8220;Other income and expenses, net&#8221;. If the de-designated derivative is still related to operating activities, the changes in fair value subsequent to the discontinuance continue to be reported within &#8220;Other income and expenses, net&#8221; in the consolidated statements of income, as described in Note&#160;2.4. If upon de-designation, the derivative instrument is held in view to be sold with no direct relation with current operating activities, changes in the fair value of the derivative instrument following de-designation are reported as a non-operating element on the line &#8220;Gain (loss) on financial assets&#8221; in the consolidated statements of income. When a designated hedging instrument is either terminated early or an improbable or ineffective portion of the hedge is identified, the gain or loss deferred in &#8220;Accumulated other comprehensive income (loss)&#8221; in the consolidated statements of changes in equity is recognized immediately in &#8220;Other income and expenses, net&#8221; in the consolidated statements of income when it is probable that the forecasted transaction will not occur by the end of the originally specified time period. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> In order to optimize its hedging strategy, the Company can be required to cease the designation of certain cash flow hedge transactions and enter into a new designated cash flow hedge transaction with the same hedged forecasted transaction but with a new hedging instrument. De-designation and re-designation are formally authorized and limited to the de-designation of purchased currency options with re-designation of the cash flow hedge through subsequent forward contract when the Euro/US dollar exchange rate is decreasing, the intrinsic value of the option is nil, the hedged transaction is still probable of occurrence and meets at re-designation date all criteria for hedge accounting. At de-designation date, the net derivative gain or loss related to the de-designated cash flow hedge deferred in &#8220;Accumulated other comprehensive income (loss)&#8221; in the consolidated statements of changes in equity continues to be reported in net equity. From de-designation date, the change in fair value of the de-designated hedging item is recognized each period in the consolidated statements of income on the line &#8220;Other income and expenses, net&#8221;, as described in Note&#160;2.4. The net derivative gain or loss related to the de-designated cash flow hedge deferred in net equity since de-designation date is reclassified to earnings in the same period in which the hedged transaction affects earnings, and within the same consolidated statements of income line item as the impact of the hedged transaction. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The principles regulating the hedging strategy for derivatives designated as cash flow hedge are established as follows: (i)&#160;for R&#038;D and Corporate costs between 50% and 80% of the total forecasted transactions; (ii)&#160;for manufacturing costs between 40% and 70% of the total forecasted transactions. The maximum length of time over which the Company hedges its exposure to the variability of cash flows for forecasted transactions is 14&#160;months. </div> <div style="margin-top: 12pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 6%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <i><font style="font-family: 'Times New Roman', Times">Fair Value Hedges</font></i> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> To the extent that cancellable swaps held as a hedge against the Company&#8217;s convertible bonds meet the criteria for designation as a fair value hedge, both the interest rate swaps and the hedged portion of the bonds are reflected at their fair values in the consolidated balance sheets. The criteria for designating a derivative as a hedge include evaluating whether the instrument is highly effective at offsetting changes in the fair value of the hedged item attributable to the hedged risk. Hedged effectiveness is assessed on both a prospective and retrospective basis at each reporting period. Any ineffectiveness of the hedge relationship is recorded as a gain or loss on derivatives as a component of &#8220;Other income and expenses, net&#8221;, in the consolidated statements of income. At the point that the cancellable swaps no longer meet the criteria for designation as a fair value hedge, the swaps will continue to be marked to fair value. At such point, the changes in the fair value of the swaps are recorded in &#8220;Gain (loss) on financial assets&#8221;. Also, the associated bonds will no longer be marked to fair value and the difference between fair value and amortized costs will be amortized to earnings as a component of interest expense. Results on the sale of the swaps are recognized in the line &#8220;Gain (loss) on financial assets&#8221; in the consolidated statements of income, as discussed in Note&#160;25. </div> <div style="margin-top: 12pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b><font style="font-family: 'Times New Roman', Times">2.6&#160;&#8212; Revenue Recognition</font></b> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Revenue is recognized as follows: </div> <div style="margin-top: 12pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 6%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <i><font style="font-family: 'Times New Roman', Times">Net sales</font></i> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Revenue from products sold to customers is recognized when all the following conditions have been met: (a)&#160;persuasive evidence of an arrangement exists; (b)&#160;delivery has occurred; (c)&#160;the selling price is fixed or determinable; and (d)&#160;collection is reasonably assured. This usually occurs at the time of shipment. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Consistent with standard business practice in the semiconductor industry, price protection is granted to distribution customers on their existing inventory of the Company&#8217;s products to compensate them for declines in market prices. The ultimate decision to authorize a distributor refund remains fully within the control of the Company. The Company accrues a provision for price protection based on a rolling historical price trend computed on a monthly basis as a percentage of gross distributor sales. This historical price trend represents differences in recent months between the invoiced price and the final price to the distributor, adjusted if required, to accommodate a significant move in the current market price. The short outstanding inventory time period, visibility into the standard inventory product pricing (as opposed to certain customized products) and long distributor pricing history have enabled the Company to reliably estimate price protection provisions at period-end. The Company records the accrued amounts as a deduction of revenue at the time of the sale. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The Company&#8217;s customers occasionally return the Company&#8217;s products for technical reasons. The Company&#8217;s standard terms and conditions of sale provide that if the Company determines that products are non-conforming, the Company will repair or replace the non-conforming products, or issue a credit or rebate of the purchase price. Quality returns are not related to any technological obsolescence issues and are identified shortly after sale in customer quality control testing. Quality returns are usually associated with end-user customers, not with distribution channels. The Company provides for such returns when they are considered as probable and can be reasonably estimated. The Company records the accrued amounts as a reduction of revenue. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The Company&#8217;s insurance policy relating to product liability only covers physical damage and other direct damages caused by defective products. The Company does not carry insurance against immaterial non consequential damages. The Company records a provision for warranty costs as a charge against cost of sales, based on historical trends of warranty costs incurred as a percentage of sales, which management has determined to be a reasonable estimate of the probable losses to be incurred for warranty claims in a period. Any potential warranty claims are subject to the Company&#8217;s determination that the Company is at fault for damages, and such claims usually must be submitted within a short period following the date of sale. This warranty is given in lieu of all other warranties, conditions or terms expressed or implied by statute or common law. The Company&#8217;s contractual terms and conditions limit its liability to the sales value of the products which gave rise to the claims. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> While the majority of the Company&#8217;s sales agreements contain standard terms and conditions, the Company may, from time to time, enter into agreements that contain multiple elements or non-standard terms and conditions, which require revenue recognition judgments. Where multiple elements exist in an arrangement, the arrangement is allocated to the different elements based upon verifiable objective evidence of the fair value of the elements for periods 2008 and prior, while allocation is based on verifiable objective evidence, third party evidence or management&#8217;s best estimate of selling price of the separable deliverables beginning in 2009. In 2009, the Company early adopted new US GAAP guidance for multiple deliverable arrangements. This new guidance removes the previous requirements of allocating revenue to delivered elements only to the extent that there was verifiable objective evidence of the fair value of all undelivered elements, and now requires the use of relative fair values based on either vendor specific objective evidence or third party evidence of fair values. If neither of these is available, the guidance requires the use of management&#8217;s best estimate of selling price for each separable deliverable. The early adoption of this new guidance was retroactively adopted back to January&#160;1, 2009; however, it did not have a material effect on the consolidated statements of income of the Company for the year ended December&#160;31, 2009. These arrangements generally do not include performance-, cancellation-, termination- or refund-type provisions. </div> <div style="margin-top: 12pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 6%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <i><font style="font-family: 'Times New Roman', Times">Other revenues</font></i> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Other revenues consist of license revenue, service revenue related to transferring licenses, patent royalty income, and sale of scrap and manufacturing by-products. </div> <div style="margin-top: 12pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 6%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <i><font style="font-family: 'Times New Roman', Times">Funding</font></i> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Funding received by the Company is mainly from governmental agencies and income is recorded as recognized when all contractually required conditions are fulfilled. The Company&#8217;s primary sources for government funding are French, Italian, other European Union (&#8220;EU&#8221;) governmental entities and Singapore agencies. Such funding is generally provided to encourage research and development activities, industrialization and local economic development. The EU has developed model contracts for research and development fundings that require beneficiaries to disclose the results to third parties on reasonable terms. The conditions for receipt of government funding may include eligibility restrictions, approval by EU authorities, annual budget appropriations, compliance with European Commission regulations, as well as specifications regarding objectives and results. Certain specific contracts contain obligations to maintain a minimum level of employment and investment during a certain period of time. There could be penalties if these objectives are not fulfilled. Other contracts contain penalties for late deliveries or for breach of contract, which may result in repayment obligations. In accordance with SAB&#160;104 and the Company&#8217;s revenue recognition policy, funding related to these contracts is recorded when the conditions required by the contracts are met. The Company&#8217;s funding programs are classified under three general categories: funding for research and development activities, capital investment, and loans. </div> <!-- XBRL Pagebreak Begin --> </div> <!-- END PAGE WIDTH --> <!-- PAGEBREAK --> <div style="margin-left: 0%"> <!-- BEGIN PAGE WIDTH --> <div style="margin-top: 0pt; font-size: 1pt"> </div> <div align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b> <font style="font-family: 'Times New Roman', Times"> </font> </b> </div> <!-- XBRL Pagebreak End --> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Funding for research and development activities is the most common form of funding that the Company receives. Public funding for research and development is recorded as &#8220;Other income and expenses, net&#8221; in the Company&#8217;s consolidated statements of income. Public funding for research and development is recognized ratably as the related costs are incurred once the agreement with the respective governmental agency has been signed and all applicable conditions are met. Furthermore, following the enactment of the French Finance Act for 2008, which included several changes to the research tax credit regime (&#8220;Cr&#233;dit Imp&#244;t Recherche&#8221;), French research tax credits that in prior years were recorded as a reduction of tax expense were deemed to be grants in substance. Unlike other research and development funding, the amounts to be received are determinable in advance and accruable as the funded research expenditures are made. They were thus reported, starting from January&#160;1, 2008, as a reduction of research and development expenses. The 2008 French research tax credits were classified as long term receivables in the consolidated balance sheet as at December&#160;31, 2008. The 2009 French research tax credits were classified as current receivables in the consolidated balance sheet as at December&#160;31, 2009. The research tax credits are to be reimbursed in cash by the French tax authorities within three years in case they are not deducted from income tax payable during this period of time. The Company considers such cash settlement features of the French research tax credits as long-term receivables. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Capital investment funding is recorded as a reduction of &#8220;Property, plant and equipment, net&#8221; and is recognized in the Company&#8217;s consolidated statements of income according to the depreciation charges of the funded assets during their useful lives. The Company also receives capital funding in Italy, which is recovered through the reduction of various governmental liabilities, including income taxes, value-added tax and employee-related social charges. The funding has been classified as long-term receivable and is reflected in the balance sheet at its discounted net present value. The subsequent accretion of the discount is recorded as non-operating income in &#8220;Interest income (expense), net&#8221;. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The Company receives certain loans, mainly related to large capital investment projects, at preferential interest rates. The Company records these loans as debt in its consolidated balance sheet. </div> <div style="margin-top: 12pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b><font style="font-family: 'Times New Roman', Times">2.7&#160;&#8212; Advertising costs</font></b> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Advertising costs are expensed as incurred and are recorded as selling, general and administrative expenses. Advertising expenses for 2009, 2008 and 2007 were $9&#160;million, $10&#160;million and $12&#160;million respectively. </div> <div style="margin-top: 12pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b><font style="font-family: 'Times New Roman', Times">2.8&#160;&#8212; Research and development</font></b> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Research and development expenses include costs incurred by the Company, the Company&#8217;s share of costs incurred by other research and development interest groups, and costs associated with co-development contracts. Research and development expenses do not include marketing design center costs, which are accounted for as selling expenses and process engineering, pre-production or process transfer costs which are recorded as cost of sales. Research and development costs are charged to expense as incurred. The amortization expense recognized on technologies and licenses purchased by the Company from third parties to facilitate the Company&#8217;s research is recorded as research and development expenses. Research and development expenses also include charges originated from purchase accounting, such as in-process research and development recognized on business combinations concluded before January&#160;1, 2009 and amortization of acquired intangible assets. Finally, starting January&#160;1, 2008 the research and development expenses are reported net of research tax credits received in the French jurisdiction, as described in Note&#160;2.6. </div> <div style="margin-top: 12pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b><font style="font-family: 'Times New Roman', Times">2.9&#160;&#8212; <font style="white-space: nowrap">Start-up</font> and phase-out costs</font></b> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> <font style="white-space: nowrap">Start-up</font> costs represent costs incurred in the <font style="white-space: nowrap">start-up</font> and testing of the Company&#8217;s new manufacturing facilities, before reaching the earlier of a minimum level of production or <font style="white-space: nowrap">6-months</font> after the fabrication line&#8217;s quality qualification. <font style="white-space: nowrap">Start-up</font> costs are included in &#8220;Other income and expenses, net&#8221; in the consolidated statements of income. Similarly, phase-out costs for facilities during the closing stage are also included in &#8220;Other income and expenses, net&#8221; in the consolidated statements of income. The costs of phase-outs are associated with the latest stages of facilities closure when the relevant production volumes become immaterial. </div> <div style="margin-top: 12pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b><font style="font-family: 'Times New Roman', Times">2.10&#160;&#8212; Income taxes</font></b> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The provision for current taxes represents the income taxes expected to be paid or the benefit expected to be received related to the current year income or loss in each individual tax jurisdiction. Deferred tax assets and liabilities are recorded for all temporary differences arising between the tax and book bases of assets and liabilities and for the benefits of tax credits and operating loss carry-forwards. Deferred income tax is determined using tax rates and laws that are enacted by the balance sheet date and are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled. The effect on deferred tax assets and liabilities from changes in tax law is recognized in the period of enactment. Deferred income tax assets are recognized in full, but the Company assesses whether it is probable that future taxable profit will be available against which temporary differences can be utilized. A valuation allowance is provided where necessary to reduce deferred tax assets to the amount for which management considers the possibility of recovery to be more likely than not. The Company utilizes the flow-through method to account for its investment credits, reflecting the credits as a reduction of tax expense in the year they are recognized. Similarly, research and development tax credits are classified as a reduction of tax expense in the year they are recognized. As described in Note&#160;2.6, French research tax credits are recorded as grants starting from January&#160;1, 2008 and reported as a reduction of research and development expenses. French research tax credits prior to January&#160;1, 2008 were recorded as a reduction of tax expense and were reported as deferred tax assets as at December&#160;31, 2008. No French research tax credits were reported as deferred tax assets as at December&#160;31, 2009. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Deferred taxes on the undistributed earnings of the Company&#8217;s foreign subsidiaries are provided for unless the Company intends to indefinitely reinvest the earnings in the subsidiaries. Additionally, a distribution of the related earnings would not have any material tax impact. Thus, the Company did not provide for deferred taxes on the earnings of those subsidiaries. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> A deferred tax is recognized on compensation for the grant of stock awards to the extent that such charge constitutes a temporary difference in the Company&#8217;s local tax jurisdictions. The measurement of the deferred tax asset is based on an estimate of the future tax deduction, for the amount of the compensation cost recognized for book purposes. Changes in the stock price do not thus impact the deferred tax asset or do not result in any adjustments prior to vesting. When the actual tax deduction is determined, generally upon vesting, it is compared to the estimated tax benefit as recognized over the vesting period. When a windfall tax benefit is determined (as the excess tax benefit of the actual tax deduction over the deferred tax asset) the excess tax benefit is recorded in equity on the line &#8220;Capital surplus&#8221; on the consolidated statements of changes in equity. In case of shortfall, only the actual tax benefit is to be recognized in the consolidated statements of income. The Company writes off the deferred tax asset at the level of the actual tax deduction by charging first capital surplus to the extent of the pool of windfall benefits from prior years and then earnings. When the settlement of an award results in a net operating loss (&#8220;NOL&#8221;) carryforward, or increase existing NOLs, the excess tax benefit and the corresponding credit to capital surplus is not recorded until the deduction reduces income tax payable. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> At each reporting date, the Company assesses all material open income tax positions in all tax jurisdictions to determine any uncertain tax positions. The Company uses a two-step process for the evaluation of uncertain tax positions. The recognition threshold in step one permits the benefit from an uncertain tax position to be recognized only if it is more likely than not, or 50&#160;percent assured, that the tax position will be sustained upon examination by the taxing authorities. The measurement methodology in step two is based on a &#8220;cumulative probability&#8221; approach, resulting in the recognition of the largest amount that is greater than 50&#160;percent likely of being realized upon settlement with the taxing authority. The Company classifies accrued interest and penalties related to uncertain tax positions as components of income tax expense in its consolidated statements of income. Uncertain tax positions, unrecognized tax benefits and related accrued interest and penalties are further described in Note&#160;21. </div> <div style="margin-top: 12pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b><font style="font-family: 'Times New Roman', Times">2.11&#160;&#8212; Earnings per share (&#8220;EPS&#8221;)</font></b> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Basic earnings per share are computed by dividing net income (loss) attributable to parent company shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share are computed using the treasury stock method by dividing net income (adding-back interest expense, net of tax effects, related to convertible debt if determined to be dilutive) by the weighted average number of common shares and common share equivalents outstanding during the period. The weighted average number of shares used to compute diluted earnings per share include the incremental shares of common stock relating to stock-options granted, nonvested shares and convertible debt to the extent such incremental shares are dilutive. Nonvested shares with performance or market conditions are included in the computation of diluted earnings per share if their conditions have been satisfied at the balance sheet date and if the awards are dilutive. If all necessary conditions have not been satisfied by the end of the period, the number of nonvested shares included in the computation of the diluted EPS shall be based on the number of shares, if any that would be issuable if the end of the reporting period were the end of the contingency period and if the result were dilutive. </div> <div style="margin-top: 12pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b><font style="font-family: 'Times New Roman', Times">2.12&#160;&#8212; Cash and cash equivalents</font></b> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Cash and cash equivalents represent cash on hand and deposits with external financial institutions with an original maturity of ninety days or less that are readily convertible in cash. Bank overdrafts are not netted against cash and cash equivalents and are shown as part of current liabilities on the consolidated balance sheets. </div> <div style="margin-top: 12pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b><font style="font-family: 'Times New Roman', Times">2.13&#8212;&#160;Restricted cash</font></b> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Restricted cash includes collateral deposits used as security under arrangements for financing of certain entities. </div> <div style="margin-top: 12pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b><font style="font-family: 'Times New Roman', Times">2.14&#160;&#8212; Trade accounts receivable</font></b> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Trade accounts receivable are recognized at their sales value, net of allowances for doubtful accounts. The Company maintains an allowance for doubtful accounts for potential estimated losses resulting from its customers&#8217; inability to make required payments. The Company bases its estimates on historical collection trends and records a provision accordingly. In addition, the Company is required to evaluate its customers&#8217; financial condition periodically and records an additional provision for any specific account the Company estimates as doubtful. The carrying amount of the receivable is thus reduced through the use of an allowance account, and the amount of the loss is recognized on the line &#8220;Selling, general and administrative&#8221; in the consolidated statements of income. When a trade accounts receivable is uncollectible, it is written-off against the allowance account for trade accounts receivables. Subsequent recoveries, if any, of amounts previously written-off are credited against &#8220;Selling, general and administrative&#8221; in the consolidated statements of income. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> In the events of sale of receivables and factoring, the Company derecognizes the receivables and accounts for them as a sale only to the extent that the Company has surrendered control over the receivables in exchange for a consideration other than beneficial interest in the transferred receivables. </div> <div style="margin-top: 12pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b><font style="font-family: 'Times New Roman', Times">2.15&#160;&#8212; Inventories</font></b> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Inventories are stated at the lower of cost or net realizable value. Cost is based on the weighted average cost by adjusting standard cost to approximate actual manufacturing costs on a quarterly basis; the cost is therefore dependent on the Company&#8217;s manufacturing performance. In the case of underutilization of manufacturing facilities, the costs associated with the excess capacity are not included in the valuation of inventories but charged directly to cost of sales. Net realizable value is the estimated selling price in the ordinary course of business, less applicable variable selling expenses and cost of completion. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The Company performs on a continuous basis inventory write-off of products, which have the characteristics of slow-moving, old production date and technical obsolescence. Additionally, the Company evaluates its product inventory to identify obsolete or slow-selling stock and records a specific provision if the Company estimates the inventory will eventually become obsolete. Provisions for obsolescence are estimated for excess uncommitted inventory based on the previous quarter sales, orders&#8217; backlog and production plans. </div> <div style="margin-top: 12pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b><font style="font-family: 'Times New Roman', Times">2.16&#160;&#8212; Goodwill</font></b> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Goodwill represents the excess of the cost of an acquisition over the fair value of the net identifiable assets of the acquired business at the date of acquisition. Goodwill is carried at cost less accumulated impairment losses. Goodwill is not amortized but is tested annually for impairment, or more frequently if indicators of impairment exist. Goodwill subject to potential impairment is tested at a reporting unit level, which represents a component of an operating segment for which discrete financial information is available and is subject to regular review by segment management. This impairment test determines whether the fair value of each reporting unit for which goodwill is allocated is lower than the total carrying amount of relevant net assets allocated to such reporting unit, including its allocated goodwill. If lower, the implied fair value of the reporting unit goodwill is then compared to the carrying value of the goodwill and an impairment charge is recognized for any excess. In determining the fair value of a reporting unit, the Company uses a market approach with financial metrics of comparable public companies and estimates the expected discounted future cash flows associated with the reporting unit. Significant management judgments and estimates are used in forecasting the future discounted cash flows, including: the applicable industry&#8217;s sales volume forecast and selling price evolution, the reporting unit&#8217;s market penetration and its revenues evolution, the market acceptance of certain new technologies and products, the relevant cost structure, the discount rates applied using a weighted average cost of capital and the perpetuity rates used in calculating cash flow terminal values. </div> <div style="margin-top: 12pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b><font style="font-family: 'Times New Roman', Times">2.17&#160;&#8212; Intangible assets</font></b> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Intangible assets subject to amortization include the intangible assets purchased from third parties recorded at cost and the intangible assets acquired in business combinations recorded at fair value, which include trademarks, technologies and licenses, contractual customer relationships and computer software. </div> <div style="margin-top: 12pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 6%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b><i><font style="font-family: 'Times New Roman', Times">Trademarks and technology licenses</font></i></b> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Separately acquired trademarks and licenses are recorded at historical cost. Trademarks and licenses acquired in a business combination are recognized at fair value at the acquisition date. Trademarks and licenses have a finite useful life and are carried at cost less accumulated amortization. Amortization is calculated using the straight-line method to allocate the cost of trademarks and licenses over the estimated useful lives. The estimate useful lives on licenses range from 3 to 7&#160;years while trademarks have a useful life ranging from 2 to 3&#160;years. </div> <div style="margin-top: 12pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 6%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b><i><font style="font-family: 'Times New Roman', Times">Contractual customer relationships</font></i></b> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Contractual customer relationships acquired in a business combination are recognized at fair value at the acquisition date. Contractual customer relationships have a finite useful life and are carried at cost less accumulated amortization. Amortization is calculated using the straight-line method over the expected life of the customer relationships, which ranges from 4 to 12&#160;years. </div> <div style="margin-top: 12pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 6%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b><i><font style="font-family: 'Times New Roman', Times">Computer software</font></i></b> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Separately acquired computer software is recorded at historical cost. Costs associated with maintaining computer software programmes are recognized as expenses as incurred. The capitalization of costs for internally generated software developed by the Company for its internal use begins when preliminary project stage is completed and when the Company, implicitly or explicitly, authorizes and commits to funding a computer software project. It must be probable that the project will be completed and will be used to perform the function intended. Computer software recognized as assets are amortised over their estimated useful lives, which does not exceed 4&#160;years. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Intangible assets subject to amortization are reflected net of any impairment losses. The carrying value of intangible assets subject to amortization is evaluated whenever changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized in the consolidated statements of income for the amount by which the asset&#8217;s carrying amount exceeds its fair value. The Company evaluates the remaining useful life of an intangible asset at each reporting period to determine whether events and circumstances warrant a revision to the remaining period of amortization. </div> <div style="margin-top: 12pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b><font style="font-family: 'Times New Roman', Times">2.18&#160;&#8212; Property, plant and equipment</font></b> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Property, plant and equipment are stated at historical cost, net of government funding and any impairment losses. Major additions and improvements are capitalized, minor replacements and repairs are charged to current operations. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Land is not depreciated. Depreciation on fixed assets is computed using the straight-line method over their estimated useful lives, as follows: </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <table border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff; text-align: left"> <!-- Table Width Row BEGIN --> <tr style="font-size: 1pt" valign="bottom"> <td width="87%">&#160;</td><!-- colindex=01 type=maindata --> <td width="2%">&#160;</td><!-- colindex=02 type=gutter --> <td width="5%" align="right">&#160;</td><!-- colindex=02 type=lead --> <td width="1%" align="right">&#160;</td><!-- colindex=02 type=body --> <td width="5%" align="left">&#160;</td><!-- colindex=02 type=hang1 --> </tr> <!-- Table Width Row END --> <!-- TableOutputHead --> <!-- TableOutputBody --> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Buildings </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 33 years </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Facilities&#160;&#038; leasehold improvements </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 5-10 years </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Machinery and equipment </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 3-10 years </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Computer and R&#038;D equipment </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 3-6 years </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Other </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 2-5 years </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> </table> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> </div> <!-- XBRL Pagebreak Begin --> </div> <!-- END PAGE WIDTH --> <!-- PAGEBREAK --> <div style="margin-left: 0%"> <!-- BEGIN PAGE WIDTH --> <div style="margin-top: 0pt; font-size: 1pt"> </div> <div align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b> <font style="font-family: 'Times New Roman', Times"> </font> </b> </div> <!-- XBRL Pagebreak End --> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> In 2008, the Company launched its first <font style="white-space: nowrap">300-mm</font> production facility. Consequently, the Company assessed the useful life of its <font style="white-space: nowrap">300-mm</font> manufacturing equipment, based on relevant economic and technical factors. The conclusion was that the appropriate depreciation period for such <font style="white-space: nowrap">300-mm</font> equipment was 10&#160;years. This policy was applied starting January&#160;1, 2008. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The Company evaluates each period whether there is reason to suspect that tangible assets or groups of assets might not be recoverable. Several impairment indicators exist for making this assessment, such as: significant changes in the technological, market, economic or legal environment in which the Company operates or in the market to which the asset is dedicated, or available evidence of obsolescence of the asset, or indication that its economic performance is, or will be, worse than expected. In determining the recoverability of assets to be held and used, the Company initially assesses whether the carrying value of the tangible assets or group of assets exceeds the undiscounted cash flows associated with these assets. If exceeded, the Company then evaluates whether an impairment charge is required by determining if the asset&#8217;s carrying value also exceeds its fair value. This fair value is normally estimated by the Company based on independent market appraisals or the sum of discounted future cash flows, using market assumptions such as the utilization of the Company&#8217;s fabrication facilities and the ability to upgrade such facilities, change in the selling price and the adoption of new technologies. The Company also evaluates, and adjusts if appropriate, the assets&#8217; useful lives, at each balance sheet date or when impairment indicators exist. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Assets are classified as assets held for sale when the following conditions have been met for the assets to be disposed of by sale: management has approved the plan to sell; assets are available for immediate sale; assets are actively being marketed; sale is probable within one year; price is reasonable in the market and it is unlikely that there will be significant changes in the assets to be sold or a withdrawal to the plan to sell. Assets classified as held for sale are reported as current assets at the lower of their carrying amount or fair value less selling costs and are not depreciated during the selling period. Costs to sell include incremental direct costs to transact the sale that would not have been incurred except for the decision to sell. When the held-for-sale accounting treatment requires an impairment charge for the difference between the carrying amount and the fair value, such impairment is reflected on the consolidated statements of income on the line &#8220;Impairment, restructuring charges and other related closure costs&#8221;. If the long-lived assets no longer meet the held-for-sale model, they are reported as assets held for use and thus reclassified from current assets to the line &#8220;Property, plant and equipment, net&#8221; in the consolidated balance sheet. The assets are measured at the lower of their fair value at the date of the subsequent decision not to sell and their carrying amount prior to their classification as assets held for sale, adjusted for any depreciation that would have been recognized if the long-lived assets had not been classified as assets held for sale. The fair value at the date of the decision not to sell is based on the discounted cash flows expected from the use of the assets. Any required adjustment to the carrying value of the asset that is reclassified as held and used is recorded in the income statement at the time of the reclassification and reported in the same income statement caption that was used to report adjustments to the carrying value of the asset during the time it was held for sale (line &#8220;Impairment, restructuring charges and other related closure costs&#8221;). When property, plant and equipment are retired or otherwise disposed of, the net book value of the assets is removed from the Company&#8217;s books and the net gain or loss is included in &#8220;Other income and expenses, net&#8221; in the consolidated statements of income. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Leasing arrangements in which a significant portion of the risks and rewards of ownership are retained by the Company are classified as capital leases. Capital leases are included in &#8220;Property, plant and equipment, net&#8221; and depreciated over the shorter of the estimated useful life or the lease term. Leasing arrangements classified as operating leases are arrangements in which the lessor retains a significant portion of the risks and rewards of ownership of the leased asset. Payments made under operating leases are charged to the consolidated statements of income on a straight-line basis over the period of the lease. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Borrowing costs incurred for the construction of any qualifying asset are capitalized during the period of time that is required to complete and prepare the asset for its intended use. Other borrowing costs are expensed. </div> <div style="margin-top: 12pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b><font style="font-family: 'Times New Roman', Times">2.19&#160;&#8212; Investments</font></b> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> For investments in public companies that have readily determinable fair values and for which the Company does not exercise significant influence, the Company classifies these investments as held-for-trading or available-for-sale as described in Note&#160;2.4. Investments in equity securities without readily determinable fair values and for which the Company does not have the ability to exercise significant influence are accounted for under the cost method. Under the cost method of accounting, investments are carried at historical cost and are adjusted only for declines in value. The value of a cost method investment is estimated on a non-recurring basis when there are identified events or changes in circumstances that may have a significant adverse effect on the fair value of the investment. Other-than-temporary impairment losses are immediately recorded in the consolidated statements of income and are based on the Company&#8217;s assessment of any significant and sustained reductions in the investment&#8217;s fair value. For unquoted equity securities, assumptions and estimates used in measuring fair value include the use of recent arm&#8217;s length transactions when they reflect the orderly exit price of the investments. Gains and losses on investments sold are determined on the specific identification method and are recorded as a non-operating element on the line &#8220;Gain (loss) on financial assets&#8221; in the consolidated statements of income. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Equity investments are all entities over which the Company has the ability to exercise significant influence but not control, generally representing a shareholding of between 20% and 50% of the voting rights. These investments are accounted for by the equity method of accounting and are initially recognized at cost. Equity investments also include entities which the Company determines to be variable interest entities, as described below, if the Company has the ability to exercise significant influence over the entity&#8217;s operations even if the Company owns less than 20% and is not the primary beneficiary. Equity investments are presented on the face of the consolidated balance sheet on the line &#8220;Equity investments&#8221;. The Company&#8217;s share in its equity investments&#8217; profit and loss is recognized in the consolidated statements of income as &#8220;Loss on equity investments&#8221; and in the consolidated balance sheets as an adjustment against the carrying amount of the investments. When the Company&#8217;s share of losses in an equity investment equals or exceeds its interest in the investee, including any unsecured receivable, the Company does not recognize further losses, unless it has incurred obligations or made payments on behalf of the investee. At each period-end, the Company assesses whether there is objective evidence that its interests in the equity investments are impaired. Once a determination is made that an other-then-temporary impairment exists, the Company writes down the carrying value of the equity investment to its fair value at the balance sheet date, which establishes a new cost basis. The fair value of an equity investment is measured on a non-recurring basis using a combination of an income approach, based on discounted cash flows, and a market approach with financial metrics of comparable public companies. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The Company assesses entities identified as a Variable Interest Entity (&#8220;VIE&#8221;) and consolidates the VIEs, if any, for which the Company is determined to be the primary beneficiary. The primary beneficiary of a VIE is the party that absorbs the majority of the entity&#8217;s expected losses, receives the majority of its expected residual returns, or both as a result of holding variable interests. Assets, liabilities, and the noncontrolling interest of newly consolidated VIEs are initially measured at fair value in the same manner as if the consolidation resulted from a business combination. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> For business combinations concluded before January&#160;1, 2009, the purchase method of accounting was used to account for a business combination if the acquired entity met the definition of a business. If the acquired entity was a development stage entity and had not commenced planned principal operations, it was presumed not to be a business, and the individual assets and liabilities were recognized at their relative fair values with no goodwill recognized in the consolidated balance sheet. In case of acquisition of a business, the cost of the acquisition was measured at the fair value of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the acquisition. If part of the consideration was contingent on a future event, the additional cost was not generally recognized until the contingency was resolved, the amount was determinable, or beyond a reasonable doubt. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination were measured initially at their fair values at the acquisition date. Any acquired in-process research and development (&#8220;IPR&#038;D&#8221;) was expensed immediately in the consolidated statements of income since it had no alternative future use. The excess of the cost of acquisition over the fair value of the identifiable net assets acquired was recorded as goodwill. If the cost of acquisition was lower than the fair value of the net assets of the entity acquired, the difference was used to reduce proportionately the fair value assigned and allocated on a pro-rata basis to all assets other than current and financial assets, assets to be sold, prepaid pension assets and deferred taxes. Any negative goodwill remaining was recognized as an extraordinary gain. Goodwill arising from a purchase of less than 100% of a business was valued as the difference between the purchase price paid by the Company and its proportionate share of the fair values of the identifiable net assets acquired, while the noncontrolling interest was reported based on the book value of net assets acquired. Consequently, there was no step up for the noncontrolling interests&#8217; share of the excess of the fair value of net assets over book value. When the Company acquired a business and a portion of the consideration was a noncontrolling interest in one or more of the Company&#8217;s businesses, the Company valued the net assets of the subsidiaries in which the interest was being given at fair value and recorded the difference between fair value and book value related to the interest on the line &#8220;Issuance of shares by subsidiary&#8221; in the consolidated statements of changes in equity. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The purchase accounting method applied to all business combinations concluded on or after January&#160;1, 2009, was on the basis of the amended purchase accounting guidance. The net of the acquisition-date amount of the identifiable asset acquired, equity instruments issued, and liabilities assumed is measured at fair value on the acquisition date. Any contingent purchase price, and contingent assets and liabilities are recorded at fair value on the acquisition date, regardless of the likelihood of payment and acquisition-related transaction costs are expensed as incurred. Restructuring costs relating to the acquired business are expensed as incurred. Acquired in-process research and development (&#8220;IPR&#038;D&#8221;) costs are no longer written off to earnings upon the acquisition; instead, IPR&#038;D is capitalized and recorded as an intangible asset on the acquisition date, subject to impairment testing until the research or development is completed or abandoned. The excess of the aggregate of the consideration transferred and the fair value of any noncontrolling interest in the acquiree over the net of the acquisition-date amount of the identifiable assets acquired and liabilities assumed is recorded as goodwill. In case of a bargain purchase, the Company reassesses whether it has correctly identified all of the assets acquired and all of the liabilities assumed; the noncontrolling interest in the acquiree, if any; the Company&#8217;s previously held equity interest in the acquiree, if any; and the consideration transferred. If after this review, a bargain purchase is still indicated, it is recognized in earnings attributed to the Company. The purchase of additional interests in a partially owned subsidiary is treated as an equity transaction as well as all transactions concerning the sale of subsidiary stock or the issuance of stock by the partially owned subsidiary as long as there is no change in control of the subsidiary. If as a consequence of selling subsidiary shares, the Company no longer controls the subsidiary, the Company recognizes a gain or loss in earnings. </div> <div style="margin-top: 12pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b><font style="font-family: 'Times New Roman', Times">2.20&#160;&#8212; Employee benefits</font></b> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff; text-align: left"> <tr> <td width="3%"></td> <td width="97%"></td> </tr> <tr valign="top"> <td> <b><i><font style="font-family: 'Times New Roman', Times">(a)&#160;</font></i></b> </td> <td> <b><i><font style="font-family: 'Times New Roman', Times">Pension obligations</font></i></b> </td> </tr> </table> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The Company sponsors various pension schemes for its employees. These schemes conform to local regulations and practices in the countries in which the Company operates. They are generally funded through payments to insurance companies, trustee-administered funds or state institutions, determined by periodic actuarial calculations. Such plans include both defined benefit and defined contribution plans. A defined benefit plan is a pension plan that defines the amount of pension benefit that an employee will receive on retirement, usually dependent on one or more factors such as age, years of service and compensation. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity for which the Company has no legal or constructive obligations to pay further contributions if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The liability recognized in the consolidated balance sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets. The overfunded or underfunded status of the defined benefit plans are calculated as the difference between plan assets and the projected benefit obligations. Overfunded plans are not netted against underfunded plans and are shown separately in the financial statements. Significant estimates are used in determining the assumptions incorporated in the calculation of the pension obligations, which is supported by input from independent actuaries. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to income over the employees&#8217; expected average remaining working lives. Past-service costs are recognized immediately in earnings, unless the changes to the pension scheme are conditional on the employees remaining in service for a specified period of time (the vesting period). In this case, the past-service costs are amortized on a straight-line basis over the vesting period. The net periodic benefit cost of the year is determined based on the assumptions used at the end of the previous year. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> For defined contribution plans, the Company pays contributions to publicly or privately administered pension insurance plans on a mandatory, contractual or voluntary basis. The Company has no further payment obligations once the contributions have been paid. The contributions are recognized as employee benefit expense when they are due. 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The entitlement to these benefits is usually conditional on the employee remaining in service up to retirement age and to the completion of a minimum service period. The expected costs of these benefits are accrued over the period of employment using an accounting methodology similar to that for defined benefit pension plans. Actuarial gains and losses arising from experience adjustments, and changes in actuarial assumptions, are charged or credited to income over the expected average remaining working lives of the related employees. 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For the accounting treatment and timing recognition of the involuntarily termination benefits, the Company distinguishes between one-time termination benefit arrangements and on-going termination benefit arrangements. A one-time termination benefit arrangement is one that is established by a termination plan that applies to a specified termination event or for a specified future period. These one-time involuntary termination benefits are recognized as a liability when the termination plan meets certain criteria and has been communicated to employees. If employees are required to render future service in order to receive these one-time termination benefits, the liability is recognized ratably over the future service period. Termination benefits other than one-time termination benefits are termination benefits for which criteria for communication are not met but that are committed to by management, or termination obligations that are not specifically determined in a new and single plan. These termination benefits are all legal, contractual and past practice termination obligations to be paid to employees in case of involuntary termination. 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The entitlement to these benefits is usually conditional on the employee completing a minimum service period. The expected costs of these benefits are accrued over the period of employment using an accounting methodology similar to that for defined benefit pension plans. Actuarial gains and losses arising from experience adjustments, and changes in actuarial assumptions, are charged or credited to earnings in the period of change. 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The shares are granted for free to employees and at their nominal value for the members of the Supervisory Board. The awards granted to employees contingently vest upon achieving certain market or performance conditions and upon completion of an average three-year service period. Shares granted to the Supervisory Board vest unconditionally along the same vesting period as employees and are not forfeited even if the service period is not completed. The Company measures the cost of share-based service awards based on the grant-date fair value of the award. That cost is recognized over the period during which an employee is required to provide service in exchange for the award or the requisite service period, usually the vesting period. Compensation is recognized only for the awards that ultimately vest. The compensation cost is recorded through earnings over the vesting period against equity, under &#8220;Capital surplus&#8221; in the consolidated statement of changes in equity. The compensation cost is calculated based on the number of awards expected to vest, which includes assumptions on the number of awards to be forfeited due to the employees&#8217; failing to provide the service condition, and forfeitures following the non-completion of one or more performance conditions. 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The Company retains control over the pledged debt securities and consequently does not de-recognize the financial assets from its consolidated balance sheet upon transfer of the collateral. The Company accounts for such transactions as secured borrowings and recognizes the cash received upon transfer by recording a liability for the obligation to return the cash to the lending financial institution within a term which does not exceed three months. Such obligation is extinguished when the Company repurchases the pledged securities in accordance with the terms of the repurchase agreements. </div> <div style="margin-top: 12pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b><font style="font-family: 'Times New Roman', Times">2.22&#160;&#8212; Share capital</font></b> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Ordinary shares are classified as equity. Incremental costs directly attributable to the issuance of new shares or options are shown in equity as a deduction, net of tax, from the proceeds. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Where the Company purchases its equity share capital (treasury shares), the consideration paid, including any directly attributable incremental costs (net of income taxes), is deducted from equity attributable to the Company&#8217;s shareholders until the shares are cancelled, reissued or disposed of. Where such shares are subsequently sold or reissued, any consideration received net of directly attributable incremental transaction costs and the related income tax effect is included in equity. </div> <div style="margin-top: 12pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b><font style="font-family: 'Times New Roman', Times">2.23&#160;&#8212; Comprehensive income (loss)</font></b> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Comprehensive income (loss) is defined as the change in equity of a business during a period except those changes resulting from investment by shareholders and distributions to shareholders. 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Provisions are not recognized for future operating losses. Where there are a number of similar obligations, the likelihood that an outflow will be required in settlements is determined by considering the class of obligations as a whole. A provision is recognized even if the likelihood of the outflow with respect to any one item included in the same class of obligations may be small. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The Company, when acting as a guarantor, recognizes, at the inception of a guarantee, a liability for the fair value of the obligation the Company assumes under the guarantee. When the guarantee is issued in conjunction with the formation of a partially owned business or a venture accounted for under the equity method, the recognition of the liability for the guarantee results in an increase to the carrying amount of the investment. 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For goodwill impairment testing and the use of fair value of tested reporting units, the Company reviewed its goodwill impairment model to measure fair value relying on external inputs and market participant&#8217;s assumptions rather than exclusively using discounted cash flows generated by each reporting entity. Such fair value measurement corresponds to a level&#160;3 fair value hierarchy in the amended guidance, as described in Note&#160;25. This new fair value measurement basis, when applied in a comparable market environment as in the last impairment campaign, had no significant impact on the results of the goodwill impairment tests as performed in 2009. However, as a result of the continuing downturn in market conditions and the general business environment, this new measurement of the fair value of the reporting units, when used in future goodwill and impairment testing, could generate impairment charges as the fair value will be estimated on business indicators that could reflect a distressed market. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> In December 2007, the FASB issued guidance related to business combinations and noncontrolling interests in consolidated financial statements. The guidance significantly changed how business acquisitions are accounted for and changed the accounting and reporting for minority interests, which are recharacterized as noncontrolling interests and classified as a component of equity. The significant changes from past practice are as follows: the new guidance expands the definitions of a business and business combination; it requires the recognition of contingent consideration at fair value on the acquisition date; acquisition-related transaction costs and restructuring costs are expensed as incurred; it changes the way certain assets are valued and requires retrospective application of measurement period adjustments. Additionally, for all business combinations (whether partial, full, or step acquisitions), the entity that acquires the business records 100% of all assets and liabilities of the acquired business, including goodwill, generally at their fair values. The significant changes from past practice related to noncontrolling interests include that they are now considered as equity and transactions between the parent company and the noncontrolling interests are treated as equity transactions as far as these transactions do not create a change in control. Additionally, the guidance requires the recognition of noncontrolling interests at fair value rather than at book value as in past practice in cases of partial acquisitions. Such guidance is effective for fiscal years beginning on or after December&#160;15, 2008 and was adopted by the Company on January&#160;1, 2009. The business combination guidance has been applied prospectively. The noncontrolling interest guidance required retroactive adoption of the presentation and disclosure requirements for existing noncontrolling interests. All other requirements of the noncontrolling interest guidance was applied prospectively. Acquisition-related costs, which amounted to $7&#160;million and were capitalized as at December&#160;31, 2008, were immediately recorded in earnings in the first quarter of 2009. Additionally, presentation and disclosures of noncontrolling interests generated a reclassification in all reporting periods as at January&#160;1, 2009 from the mezzanine line &#8220;Minority interests&#8221; in the previously filed consolidated balance sheet as at December&#160;31, 2008 to equity for a total amount of $276&#160;million. 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This amendment is effective for financial statements issued for fiscal years and interim periods beginning after November&#160;15, 2008, with early application permitted. The Company adopted the amendment in the first quarter of 2009 and included the new disclosure requirements in Note&#160;25. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> In November 2008, additional guidance was issued related to equity method investment accounting considerations. The guidance addresses a certain number of matters associated with the impact that the December 2007 amended guidance on business combinations and noncontrolling interests might have on the accounting for equity method investments. This additional guidance is effective for financial statements issued for fiscal years and interim periods within those fiscal years beginning on or after December&#160;15, 2008, with no early application permitted. This guidance must be applied prospectively to new investments acquired after the effective date and was adopted by the Company in the first quarter of 2009. There was no material effect on its financial position and results of operations as a result of adoption. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> In November 2008, additional guidance was issued on accounting for defensive intangible assets. This additional guidance applies to all defensive assets, either acquired from a third party or through a business combination. 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The clarifying guidance is effective for interim and annual periods ending after June&#160;15, 2009, with early adoption permitted in certain circumstances for periods ending after March&#160;15, 2009. The Company adopted the guidance in the second quarter of 2009 and included all required disclosures in its consolidated financial statements beginning in the period ended June&#160;27, 2009. This guidance did not have any impact on the Company&#8217;s financial position and results of operations. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> In April 2009, the FASB also issued clarifying guidance on the recognition and presentation of other-than-temporary impairments. This guidance amends the impairment guidance for certain debt securities and requires an investor to assess the likelihood of selling the security prior to recovering its cost basis. If an investor is able to meet the criteria to assert that it will not have to sell the security before recovery, impairment charges related to credit losses, or the inability to collect cash flows sufficient to amortized cost basis, would be recognized in earnings, while impairment charges related to non-credit losses would be reflected in other comprehensive income. The guidance, which is effective for interim and annual periods ending after June&#160;15, 2009, with early adoption permitted for periods ending after March&#160;15, 2009 required adoption through a cumulative effect adjustment. It also requires additional disclosures for both annual and interim periods on debt and equity securities. 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The guidance also includes a new required disclosure of the date through which an entity has evaluated subsequent events. The guidance is effective for interim and annual periods ending after June&#160;15, 2009 and was adopted by the Company in the second quarter of 2009 with no material impact on the consolidated financial statements. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> In June 2009, the U.S.&#160;Securities and Exchange Commission (SEC) issued Staff Accounting Bulletin&#160;No.&#160;112 (&#8220;SAB&#160;112&#8221;), which updates and amends the SEC staff&#8217;s previous interpretive guidance relating to business combinations and noncontrolling interests. 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When a default is probable, expense should be recognized with an offset to equity for the fair value of the shares less estimated recoveries. The guidance is effective for new share lending arrangements for interim and annual periods beginning on or after June&#160;15, 2009. For existing arrangements, the guidance is effective for fiscal years beginning on or after December&#160;15, 2009 and must be applied retrospectively for arrangements outstanding as of the effective date. 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The residual method of allocating arrangement consideration is no longer permitted. The new guidance also removes non-software components of tangible products and certain software components of tangible products from the scope of existing software revenue guidance. It finally requires expanded qualitative and quantitative disclosures. The new guidance is effective for fiscal years beginning on or after June&#160;15, 2010, with early adoption permitted as early as interim periods ended September&#160;30, 2009. The guidance may be applied either prospectively from the beginning of the fiscal year for new or materially modified arrangements or retrospectively. The Company has early adopted the guidance on a prospective basis, with effect as of January&#160;1, 2009. 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The amendment regarding accounting for transfers of financial assets includes: (i)&#160;eliminating the qualifying special-purpose entity (&#8220;QSPE&#8221;) concept; (ii)&#160;a new unit of account definition that must be met for transfers of portions of financial assets to be eligible for sale accounting; (iii)&#160;clarifications and changes to the derecognition criteria for a transfer to be accounted for as a sale; (iv)&#160;a change to the amount of recognized gain or loss on a transfer of financial assets accounted for as a sale when beneficial interests are received by the transferor, and (v)&#160;extensive new disclosures. The amendment regarding consolidation of variable interest entities includes: (i)&#160;the elimination of exemption for QSPEs; (ii)&#160;a new approach for determining who should consolidate a variable-interest entity and (iii)&#160;changes to when it is necessary to reassess who should consolidate a variable-interest entity. 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It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners, but excludes any and all transactions which are directly or indirectly attributable to that ownership interest in subsidiary equity which is not attributable to the parent. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 51 -Paragraph A5 -Appendix A Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 51 -Paragraph 30 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 51 -Paragraph 38 -Subparagraph c(3) Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 51 -Paragraph 8, 9, 10, 11, 12, 13, 14 true 17 3 us-gaap_DividendsCommonStockCash us-gaap true debit duration monetary No definition available. false false false false false false false false false false false verboselabel false 1 false false false false 0 0 true false false 2 false false false false 0 0 true false false 3 false false false false 0 0 true false false 4 false true false false -269000000 -269 true false false 5 false false false false 0 0 true false false 6 false true false false -6000000 -6 true false false 7 false true false false -275000000 -275 false false false Common stock cash dividend declared by an entity during the period. This element includes paid and unpaid dividends declared during the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 3 false 18 3 us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest us-gaap true credit instant monetary No definition available. false false false true false false false false false true false periodendlabel false 1 false true false false 1156000000 1156 true false false 2 false true false false 2097000000 2097 true false false 3 false true false false -274000000 -274 true false false 4 false true false false 5274000000 5274 true false false 5 false true false false 1320000000 1320 true false false 6 false true false false 53000000 53 true false false 7 false true false false 9626000000 9626 false false false Total of Stockholders' Equity (deficit) items, net of receivables from officers, directors owners, and affiliates of the entity including portions attributable to both the parent and noncontrolling interests (previously referred to as minority interest), if any. The entity including portions attributable to the parent and noncontrolling interests is sometimes referred to as the economic entity. This excludes temporary equity and is sometimes called permanent equity. 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Recorded using the cost method. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 12 -Paragraph 10 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 3 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 43 -Chapter 1 -Section B -Paragraph 7 -Subparagraph b false 9 3 us-gaap_AdjustmentsToAdditionalPaidInCapitalReallocationOfMinorityInterest us-gaap true credit duration monetary No definition available. false false false false false false false false false false false verboselabel false 1 false false false false 0 0 true false false 2 false true false false 152000000 152 true false false 3 false false false false 0 0 true false false 4 false false false false 0 0 true false false 5 false false false false 0 0 true false false 6 false true false false 246000000 246 true false false 7 false true false false 398000000 398 false false false Change in additional paid in capital as a result of a reallocation of a subsidiary's stockholders' equity to noncontrolling interest due to the subsidiary issuing stock. This reallocation is from a capital transaction. No authoritative reference available. false 12 3 us-gaap_AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue us-gaap true credit duration monetary No definition available. false false false false false false false false false false false verboselabel false 1 false false false false 0 0 true false false 2 false true false false 75000000 75 true false false 3 false true false false 105000000 105 true false false 4 false true false false -105000000 -105 true false false 5 false false false false 0 0 true false false 6 false false false false 0 0 true false false 7 false true false false 75000000 75 false false false This element represents the amount of recognized share-based compensation during the period, that is, the amount recognized as expense in the income statement (or as asset if compensation is capitalized). Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 123R -Paragraph 39 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 123R -Paragraph 64 -Subparagraph b Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 123R -Paragraph A91 false 13 3 us-gaap_ComprehensiveIncomeNetOfTaxAbstract us-gaap true na duration string No definition available. false false false false false true false false false false false verboselabel false 1 false false false false 0 0 true false false 2 false false false false 0 0 true false false 3 false false false false 0 0 true false false 4 false false false false 0 0 true false false 5 false false false false 0 0 true false false 6 false false false false 0 0 true false false 7 false false false false 0 0 false false false No definition available. false 14 4 us-gaap_ProfitLoss us-gaap true credit duration monetary No definition available. false false false false false false false false false false false terselabel false 1 false false false false 0 0 true false false 2 false false false false 0 0 true false false 3 false false false false 0 0 true false false 4 false true false false -786000000 -786 true false false 5 false false false false 0 0 true false false 6 false true false false 6000000 6 true false false 7 false true false false -780000000 -780 false false false The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 51 -Paragraph A1, A4, A5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 51 -Paragraph 5 -Subparagraph b Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 51 -Paragraph 29 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 51 -Paragraph 38 -Subparagraph a Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 51 -Paragraph 38 -Subparagraph c(1) false 15 4 us-gaap_OtherComprehensiveIncomeLossNetOfTaxPeriodIncreaseDecrease us-gaap true na duration monetary No definition available. false false false false false false false false false false false totallabel false 1 false false false false 0 0 true false false 2 false false false false 0 0 true false false 3 false false false false 0 0 true false false 4 false false false false 0 0 true false false 5 false true false false -226000000 -226 true false false 6 false true false false -19000000 -19 true false false 7 false true false false -245000000 -245 false false false This element represents Other Comprehensive Income (Loss), Net of Tax, for the period. Includes deferred gains (losses) on qualifying hedges, unrealized holding gains (losses) on available-for-sale securities, minimum pension liability, and cumulative translation adjustment. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 51 -Paragraph 38 -Subparagraph c(3) Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 22, 23, 24, 25 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 12 -Paragraph 10 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 31 -Article 5 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 3 true 16 4 us-gaap_ComprehensiveIncomeNetOfTax us-gaap true credit duration monetary No definition available. false false false false false false false false false false false totallabel false 1 false false false false 0 0 true false false 2 false false false false 0 0 true false false 3 false false false false 0 0 true false false 4 false false false false 0 0 true false false 5 false false false false 0 0 true false false 6 false false false false 0 0 true false false 7 false true false false -1025000000 -1025 false false false The change in equity [net assets] of a business enterprise during a period from transactions and other events and circumstances from non-owner sources which are attributable to the reporting entity. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners, but excludes any and all transactions which are directly or indirectly attributable to that ownership interest in subsidiary equity which is not attributable to the parent. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 51 -Paragraph A5 -Appendix A Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 51 -Paragraph 30 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 51 -Paragraph 38 -Subparagraph c(3) Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 51 -Paragraph 8, 9, 10, 11, 12, 13, 14 true 17 3 us-gaap_DividendsCommonStockCash us-gaap true debit duration monetary No definition available. false false false false false false false false false false false verboselabel false 1 false false false false 0 0 true false false 2 false false false false 0 0 true false false 3 false false false false 0 0 true false false 4 false true false false -319000000 -319 true false false 5 false false false false 0 0 true false false 6 false true false false -10000000 -10 true false false 7 false true false false -329000000 -329 false false false Common stock cash dividend declared by an entity during the period. This element includes paid and unpaid dividends declared during the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 3 false 18 3 us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest us-gaap true credit instant monetary No definition available. false false false true false false false false false true false periodendlabel false 1 false true false false 1156000000 1156 true false false 2 false true false false 2324000000 2324 true false false 3 false true false false -482000000 -482 true false false 4 false true false false 4064000000 4064 true false false 5 false true false false 1094000000 1094 true false false 6 false true false false 276000000 276 true false false 7 false true false false 8432000000 8432 false false false Total of Stockholders' Equity (deficit) items, net of receivables from officers, directors owners, and affiliates of the entity including portions attributable to both the parent and noncontrolling interests (previously referred to as minority interest), if any. The entity including portions attributable to the parent and noncontrolling interests is sometimes referred to as the economic entity. This excludes temporary equity and is sometimes called permanent equity. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 51 -Paragraph 25 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 51 -Paragraph 26 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 51 -Paragraph A3 -Appendix A false 10 3 us-gaap_MinorityInterestDecreaseFromRedemptions us-gaap true debit duration monetary No definition available. false false false false false false false false false false false verboselabel false 1 false false false false 0 0 true false false 2 false true false false 119000000 119 true false false 3 false false false false 0 0 true false false 4 false false false false 0 0 true false false 5 false false false false 0 0 true false false 6 false true false false -211000000 -211 true false false 7 false true false false -92000000 -92 false false false Decrease in noncontrolling interest as a result of redeeming or purchasing the interests of noncontrolling shareholders. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 51 -Paragraph 38 -Subparagraph c(2) false 11 3 us-gaap_MinorityInterestIncreaseFromStockIssuance us-gaap true credit duration monetary No definition available. false false false false false false false false false false false verboselabel false 1 false false false false 0 0 true false false 2 false false false false 0 0 true false false 3 false false false false 0 0 true false false 4 false false false false 0 0 true false false 5 false false false false 0 0 true false false 6 false true false false 1411000000 1411 true false false 7 false true false false 1411000000 1411 false false false Increase in noncontrolling interest balance from issuance of additional shares to noncontrolling interest holders or the sale of all or a portion of the parent's equity interest. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 51 -Paragraph 38 -Subparagraph c(2) false 12 3 us-gaap_AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue us-gaap true credit duration monetary No definition available. false false false false false false false false false false false verboselabel false 1 false false false false 0 0 true false false 2 false true false false 38000000 38 true false false 3 false true false false 105000000 105 true false false 4 false true false false -105000000 -105 true false false 5 false false false false 0 0 true false false 6 false false false false 0 0 true false false 7 false true false false 38000000 38 false false false This element represents the amount of recognized share-based compensation during the period, that is, the amount recognized as expense in the income statement (or as asset if compensation is capitalized). Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 123R -Paragraph 39 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 123R -Paragraph 64 -Subparagraph b Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 123R -Paragraph A91 false 13 3 us-gaap_ComprehensiveIncomeNetOfTaxAbstract us-gaap true na duration string No definition available. false false false false false true false false false false false verboselabel false 1 false false false false 0 0 true false false 2 false false false false 0 0 true false false 3 false false false false 0 0 true false false 4 false false false false 0 0 true false false 5 false false false false 0 0 true false false 6 false false false false 0 0 true false false 7 false false false false 0 0 false false false No definition available. false 14 4 us-gaap_ProfitLoss us-gaap true credit duration monetary No definition available. false false false false false false false false false false false terselabel false 1 false false false false 0 0 true false false 2 false false false false 0 0 true false false 3 false false false false 0 0 true false false 4 false true false false -1131000000 -1131 true false false 5 false false false false 0 0 true false false 6 false true false false -270000000 -270 true false false 7 false true false false -1401000000 -1401 false false false The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 51 -Paragraph A1, A4, A5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 51 -Paragraph 5 -Subparagraph b Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 51 -Paragraph 29 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 51 -Paragraph 38 -Subparagraph a Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 51 -Paragraph 38 -Subparagraph c(1) false 15 4 us-gaap_OtherComprehensiveIncomeLossNetOfTaxPeriodIncreaseDecrease us-gaap true na duration monetary No definition available. false false false false false false false false false false false totallabel false 1 false false false false 0 0 true false false 2 false false false false 0 0 true false false 3 false false false false 0 0 true false false 4 false false false false 0 0 true false false 5 false true false false 70000000 70 true false false 6 false true false false 15000000 15 true false false 7 false true false false 85000000 85 false false false This element represents Other Comprehensive Income (Loss), Net of Tax, for the period. Includes deferred gains (losses) on qualifying hedges, unrealized holding gains (losses) on available-for-sale securities, minimum pension liability, and cumulative translation adjustment. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 51 -Paragraph 38 -Subparagraph c(3) Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 22, 23, 24, 25 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 12 -Paragraph 10 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 31 -Article 5 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 3 true 16 4 us-gaap_ComprehensiveIncomeNetOfTax us-gaap true credit duration monetary No definition available. false false false false false false false false false false false totallabel false 1 false false false false 0 0 true false false 2 false false false false 0 0 true false false 3 false false false false 0 0 true false false 4 false false false false 0 0 true false false 5 false false false false 0 0 true false false 6 false false false false 0 0 true false false 7 false true false false -1316000000 -1316 false false false The change in equity [net assets] of a business enterprise during a period from transactions and other events and circumstances from non-owner sources which are attributable to the reporting entity. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners, but excludes any and all transactions which are directly or indirectly attributable to that ownership interest in subsidiary equity which is not attributable to the parent. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 51 -Paragraph A5 -Appendix A Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 51 -Paragraph 30 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 51 -Paragraph 38 -Subparagraph c(3) Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 51 -Paragraph 8, 9, 10, 11, 12, 13, 14 true 17 3 us-gaap_DividendsCommonStockCash us-gaap true debit duration monetary No definition available. false false false false false false false false false false false verboselabel false 1 false false false false 0 0 true false false 2 false false false false 0 0 true false false 3 false false false false 0 0 true false false 4 false true false false -105000000 -105 true false false 5 false false false false 0 0 true false false 6 false true false false -5000000 -5 true false false 7 false true false false -110000000 -110 false false false Common stock cash dividend declared by an entity during the period. This element includes paid and unpaid dividends declared during the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 3 false 18 3 us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest us-gaap true credit instant monetary No definition available. false false false true false false false false false true false periodendlabel false 1 true true false false 1156000000 1156 true false false 2 true true false false 2481000000 2481 true false false 3 true true false false -377000000 -377 true false false 4 true true false false 2723000000 2723 true false false 5 true true false false 1164000000 1164 true false false 6 true true false false 1216000000 1216 true false false 7 true true false false 8363000000 8363 false false false Total of Stockholders' Equity (deficit) items, net of receivables from officers, directors owners, and affiliates of the entity including portions attributable to both the parent and noncontrolling interests (previously referred to as minority interest), if any. The entity including portions attributable to the parent and noncontrolling interests is sometimes referred to as the economic entity. This excludes temporary equity and is sometimes called permanent equity. 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Operating activities include all transactions and events that are not defined as investing or financing activities. Operating activities generally involve producing and delivering goods and providing services. Cash flows from operating activities are generally the cash effects of transactions and other events that enter into the determination of net income. false 4 2 us-gaap_ProfitLoss us-gaap true credit duration monetary No definition available. false false false false false false false false false false false terselabel false 1 true true false false -1401000000 -1401 false false false 2 true true false false -780000000 -780 false false false 3 true true false false -471000000 -471 false false false The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 51 -Paragraph A1, A4, A5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 51 -Paragraph 5 -Subparagraph b Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 51 -Paragraph 29 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 51 -Paragraph 38 -Subparagraph a Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 51 -Paragraph 38 -Subparagraph c(1) false 5 2 us-gaap_AdjustmentsNoncashItemsToReconcileNetIncomeLossToCashProvidedByUsedInOperatingActivitiesAbstract us-gaap true na duration string No definition available. false false false false false true false false false false false verboselabel false 1 false false false false 0 0 false false false 2 false false false false 0 0 false false false 3 false false false false 0 0 false false false No definition available. false 6 3 us-gaap_DepreciationAndAmortization us-gaap true debit duration monetary No definition available. false false false false false false false false false false false verboselabel false 1 false true false false 1367000000 1367 false false false 2 false true false false 1366000000 1366 false false false 3 false true false false 1413000000 1413 false false false The current period expense charged against earnings on long-lived, physical assets not used in production, and which are not intended for resale, to allocate or recognize the cost of such assets over their useful lives; or to record the reduction in book value of an intangible asset over the benefit period of such asset; or to reflect consumption during the period of an asset that is not used in production. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 12 -Paragraph 5 false 7 3 us-gaap_AmortizationOfDebtDiscountPremium us-gaap true debit duration monetary No definition available. false false false false false false false false false false false verboselabel false 1 false true false false 13000000 13 false false false 2 false true false false 18000000 18 false false false 3 false true false false 18000000 18 false false false The component of interest income or expense representing the periodic increase in or charge against earnings to reflect amortization of debt discounts and premiums over the life of the related debt instruments, which are liabilities of the entity. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 21 -Paragraph 16 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 8 -Article 5 false 8 3 us-gaap_ImpairmentOfInvestments us-gaap true debit duration monetary No definition available. false false false false false false false false false false false verboselabel false 1 false true false false 140000000 140 false false false 2 false true false false 138000000 138 false false false 3 false true false false 46000000 46 false false false This element represents the amount by which the carrying amount exceeds the fair value of the investment. The amount is charged to income if the decline in fair value is deemed to be other than temporary. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 115 -Paragraph 16 false 9 3 us-gaap_UnrealizedGainLossOnDerivatives us-gaap true credit duration monetary No definition available. false false false false false false false false false false false verboselabel false 1 false false false false 0 0 false false false 2 false true false false -15000000 -15 false false false 3 false false false false 0 0 false false false The increases (decreases) in the market value of derivative instruments, including options, swaps, futures, and forward contracts, which were included in earnings in the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 false 10 3 us-gaap_GainLossOnSaleOfDerivatives us-gaap true credit duration monetary No definition available. false false false false false false false false false false false verboselabel false 1 false true false false 8000000 8 false false false 2 false false false false 0 0 false false false 3 false false false false 0 0 false false false The difference between the book value and the sale price of options, swaps, futures, forward contracts, and other derivative instruments. This element refers to the gain (loss) included in earnings . Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 false 11 3 us-gaap_GainsLossesOnExtinguishmentOfDebt us-gaap true credit duration monetary No definition available. false false false false false false false false false false true negated false 1 false true false false -3000000 -3 false false false 2 false false false false 0 0 false false false 3 false false false false 0 0 false false false Amount represents the difference between the fair value of the payments made and the carrying amount of the debt at the time of its extinguishment. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 26 -Paragraph 20, 21 false 12 3 us-gaap_AdjustmentsNoncashItemsToReconcileNetIncomeLossToCashProvidedByUsedInOperatingActivitiesOther us-gaap true debit duration monetary No definition available. false false false false false false false false false false false verboselabel false 1 false true false false -64000000 -64 false false false 2 false true false false 159000000 159 false false false 3 false true false false 109000000 109 false false false Transactions that do not result in cash inflows or outflows in the period in which they occur, but affect net income and thus are removed when calculating net cash flow from operating activities using the indirect cash flow method. This element is used when there is not a more specific and appropriate element. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 false 13 3 us-gaap_DeferredIncomeTaxExpenseBenefit us-gaap true debit duration monetary No definition available. false false false false false false false false false false false verboselabel false 1 false true false false -24000000 -24 false false false 2 false true false false -69000000 -69 false false false 3 false true false false -148000000 -148 false false false The component of income tax expense for the period representing the net change in the entity's deferred tax assets and liabilities pertaining to continuing operations. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 6 -Section I -Subsection 7 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 45 -Subparagraph b Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 289 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 false 14 3 us-gaap_IncomeLossFromEquityMethodInvestments us-gaap true credit duration monetary No definition available. false false false false false false false false false false true negated false 1 false true false false 337000000 337 false false false 2 false true false false 553000000 553 false false false 3 false true false false -14000000 -14 false false false This item represents the entity's proportionate share for the period of the net income (loss) of its investee (such as unconsolidated subsidiaries and joint ventures) to which the equity method of accounting is applied. Such amount typically reflects adjustments similar to those made in preparing consolidated statements, including adjustments to eliminate intercompany gains and losses, and to amortize, if appropriate, any difference between cost and underlying equity in net assets of the investee at the date of investment. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 18 -Paragraph 19 -Subparagraph c Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph 11 -Article 7 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 9 -Article 5 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 18 -Paragraph 6 -Subparagraph b false 15 3 us-gaap_RestructuringCostsAndAssetImpairmentCharges us-gaap true debit duration monetary No definition available. false false false false false false false false false false false verboselabel false 1 false true false false -4000000 -4 false false false 2 false true false false 371000000 371 false false false 3 false true false false 1173000000 1173 false false false Adjustment to remove noncash portion of restructuring costs and impairment charges. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 false 16 2 us-gaap_IncreaseDecreaseInOperatingCapitalAbstract us-gaap true na duration string No definition available. false false false false false true false false false false false verboselabel false 1 false false false false 0 0 false false false 2 false false false false 0 0 false false false 3 false false false false 0 0 false false false No definition available. false 17 3 us-gaap_IncreaseDecreaseInReceivables us-gaap true credit duration monetary No definition available. false false false false false false false false false false false verboselabel false 1 false true false false -300000000 -300 false false false 2 false true false false 565000000 565 false false false 3 false true false false 2000000 2 false false false The net change during the reporting period in the total amount due within one year (or one operating cycle) from all parties, associated with underlying transactions that are classified as operating activities. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 false 18 3 us-gaap_IncreaseDecreaseInInventories us-gaap true credit duration monetary No definition available. false false false false false false false false false false false verboselabel false 1 false true false false 553000000 553 false false false 2 false true false false -299000000 -299 false false false 3 false true false false 24000000 24 false false false The net change during the reporting period in the aggregate value of all inventory held by the reporting entity, associated with underlying transactions that are classified as operating activities. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 false 19 3 us-gaap_IncreaseDecreaseInAccountsPayableTrade us-gaap true debit duration monetary No definition available. false false false false false false false false false false false verboselabel false 1 false true false false -54000000 -54 false false false 2 false true false false -34000000 -34 false false false 3 false true false false 19000000 19 false false false Change in recurring obligations of a business that arise from the acquisition of merchandise, materials, supplies and services used in the production and sale of goods and services. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 false 20 3 us-gaap_IncreaseDecreaseInOtherOperatingCapitalNet us-gaap true credit duration monetary No definition available. false false false false false false false false false false false totallabel false 1 false true false false 248000000 248 false false false 2 false true false false -251000000 -251 false false false 3 false true false false 17000000 17 false false false For entities with classified balance sheets, the net change during the reporting period in the value of other assets or liabilities used in operating activities, that are not otherwise defined in the taxonomy. For entities with unclassified balance sheets, the net change during the reporting period in the value of all other assets or liabilities used in operating activities. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 true 21 2 us-gaap_NetCashProvidedByUsedInOperatingActivities us-gaap true na duration monetary No definition available. false false false false false false false false false false false totallabel false 1 false true false false 816000000 816 false false false 2 false true false false 1722000000 1722 false false false 3 false true false false 2188000000 2188 false false false The net cash from (used in) all of the entity's operating activities, including those of discontinued operations, of the reporting entity. Operating activities generally involve producing and delivering goods and providing services. Operating activity cash flows include transactions, adjustments, and changes in value that are not defined as investing or financing activities. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 26 true 22 1 us-gaap_NetCashProvidedByUsedInInvestingActivitiesAbstract us-gaap true na duration string No definition available. false false false false false true false false false false false verboselabel false 1 false false false false 0 0 false false false 2 false false false false 0 0 false false false 3 false false false false 0 0 false false false No definition available. false 23 2 us-gaap_PaymentsToAcquirePropertyPlantAndEquipment us-gaap true credit duration monetary No definition available. false false false false false false false false false false true negated false 1 false true false false -451000000 -451 false false false 2 false true false false -983000000 -983 false false false 3 false true false false -1140000000 -1140 false false false The cash outflow associated with the acquisition of long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale; includes cash outflows to pay for construction of self-constructed assets. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 15 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 17 -Subparagraph c false 24 2 us-gaap_PaymentsToAcquireAvailableForSaleSecurities us-gaap true credit duration monetary No definition available. false false false false false false false false false false true negated false 1 false true false false -1730000000 -1730 false false false 2 false false false false 0 0 false false false 3 false true false false -708000000 -708 false false false The cash outflow to acquire debt and equity securities not classified as either held-to-maturity securities or trading securities which would be classified as available-for-sale securities and reported at fair value, with unrealized gains and losses excluded from earnings and reported in a separate component of shareholders' equity. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 17 -Subparagraph b Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 115 -Paragraph 18 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 15 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 17 -Subparagraph a false 25 2 us-gaap_ProceedsFromSaleOfAvailableForSaleSecurities us-gaap true debit duration monetary No definition available. false false false false false false false false false false false verboselabel false 1 false true false false 1371000000 1371 false false false 2 false true false false 351000000 351 false false false 3 false true false false 101000000 101 false false false The cash inflow associated with the sale of debt and equity securities classified as available-for-sale securities. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 16 -Subparagraph a Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 115 -Paragraph 18 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 15 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 16 -Subparagraph b false 26 2 stm_ProceedsFromSaleOfNonCurrentMarketableSecurities stm false debit duration monetary Proceeds from sale of non current marketable securities. false false false false false false false false false false false verboselabel false 1 false true false false 75000000 75 false false false 2 false false false false 0 0 false false false 3 false false false false 0 0 false false false Proceeds from sale of non current marketable securities. No authoritative reference available. false 27 2 us-gaap_ProceedsFromSaleOfShortTermInvestments us-gaap true debit duration monetary No definition available. false false false false false false false false false false false verboselabel false 1 false false false false 0 0 false false false 2 false false false false 0 0 false false false 3 false true false false 250000000 250 false false false The cash inflow from securities or other assets sold, having ready marketability and intended by management to be liquidated, if necessary, within the current operating cycle. Includes cash flows from securities classified as trading securities that were acquired for reasons other than sale in the short-term. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 159 -Section Appendix C -Paragraph 5 -Subparagraph c Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 15, 16 false 28 2 us-gaap_IncreaseDecreaseInRestrictedCash us-gaap true credit duration monetary No definition available. false false false false false false false false false false true negated false 1 false false false false 0 0 false false false 2 false false false false 0 0 false false false 3 false true false false -32000000 -32 false false false The net cash inflow (outflow) for the net change associated with funds that are not available for withdrawal or use (such as funds held in escrow) and are associated with underlying transactions that are classified as investing activities. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 15, 16, 17 false 29 2 us-gaap_PaymentsForProceedsFromDerivatives us-gaap true credit duration monetary No definition available. false false false false false false false false false false true negated false 1 false true false false 26000000 26 false false false 2 false false false false 0 0 false false false 3 false false false false 0 0 false false false The net cash outflow (inflow) associated with derivative instruments, such as swaps, forwards, options, and so forth, excluding those designated as hedges. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 14 -Subparagraph FN4 false 30 2 stm_InvestmentInIntangibleAndFinancialAssets stm false credit duration monetary Investment in intangible and financial assets. false false false false false false false false false false true negated false 1 false true false false -138000000 -138 false false false 2 false true false false -91000000 -91 false false false 3 false true false false -208000000 -208 false false false Investment in intangible and financial assets. No authoritative reference available. false 31 2 us-gaap_ProceedsFromDivestitureOfBusinesses us-gaap true debit duration monetary No definition available. false false false false false false false false false false false verboselabel false 1 false true false false 1155000000 1155 false false false 2 false false false false 0 0 false false false 3 false false false false 0 0 false false false The cash inflow associated with the amount received from the sale of a portion of the company's business, for example a segment, division, branch or other business, during the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 15, 16 false 32 2 us-gaap_PaymentsToAcquireBusinessesNetOfCashAcquired us-gaap true credit duration monetary No definition available. false false false false false false false false false false true negatedtotal false 1 false true false false -18000000 -18 false false false 2 false true false false -1694000000 -1694 false false false 3 false false false false 0 0 false false false The cash outflow associated with the acquisition of a business, net of the cash acquired from the purchase. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 15, 17 true 33 2 us-gaap_NetCashProvidedByUsedInInvestingActivities us-gaap true debit duration monetary No definition available. false false false false false false false false false false false totallabel false 1 false true false false 290000000 290 false false false 2 false true false false -2417000000 -2417 false false false 3 false true false false -1737000000 -1737 false false false The net cash inflow (outflow) from investing activity. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 26 true 34 1 us-gaap_NetCashProvidedByUsedInFinancingActivitiesAbstract us-gaap true na duration string No definition available. false false false false false true false false false false false verboselabel false 1 false false false false 0 0 false false false 2 false false false false 0 0 false false false 3 false false false false 0 0 false false false No definition available. false 35 2 us-gaap_ProceedsFromIssuanceOfLongTermDebtAndCapitalSecuritiesNet us-gaap true debit duration monetary No definition available. false false false false false false false false false false false verboselabel false 1 false true false false 1000000 1 false false false 2 false true false false 663000000 663 false false false 3 false true false false 102000000 102 false false false The cash inflow associated with security instrument that either represents a creditor or an ownership relationship with the holder of the investment security with a maturity of beyond one year or normal operating cycle, if longer. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 18 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 19 -Subparagraph b Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 19 -Subparagraph a false 36 2 us-gaap_RepaymentsOfConvertibleDebt us-gaap true credit duration monetary No definition available. false false false false false false false false false false true negated false 1 false true false false -103000000 -103 false false false 2 false false false false 0 0 false false false 3 false false false false 0 0 false false false The cash outflow from the repayment of debt instrument which can be exchanged for a specified amount of another security, typically the entity's common stock, at the option of the issuer or the holder. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 18 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 20 -Subparagraph b false 37 2 us-gaap_RepaymentsOfLongTermDebtAndCapitalSecurities us-gaap true credit duration monetary No definition available. false false false false false false false false false false true negated false 1 false true false false -134000000 -134 false false false 2 false true false false -187000000 -187 false false false 3 false true false false -125000000 -125 false false false The cash outflow associated with security instrument that either represents a creditor or an ownership relationship with the holder of the investment security with a maturity of beyond one year or normal operating cycle, if longer. The nature of such security interests included herein may consist of debt securities, long-term capital lease obligations, and capital securities. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 18 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 20 -Subparagraph b false 38 2 us-gaap_ProceedsFromRepaymentsOfShortTermDebt us-gaap true debit duration monetary No definition available. false false false false false false false false false false false verboselabel false 1 false true false false -20000000 -20 false false false 2 false true false false 20000000 20 false false false 3 false false false false 0 0 false false false The net cash inflow (outflow) for borrowing having initial term of repayment within one year or the normal operating cycle, if longer. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 18 false 39 2 us-gaap_ProceedsFromIssuanceOfCommonStock us-gaap true debit duration monetary No definition available. false false false false false false false false false false false verboselabel false 1 false false false false 0 0 false false false 2 false false false false 0 0 false false false 3 false true false false 2000000 2 false false false The cash inflow from the additional capital contribution to the entity. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 18 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 19 -Subparagraph a false 40 2 us-gaap_PaymentsForRepurchaseOfCommonStock us-gaap true credit duration monetary No definition available. false false false false false false false false false false true negated false 1 false false false false 0 0 false false false 2 false true false false -313000000 -313 false false false 3 false false false false 0 0 false false false The cash outflow to reacquire common stock during the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 18 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 20 -Subparagraph a false 41 2 us-gaap_PaymentsOfDividendsCommonStock us-gaap true credit duration monetary No definition available. false false false false false false false false false false true negated false 1 false true false false -158000000 -158 false false false 2 false true false false -240000000 -240 false false false 3 false true false false -269000000 -269 false false false The cash outflow from the distribution of an entity's earnings in the form of dividends to common shareholders. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 18 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 20 -Subparagraph a false 42 2 us-gaap_PaymentsOfDividendsMinorityInterest us-gaap true credit duration monetary No definition available. false false false false false false false false false false true negated false 1 false true false false -5000000 -5 false false false 2 false true false false -10000000 -10 false false false 3 false true false false -6000000 -6 false false false The cash outflow for the return on capital for noncontrolled interest in the entity. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 18 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 20 -Subparagraph a false 43 2 us-gaap_PaymentsToMinorityShareholders us-gaap true credit duration monetary No definition available. false false false false false false false false false false true negated false 1 false true false false -92000000 -92 false false false 2 false false false false 0 0 false false false 3 false false false false 0 0 false false false The cash outflow to return capital to noncontrolled interest, which generally occurs when noncontrolling shareholders reduce their ownership stake (in a subsidiary of the entity). This element does not include dividends paid to noncontrolling shareholders. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 18 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 20 -Subparagraph a false 44 2 us-gaap_ProceedsFromPaymentsForOtherFinancingActivities us-gaap true debit duration monetary No definition available. false false false false false false false false false false false totallabel false 1 false true false false -2000000 -2 false false false 2 false false false false 0 0 false false false 3 false false false false 0 0 false false false The net cash inflow (outflow) from other financing activities. This element is used when there is not a more specific and appropriate element in the taxonomy. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 18, 19, 20 true 45 2 us-gaap_NetCashProvidedByUsedInFinancingActivities us-gaap true debit duration monetary No definition available. false false false false false false false false false false false totallabel false 1 false true false false -513000000 -513 false false false 2 false true false false -67000000 -67 false false false 3 false true false false -296000000 -296 false false false The net cash inflow (outflow) from financing activity for the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 26 true 46 1 us-gaap_EffectOfExchangeRateOnCashAndCashEquivalents us-gaap true debit duration monetary No definition available. false false false false false false false false false false false totallabel false 1 false true false false -14000000 -14 false false false 2 false true false false -84000000 -84 false false false 3 false true false false 41000000 41 false false false The effect of exchange rate changes on cash balances held in foreign currencies. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 25 true 47 1 us-gaap_CashAndCashEquivalentsPeriodIncreaseDecrease us-gaap true na duration monetary No definition available. false false false false false false false false false false false totallabel false 1 false true false false 579000000 579 false false false 2 false true false false -846000000 -846 false false false 3 false true false false 196000000 196 false false false The net change between the beginning and ending balance of cash and cash equivalents. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 26 true 48 1 us-gaap_CashAndCashEquivalentsAtCarryingValue us-gaap true debit instant monetary No definition available. false false false false false false false false true false false periodstartlabel false 1 false true false false 1009000000 1009 false false false 2 false true false false 1855000000 1855 false false false 3 false true false false 1659000000 1659 false false false Includes currency on hand as well as demand deposits with banks or financial institutions. It also includes other kinds of accounts that have the general characteristics of demand deposits in that the Entity may deposit additional funds at any time and also effectively may withdraw funds at any time without prior notice or penalty. Cash equivalents, excluding items classified as marketable securities, include short-term, highly liquid investments that are both readily convertible to known amounts of cash, and so near their maturity that they present minimal risk of changes in value because of changes in interest rates. Generally, only investments with original maturities of three months or less qualify under that definition. Original maturity means original maturity to the entity holding the investment. For example, both a three-month US Treasury bill and a three-year Treasury note purchased three months from maturity qualify as cash equivalents. However, a Treasury note purchased th ree years ago does not become a cash equivalent when its remaining maturity is three months. Compensating balance arrangements that do not legally restrict the withdrawal or usage of cash amounts may be reported as Cash and Cash Equivalents, while legally restricted deposits held as compensating balances against borrowing arrangements, contracts entered into with others, or company statements of intention with regard to particular deposits should not be reported as cash and cash equivalents. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 7, 26 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 8, 9 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 7 -Footnote 1 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 1 -Article 5 false 49 1 us-gaap_CashAndCashEquivalentsAtCarryingValue us-gaap true debit instant monetary No definition available. false false false false false false false false false true false periodendlabel false 1 false true false false 1588000000 1588 false false false 2 false true false false 1009000000 1009 false false false 3 false true false false 1855000000 1855 false false false Includes currency on hand as well as demand deposits with banks or financial institutions. It also includes other kinds of accounts that have the general characteristics of demand deposits in that the Entity may deposit additional funds at any time and also effectively may withdraw funds at any time without prior notice or penalty. Cash equivalents, excluding items classified as marketable securities, include short-term, highly liquid investments that are both readily convertible to known amounts of cash, and so near their maturity that they present minimal risk of changes in value because of changes in interest rates. Generally, only investments with original maturities of three months or less qualify under that definition. Original maturity means original maturity to the entity holding the investment. For example, both a three-month US Treasury bill and a three-year Treasury note purchased three months from maturity qualify as cash equivalents. However, a Treasury note purchased th ree years ago does not become a cash equivalent when its remaining maturity is three months. Compensating balance arrangements that do not legally restrict the withdrawal or usage of cash amounts may be reported as Cash and Cash Equivalents, while legally restricted deposits held as compensating balances against borrowing arrangements, contracts entered into with others, or company statements of intention with regard to particular deposits should not be reported as cash and cash equivalents. 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As at December&#160;31, 2009 the number of shares of common stock issued was 910,319,305&#160;shares (910,307,305 at December&#160;31, 2008). </div> <!-- XBRL Pagebreak Begin --> </div> <!-- END PAGE WIDTH --> <!-- PAGEBREAK --> <div style="margin-left: 0%"> <!-- BEGIN PAGE WIDTH --> <div style="margin-top: 0pt; font-size: 1pt"> </div> <div align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b> <font style="font-family: 'Times New Roman', Times"> </font> </b> </div> <!-- XBRL Pagebreak End --> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> As of December&#160;31, 2009 the number of shares of common stock outstanding was 878,333,566 (874,276,833 at December&#160;31, 2008). </div> <div style="margin-top: 12pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b><font style="font-family: 'Times New Roman', Times">16.2&#160;&#8212; Preference shares</font></b> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The 540,000,000 preference shares, when issued, will entitle a holder to full voting rights and to a preferential right to dividends and distributions upon liquidation. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> On January&#160;22, 2008, a new option agreement was concluded between the Company and Stichting Continu&#239;teit ST. This new option agreement provides for the issuance of 540,000,000 preference shares. Any such shares should be issued by the Company to the Foundation, upon its request and in its sole discretion, upon payment of at least 25% of the par value of the preference shares to be issued. The issuing of the preference shares is conditional upon (i)&#160;the Company receiving an unsolicited offer or there being the threat of such an offer; (ii)&#160;the Company&#8217;s Managing and Supervisory Boards deciding not to support such an offer and; (iii)&#160;the Board of the Foundation determining that such an offer or acquisition would be contrary to the interests of the Company and its stakeholders. The preference shares may remain outstanding for no longer than two years. There were no preference shares issued as of December&#160;31, 2009. </div> <div style="margin-top: 12pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b><font style="font-family: 'Times New Roman', Times">16.3&#160;&#8212; Treasury stock</font></b> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Following the authorization by the Supervisory Board, announced on April&#160;2, 2008, to repurchase up to 30&#160;million shares of its common stock, the Company acquired 29,520,220&#160;shares as at December&#160;31, 2008, for a total amount of approximately $313&#160;million, also reflected at cost as a reduction of the shareholders&#8217; equity. This repurchase intends to cover the transfer of shares to employees upon vesting of future share based remuneration programs. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The treasury shares have been designated for allocation under the Company&#8217;s share based remuneration programs of non-vested shares including such plans as approved by the 2005, 2006, 2007, 2008 and 2009 Annual General Meeting of Shareholders. As of December&#160;31, 2009, 10,934,481 of these treasury shares were transferred to employees under the Company&#8217;s share based remuneration programs of which 4,044,733 in the year ended December&#160;31, 2009, following the full vesting of the 2006 stock-award plan, the vesting of the first and second tranches of the 2007 stock-award plan, the vesting of the first tranche of the 2008 stock-award plan together with the acceleration of the vesting of a limited number of stock-awards. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> As of December&#160;31, 2009, the Company owned a number of treasury shares equivalent to 31,985,739. </div> <div style="margin-top: 12pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b><font style="font-family: 'Times New Roman', Times">16.4&#160;&#8212; Stock option plans</font></b> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> In 1995, the Shareholders voted to adopt the 1995 Employee Stock Option Plan (the &#8220;1995 Plan&#8221;) whereby options for up to 33,000,000&#160;shares may be granted in installments over a five-year period. Under the 1995 Plan, the options may be granted to purchase shares of common stock at a price not lower than the market price of the shares on the date of grant. At December&#160;31, 2008, under the 1995 plan, 42,300 of the granted options originally vested 32% after two years, 32% after three years and 36% after four years following the date of the grant. The options expire 10&#160;years after the date of grant. During 2005, the vesting periods for all options under the plan were accelerated with no impact on the consolidated statements of income. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> In 1996, the Shareholders voted to adopt the Supervisory Board Option Plan whereby each member of the Supervisory Board was eligible to receive, during the three-year period <font style="white-space: nowrap">1996-1998,</font> 18,000 options for 1996 and 9,000 options for both 1997 and 1998, to purchase shares of common stock at the closing market price of the shares on the date of the grant. In the same three-year period, the professional advisors to the Supervisory Board were eligible to receive 9,000 options for 1996 and 4,500 options for both 1997 and 1998. Under the Plan, the options vest over one year and are exercisable for a period expiring eight years from the date of grant. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> In 1999, the Shareholders voted to renew the Supervisory Board Option Plan whereby each member of the Supervisory Board may receive, during the three-year period <font style="white-space: nowrap">1999-2001,</font> 18,000 options for 1999 and 9,000 options for both 2000 and 2001, to purchase shares of capital stock at the closing market price of the shares on the date of the grant. In the same three-year period, the professional advisors to the Supervisory Board may receive 9,000 options for 1999 and 4,500 options for both 2000 and 2001. 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The options may be granted to purchase shares of common stock at a price not lower than the market price of the shares on the date of grant. In connection with a revision of its equity-based compensation policy, the Company decided in 2005 to accelerate the vesting period of all outstanding unvested stock options. The options expire ten years after the date of grant. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> In 2002, the Shareholders voted to adopt a Stock Option Plan for Supervisory Board Members and Professionals of the Supervisory Board. Under this plan, 12,000 options can be granted per year to each member of the Supervisory Board and 6,000 options per year to each professional advisor to the Supervisory Board. Options would vest 30&#160;days after the date of grant. 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</td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Options granted: </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 20pt"> 2001 Plan </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 20pt"> Supervisory Board Plan </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Options expired </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (5,923,552 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> $ </td> <td nowrap="nowrap" align="right" valign="bottom"> 44.00 - $62.01 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> $ </td> <td nowrap="nowrap" align="right" valign="bottom"> 59.1 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Options forfeited </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (1,410,650 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> $ </td> <td nowrap="nowrap" align="right" valign="bottom"> 16.73 - $62.01 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> $ </td> <td nowrap="nowrap" align="right" valign="bottom"> 27.9 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Options exercised </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Outstanding at December&#160;31, 2008 </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 39,431,433 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> $ </td> <td nowrap="nowrap" align="right" valign="bottom"> 16.73 - $39.00 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> $ </td> <td nowrap="nowrap" align="right" valign="bottom"> 27.35 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="font-size: 1pt"> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Options granted: </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 20pt"> 2001 Plan </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 20pt"> Supervisory Board Plan </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Options expired </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Options forfeited </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (1,487,601 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> $ </td> <td nowrap="nowrap" align="right" valign="bottom"> 17.08 - $39.00 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> $ </td> <td nowrap="nowrap" align="right" valign="bottom"> 27.69 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Options exercised </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> <b>Outstanding at December&#160;31, 2009</b> </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>37,943,832</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>$</b> </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>16.73 - $39.00</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>$</b> </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>27.33</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="font-size: 1pt"> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> </tr> </table> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Stock options exercisable following acceleration in 2005 of vesting for all outstanding unvested stock options were as follows: </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <table border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff; text-align: left"> <!-- Table Width Row BEGIN --> <tr style="font-size: 1pt" valign="bottom"> <td width="65%">&#160;</td><!-- colindex=01 type=maindata --> <td width="2%">&#160;</td><!-- colindex=02 type=gutter --> <td width="4%" align="right">&#160;</td><!-- colindex=02 type=lead --> <td width="1%" align="right">&#160;</td><!-- colindex=02 type=body --> <td width="4%" align="left">&#160;</td><!-- colindex=02 type=hang1 --> <td width="3%">&#160;</td><!-- colindex=03 type=gutter --> <td width="4%" align="right">&#160;</td><!-- colindex=03 type=lead --> <td width="1%" align="right">&#160;</td><!-- colindex=03 type=body --> <td width="4%" align="left">&#160;</td><!-- colindex=03 type=hang1 --> <td width="3%">&#160;</td><!-- colindex=04 type=gutter --> <td width="4%" align="right">&#160;</td><!-- colindex=04 type=lead --> <td width="1%" align="right">&#160;</td><!-- colindex=04 type=body --> <td width="4%" align="left">&#160;</td><!-- colindex=04 type=hang1 --> </tr> <!-- Table Width Row END --> <!-- TableOutputHead --> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom"> <b>December&#160;31,<br /> </b> </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom"> <b>December&#160;31,<br /> </b> </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom"> <b>December&#160;31,<br /> </b> </td> </tr> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>2009</b> </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>2008</b> </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>2007</b> </td> </tr> <tr style="line-height: 3pt; font-size: 1pt"> <td>&#160; </td> </tr> <!-- TableOutputBody --> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Options exercisable </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>37,943,832</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 39,431,433 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 46,765,635 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Weighted average exercise price </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>$</b> </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>27.33</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> $ </td> <td nowrap="nowrap" align="right" valign="bottom"> 27.35 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> $ </td> <td nowrap="nowrap" align="right" valign="bottom"> 31,42 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="font-size: 1pt"> <td> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 3px double #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 3px double #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 3px double #000000"> &#160; </td> <td> &#160; </td> </tr> </table> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> </div> <div style="margin-top: 6pt; 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</td> </tr> </table> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> </div> <div style="margin-top: 12pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b><font style="font-family: 'Times New Roman', Times">16.5&#160;&#8212; Nonvested share awards</font></b> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> On April&#160;29, 2006 the Compensation Committee (on behalf of the entire Supervisory Board and with its approval) granted 66,000 non vested shares to the members of the Supervisory Board and professionals of the Supervisory Board (&#8220;The 2006 Supervisory Board Plan&#8221;), of which 15,000 awards were immediately waived. These awards are granted at the nominal value of the share of &#8364;1.04 and vest over the following period: one third after 12&#160;months, one third after 24&#160;months and one third after 36&#160;months following the date of the grant. Nevertheless, they are not subject to any market, performance or service conditions. As such, their associated compensation cost was recorded immediately at grant. In 2007, the first tranche of the plan, representing 17,000&#160;shares vested as at April&#160;27, 2007. In 2008, the second tranche of the plan, representing 16,000&#160;shares vested as at April&#160;27, 2008. Furthermore, following the end of mandate of one of the members of the Board, 4,000&#160;shares were accelerated in 2008. In 2009, the third tranche of the plan, representing 14,000&#160;shares vested as at April&#160;27, 2009. As of December&#160;31 2009, no awards were outstanding under the 2006 Supervisory Board Plan. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> On September&#160;29, 2006 the Company granted 4,854,280 nonvested shares to senior executives and selected employees to be issued upon vesting from treasury stock (&#8220;The 2006 Employee Plan&#8221;). The Compensation Committee and the Supervisory Board also authorized on September&#160;29, 2006 the future grant of additional shares to selected employees upon nomination by the Managing Board of the Company. These additional shares were granted in 2006 and 2007, as detailed below. The shares were granted for free to employees, and vested upon completion of three internal performance conditions, each weighting for one third of the total number of awards granted. Except for employees in one of the Company&#8217;s European subsidiaries for whom a subplan was simultaneously created on September&#160;29, 2006 for statutory payroll tax purposes, the nonvested shares vested over the following requisite service period: 32% as at April&#160;27, 2007, 32% as at April&#160;27, 2008 and 36% as at April&#160;27, 2009. The following requisite service period was required for the nonvested shares granted under the local subplan: 64% of the granted stock awards vested two years from grant date and 36% as at April&#160;27, 2009. In addition, the sale by the employees of the shares included in the subplan, once vested, is restricted over an additional two-year period which is not considered as an extension of the requisite service period. In compliance with the graded vesting of the grant, the first tranche of the original plan, representing 1,120,234&#160;shares, vested as at April&#160;27, 2007. In addition, 10,120&#160;shares were accelerated during the year, of which 340 under the subplan. In 2008, the second tranche of the original plan, representing 1,079,952&#160;shares, vested as at April&#160;27, 2008, and the first tranche of the subplan, representing 748,394&#160;shares vested as at September&#160;30, 2008. In addition, 30,590&#160;shares were accelerated during the year, of which 5,941 under the subplan. These shares were transferred to employees from the treasury shares owned by the Company. In 2009, the third tranche of the original plan, representing 1,155,238&#160;shares and the third tranche of the subplan, representing 400,149&#160;shares vested as at April&#160;27, 2009. In addition, 9,446&#160;shares were accelerated during the year, of which 4,035 under the subplan. At December&#160;31, 2009, no nonvested shares from the 2006 plan were outstanding. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> On December&#160;19, 2006, the Compensation Committee (on behalf of the entire Supervisory Board and with its approval) granted additional 62,360&#160;shares to selected employees designated by the Managing Board of the Company as part of the 2006 Employee Plan. This additional grant had the same terms and conditions as the original plan. In compliance with the graded vesting of the grant, the first tranche of this plan, representing 8,885&#160;shares, vested as at April&#160;27, 2007, and the first tranche of the subplan, representing 21,648&#160;shares vested as at December&#160;20, 2008. 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This additional grant had the same terms and conditions as the original plan. In compliance with the graded vesting of the grant, the first tranche of this plan, representing 50,031&#160;shares, vested as at April&#160;27, 2007. In addition, 1,196&#160;shares were accelerated during the year. In 2008, the second tranche of the plan, representing 47,551&#160;shares vested as at April&#160;27, 2008. In addition, 598&#160;shares were accelerated during the year. In 2009, the first tranche of the subplan, representing 36,122&#160;shares vested as at February&#160;28, 2009. The third tranche of the plan representing 51,514&#160;shares and the third tranche of the subplan representing 20,174&#160;shares vested as at April&#160;27, 2009. In addition, 108&#160;shares were accelerated during the year. As at December&#160;31, 2009, no nonvested shares were outstanding as part of this additional grant. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> On April&#160;28, 2007, the Compensation Committee (on behalf of the entire Supervisory Board and with its approval) granted 165,000 stock-based awards to the members of the Supervisory Board and professionals of the Supervisory Board (&#8220;The 2007 Supervisory Board Plan&#8221;), of which 22,500 awards were immediately waived. These awards are granted at the nominal value of the share of &#8364;1.04 and vest over the following period: one third after 12&#160;months, one third after 24&#160;months and one third after 36&#160;months following the date of the grant. Nevertheless, they are not subject to any market, performance or service conditions. As such, their associated compensation cost was recorded immediately at grant. In compliance with the graded vesting of the grant, the first tranche of this plan, representing 45,000&#160;shares, vested as at April&#160;28, 2008. Furthermore, following the end of mandate of one of the members of the Board, 7,500&#160;shares were accelerated in 2008. The second tranche of this plan, representing 45,000&#160;shares, vested as at April&#160;28, 2009. As of December&#160;31, 2009, 45,000 awards were outstanding under the 2007 Supervisory Board Plan. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> On June&#160;18, 2007, the Company granted 5,691,840 nonvested shares to senior executives and selected employees to be issued upon vesting from treasury stock (&#8220;The 2007 Employee Plan&#8221;). The Compensation Committee and the Supervisory Board also authorized the future grant of additional shares to selected employees upon nomination by the Managing Board of the Company as detailed below. The shares were granted for free to employees, and will vest upon completion of three internal performance conditions, each weighting for one third of the total number of awards granted. Except for employees in two of the Company&#8217;s European subsidiaries for whom a subplan was simultaneously created, the nonvested shares vest over the following requisite service period: 32% as at April&#160;26, 2008, 32% as at April&#160;26, 2009 and 36% as at April&#160;26, 2010. The following requisite service period is required for the nonvested shares granted under the two local subplans: for the first one, 64% of the granted stock awards vest as at June&#160;19, 2009 and 36% as at June&#160;19, 2010. In addition, the sale by the employees of the shares once vested is restricted over an additional two-year period, which is not considered as an extension of the requisite service period. For the second subplan, 32% vest as at June&#160;19, 2008, 32% as at April&#160;26, 2009 and 36% as at April&#160;26, 2010. In 2008, the Company failed to meet one performance condition during one semester. Consequently, one sixth of the shares granted, totaling 926,121&#160;shares, of which 242,233 on the first subplan and 2,634 on the second subplan, was lost for vesting. In compliance with the graded vesting of the grant, the first tranche of the original plan, representing 1,097,124&#160;shares, vested as at April&#160;26, 2008. The first tranche of one of the local subplans, representing 4,248&#160;shares, vested as at June&#160;19, 2008. In addition, 31,786&#160;shares were accelerated during the year, of which 2,999 under the subplans. These shares were transferred to employees from the treasury shares owned by the Company. The second tranche of the original plan, representing 1,048,429&#160;shares and the second tranche of one of the local subplans, representing 3,914&#160;shares, vested as at April&#160;26, 2009. The first tranche of the other local subplan, representing 768,157&#160;shares, vested as at June&#160;19, 2009. In addition, 32,360&#160;shares were accelerated during the year, of which 4,974 under the subplans. These shares were transferred to employees from the treasury shares owned by the Company. 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In compliance with the graded vesting of the grant, the first tranche of the original plan, representing 10,434&#160;shares, vested as at April&#160;26, 2008. In addition, 11,311&#160;shares were accelerated during the year. The second tranche of the original plan, representing 21,585&#160;shares, vested as at April&#160;26, 2009. The first tranche of the subplan, representing 1,602&#160;shares, vested as at December&#160;7, 2009. 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This additional grant has the same terms and conditions as the original plan. As a consequence of the failed performance condition explained above, 22,559&#160;shares were lost for vesting, of which 5,887 on the local subplan. In compliance with the graded vesting of the grant, the first tranche of the original plan, representing 26,407&#160;shares, vested as at April&#160;26, 2008. In addition, 320&#160;shares were accelerated during the year. The second tranche of the original plan, representing 21,978&#160;shares, vested as at April&#160;26, 2009. In addition, 567&#160;shares were accelerated during the year. At December&#160;31, 2009, 37,534 nonvested shares were outstanding as part of this additional grant, of which 12,821 under the local subplan. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> On May&#160;16, 2008, the Compensation Committee (on behalf of the entire Supervisory Board and with its approval) granted 165,000 stock-based awards to the members of the Supervisory Board and professionals of the Supervisory Board (&#8220;The 2008 Supervisory Board Plan&#8221;), of which 22,500 awards were immediately waived. These awards are granted at the nominal value of the share of &#8364;1.04 and vest over the following period: one third after 12&#160;months, one third after 24&#160;months and one third after 36&#160;months following the date of the grant. Nevertheless, they are not subject to any market, performance or service conditions. As such, their associated compensation cost was recorded immediately at grant. In compliance with the graded vesting of the grant, the first tranche of this plan, representing 47,500&#160;shares, vested as at May&#160;16, 2009. As of December&#160;31, 2009, 95,000 awards were outstanding under the 2008 Supervisory Board Plan. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> On July&#160;22, 2008, the Company granted 5,723,305 nonvested shares to senior executives and selected employees to be issued upon vesting from treasury stock (&#8220;The 2008 Employee Plan&#8221;). The Compensation Committee also authorized the future grant of additional shares to selected employees upon nomination by the Managing Board of the Company. The shares were granted for free to employees, and will vest upon completion of three internal performance conditions, each weighting for one third of the total number of awards granted. Except for employees in two of the Company&#8217;s European subsidiaries for whom a subplan was simultaneously created, the nonvested shares vest over the following requisite service period: 32% as at May&#160;14, 2009, 32% as at May&#160;14, 2010 and 36% as at May&#160;14, 2011. The following requisite service period is required for the nonvested shares granted under the two local subplans: for the first one, 64% of the granted stock awards vest as at July&#160;23, 2010 and 36% as at May&#160;14, 2011. In addition, the sale by the employees of the shares once vested is restricted over an additional two-year period, which is not considered as an extension of the requisite service period. For the second one, 32% vest as at July&#160;22, 2009, 32% as at May&#160;14, 2010 and 36% as at May&#160;14, 2011. In 2009, based on the final calculations, it turned out that the Company failed to meet two performance conditions. Consequently, two third of the shares granted, totaling 3,747,193&#160;shares, of which 1,020,134 on the first subplan and 35,598 on the second subplan, was lost for vesting. In compliance with the graded vesting of the grant, the first tranche of the original plan, representing 427,324&#160;shares, vested as at May&#160;14, 2009. The first tranche of one of the local subplans, representing 5,719&#160;shares, vested as at July&#160;23, 2009. In addition, 15,588&#160;shares were accelerated during the year. These shares were transferred to employees from the treasury shares owned by the Company. At December&#160;31, 2009, 1,399,373 nonvested shares were outstanding, of which 509,324 under the first local subplan and 11,906 under the second local subplan. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> On February&#160;27, 2009, the Managing Board of the Company, as authorized by the Supervisory Board of the Compensation Committee, granted additional 50,400&#160;shares to selected employees designated by the Managing Board of the Company as part of the 2008 Employee Plan. This additional grant has the same terms and conditions as the original plan. As a consequence of the failed performance condition explained above, 33,589&#160;shares were lost for vesting, of which 11,365 on the first local subplan and 1,332 on the second local subplan. In compliance with the graded vesting of the grant, the first tranche of the original plan, representing 3,348&#160;shares, vested as at May&#160;14, 2009. At December&#160;31, 2009, 12,329 nonvested shares were outstanding as part of this additional grant, of which 5,685 under the first local subplan and 668 under the second local subplan. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> On May&#160;20, 2009, the Compensation Committee (on behalf of the entire Supervisory Board and with its approval) granted 165,000 stock-based awards to the members of the Supervisory Board and professionals of the Supervisory Board (&#8220;The 2009 Supervisory Board Plan&#8221;), of which 7,500 awards were immediately waived. These awards are granted at the nominal value of the share of &#8364;1.04 and vest over the following period: one third after 12&#160;months, one third after 24&#160;months and one third after 36&#160;months following the date of the grant. Nevertheless, they are not subject to any market, performance or service conditions. As such, their associated compensation cost was recorded immediately at grant. As of December 31 2009, 157,500 awards were outstanding under the 2009 Supervisory Board Plan. </div> <!-- XBRL Pagebreak Begin --> </div> <!-- END PAGE WIDTH --> <!-- PAGEBREAK --> <div style="margin-left: 0%"> <!-- BEGIN PAGE WIDTH --> <div style="margin-top: 0pt; font-size: 1pt"> </div> <div align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b> <font style="font-family: 'Times New Roman', Times"> </font> </b> </div> <!-- XBRL Pagebreak End --> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> On July&#160;28, 2009, the Company granted 5,575,240 nonvested shares to senior executives and selected employees to be issued upon vesting from treasury stock (&#8220;The 2009 Employee Plan&#8221;). The Compensation Committee also authorized the future grant of additional shares to selected employees upon nomination by the Managing Board of the Company. The shares were granted for free to employees, and will vest upon completion of three internal performance conditions, each weighting for one third of the total number of awards granted. Except for employees in one of the Company&#8217;s European subsidiaries for whom a subplan was simultaneously created, the nonvested shares vest over the following requisite service period: 32% as at May&#160;20, 2010, 32% as at May&#160;20, 2011 and 36% as at May&#160;20, 2012. The following requisite service period is required for the nonvested shares granted under the local subplan: 64% of the granted stock awards vest as at July&#160;29, 2011 and 36% as at May&#160;20, 2012. In addition, the sale by the employees of the shares once vested is restricted over an additional two-year period, which is not considered as an extension of the requisite service period. At December&#160;31, 2009, 5,532,440 nonvested shares were outstanding, of which 1,438,185 under the subplan. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> On November&#160;30, 2009, the Managing Board of the Company, as authorized by the Supervisory Board of the Compensation Committee, granted additional 8,300&#160;shares to selected employees designated by the Managing Board of the Company as part of the 2009 Employee Plan. This additional grant has the same terms and conditions as the original plan. At December&#160;31, 2009, 8,300 nonvested shares were outstanding as part of this additional grant. </div> <!-- XBRL Pagebreak Begin --> </div> <!-- END PAGE WIDTH --> <!-- PAGEBREAK --> <div style="margin-left: 0%"> <!-- BEGIN PAGE WIDTH --> <div style="margin-top: 0pt; font-size: 1pt"> </div> <div align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b> <font style="font-family: 'Times New Roman', Times"> </font> </b> </div> <!-- XBRL Pagebreak End --> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> A summary of the nonvested share activity for the years ended December&#160;31, 2009 and December&#160;31, 2008 is presented below: </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <table border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff; text-align: left"> <!-- Table Width Row BEGIN --> <tr style="font-size: 1pt" valign="bottom"> <td width="72%">&#160;</td><!-- colindex=01 type=maindata --> <td width="2%">&#160;</td><!-- colindex=02 type=gutter --> <td width="1%" align="right">&#160;</td><!-- colindex=02 type=lead --> <td width="11%" align="right">&#160;</td><!-- colindex=02 type=body --> <td width="1%" align="left">&#160;</td><!-- colindex=02 type=hang1 --> <td width="3%">&#160;</td><!-- colindex=03 type=gutter --> <td width="1%" align="right">&#160;</td><!-- colindex=03 type=lead --> <td width="8%" align="right">&#160;</td><!-- colindex=03 type=body --> <td width="1%" align="left">&#160;</td><!-- colindex=03 type=hang1 --> </tr> <!-- Table Width Row END --> <!-- TableOutputHead --> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px"> <b>Nonvested Shares</b> </div> </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>Number of Shares</b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>Exercise price</b> </td> <td> &#160; </td> </tr> <tr style="line-height: 3pt; font-size: 1pt"> <td>&#160; </td> </tr> <!-- TableOutputBody --> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Outstanding as at December&#160;31, 2007 </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 10,510,030 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> $ </td> <td nowrap="nowrap" align="right" valign="bottom"> 0-&#8364;1.04 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Awards granted: </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 20pt"> 2007 Employee Plan </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 135,550 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> $ </td> <td nowrap="nowrap" align="right" valign="bottom"> 0 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 20pt"> 2008 Employee Plan </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 5,723,305 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> $ </td> <td nowrap="nowrap" align="right" valign="bottom"> 0 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 20pt"> 2008 Supervisory Board Plan </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 165,000 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#8364; </td> <td nowrap="nowrap" align="right" valign="bottom"> 1.04 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Awards forfeited: </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 20pt"> 2005 Employee Plan </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (7,900 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> $ </td> <td nowrap="nowrap" align="right" valign="bottom"> 0 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 20pt"> 2006 Employee Plan </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (62,162 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> $ </td> <td nowrap="nowrap" align="right" valign="bottom"> 0 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 20pt"> 2007 Employee Plan </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (141,201 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> $ </td> <td nowrap="nowrap" align="right" valign="bottom"> 0 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 20pt"> 2008 Employee Plan </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (56,185 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> $ </td> <td nowrap="nowrap" align="right" valign="bottom"> 0 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 20pt"> 2008 Supervisory Board Plan </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (22,500 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#8364; </td> <td nowrap="nowrap" align="right" valign="bottom"> 1.04 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Awards cancelled on failed vesting conditions: </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 20pt"> 2007 Employee Plan </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (962,703 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> $ </td> <td nowrap="nowrap" align="right" valign="bottom"> 0 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 20pt"> Awards vested: </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 20pt"> 2005 Employee Plan </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (903,381 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> $ </td> <td nowrap="nowrap" align="right" valign="bottom"> 0 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 20pt"> 2005 Supervisory Board Plan </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (17,000 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#8364; </td> <td nowrap="nowrap" align="right" valign="bottom"> 1.04 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 20pt"> 2006 Employee Plan </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (1,937,618 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> $ </td> <td nowrap="nowrap" align="right" valign="bottom"> 0 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 20pt"> 2006 Supervisory Board Plan </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (20,000 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#8364; </td> <td nowrap="nowrap" align="right" valign="bottom"> 1.04 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 20pt"> 2007 Employee Plan </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (1,181,630 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> $ </td> <td nowrap="nowrap" align="right" valign="bottom"> 0 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 20pt"> 2007 Supervisory Board Plan </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (52,500 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#8364; </td> <td nowrap="nowrap" align="right" valign="bottom"> 1.04 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Outstanding as at December&#160;31, 2008 </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 11,169,105 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> $ </td> <td nowrap="nowrap" align="right" valign="bottom"> 0-&#8364;1.04 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Awards granted: </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 20pt"> 2008 Employee Plan </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 50,400 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> $ </td> <td nowrap="nowrap" align="right" valign="bottom"> 0 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 20pt"> 2009 Employee Plan </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 5,583,540 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> $ </td> <td nowrap="nowrap" align="right" valign="bottom"> 0 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 20pt"> 2009 Supervisory Board Plan </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 165,000 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#8364; </td> <td nowrap="nowrap" align="right" valign="bottom"> 1.04 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Awards forfeited: </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 20pt"> 2006 Employee Plan </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (8,507 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> $ </td> <td nowrap="nowrap" align="right" valign="bottom"> 0 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 20pt"> 2007 Employee Plan </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (52,896 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> $ </td> <td nowrap="nowrap" align="right" valign="bottom"> 0 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 20pt"> 2008 Employee Plan </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (73,057 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> $ </td> <td nowrap="nowrap" align="right" valign="bottom"> 0 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 20pt"> 2009 Employee Plan </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (42,800 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> $ </td> <td nowrap="nowrap" align="right" valign="bottom"> 0 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 20pt"> 2009 Supervisory Board Plan </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (7,500 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#8364; </td> <td nowrap="nowrap" align="right" valign="bottom"> 1.04 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Awards cancelled on failed vesting conditions: </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 20pt"> 2008 Employee Plan </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (3,780,782 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> $ </td> <td nowrap="nowrap" align="right" valign="bottom"> 0 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Awards vested: </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 20pt"> 2006 Employee Plan </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (1,694,162 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> $ </td> <td nowrap="nowrap" align="right" valign="bottom"> 0 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 20pt"> 2006 Supervisory Board Plan </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (14,000 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#8364; </td> <td nowrap="nowrap" align="right" valign="bottom"> 1.04 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 20pt"> 2007 Employee Plan </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (1,898,592 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> $ </td> <td nowrap="nowrap" align="right" valign="bottom"> 0 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 20pt"> 2007 Supervisory Board Plan </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (45,000 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#8364; </td> <td nowrap="nowrap" align="right" valign="bottom"> 1.04 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 20pt"> 2008 Employee Plan </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (451,979 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> $ </td> <td nowrap="nowrap" align="right" valign="bottom"> 0 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 20pt"> 2008 Supervisory Board Plan </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (47,500 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#8364; </td> <td nowrap="nowrap" align="right" valign="bottom"> 1.04 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> <b>Outstanding as at December&#160;31, 2009</b> </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>8,851,270</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>$</b> </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>0-&#8364;1.04 </b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="font-size: 1pt"> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> </tr> </table> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The Company recorded compensation expense for the nonvested share awards based on the fair value of the awards at the grant date. The fair value of the awards granted in 2005 represents the $16.61&#160;share price at the date of the grant. 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The weighted average grant-date fair value of nonvested shares granted to employees under the 2005 Employee Plan was $8.50. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> In 2006, the Company accounted for the impact of the modification of the 2005 Employee Plan with the creation of a local subplan in compliance with U.S.&#160;GAAP guidance. Such modification did not generate any incremental cost since, when measured as at the modification date, the fair value was discounted at 100% due to the nil probability as at March 2006 to achieve the market condition. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The grant date fair value of nonvested shares granted to employees under the 2006 Employee Plan was $17.35. On the 2006 Employee Plan, the fair value of the nonvested shares granted did not reflect any discount since they are not affected by a market condition. On February&#160;27, 2007, the Compensation Committee approved the statement that the three performance conditions were met. 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Consequently, the compensation expense recorded on the 2008 Employee Plan reflects the statement that one third of the awards granted will vest, as far as the service condition is met. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The grant date fair value of nonvested shares granted to employees under the 2009 Employee Plan was $7.54. On the 2009 Employee Plan, the fair value of the nonvested shares granted did not reflect any discount since they are not affected by a market condition. On the contrary, the Company estimates the number of awards expected to vest by assessing the probability of achieving the performance conditions. At December&#160;31, 2009, a final determination of the achievement of the performance conditions had not yet been made by the Compensation Committee of the Supervisory Board. However, the Company has estimated that two third of awards are expected to vest. Consequently, the compensation expense recorded for the 2009 Employee Plan reflects the vesting of two third of the awards granted, subject to the service condition being met. 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Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 5 -Paragraph 15 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 3 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph d -Article 4 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 4 -Section C, E Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 12 -Paragraph 10 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 29, 30, 31 -Article 5 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 43 -Chapter 1 -Section B -Paragraph 7, 11A Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 129 -Paragraph 2, 3, 4, 5, 6, 7, 8 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Article 4 false false 1 2 false UnKnown UnKnown UnKnown false true XML 37 defnref.xml IDEA: XBRL DOCUMENT No authoritative reference available. 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</td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>56</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 65 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> 0.33% due 2016, floating interest rate at Libor + 0.052% </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>136</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 136 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> 0.57% due 2016, floating interest rate at Libor + 0.317% </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>180</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 180 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> 0.49% due 2016, floating interest rate at Libor + 0.213% </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>200</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 200 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; 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</td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 13 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> 6.00% (weighted average), due 2014, fixed interest rate </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>9</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> 5.29% (weighted average), due 2017, fixed interest rate </div> </td> <td> &#160; 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</td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> -0.50% convertible bonds due 2013 </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>&#8212;</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> 1.50% convertible bonds due 2016 </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>943</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 1,036 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="font-size: 1pt"> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> <b>Total long-term debt</b> </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>2,492</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 2,677 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Less current portion </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(176</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (123 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> </tr> <tr valign="bottom" style="font-size: 1pt"> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> <b>Total long-term debt, less current portion</b> </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>2,316</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 2,554 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="font-size: 1pt"> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 3px double #000000"> &#160; </td> <td style="border-top: 3px double #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 3px double #000000"> &#160; </td> <td style="border-top: 3px double #000000"> &#160; 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</td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom"> <b>December&#160;31,<br /> </b> </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom"> <b>December&#160;31,<br /> </b> </td> </tr> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>2009</b> </td> <td> &#160; </td> <td colspan="3" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>2008</b> </td> </tr> <tr style="line-height: 3pt; font-size: 1pt"> <td>&#160; </td> </tr> <!-- TableOutputBody --> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> U.S. dollar </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>1,666</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 1,840 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Euro </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>826</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 837 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Other </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> <b>Total</b> </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>2,492</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 2,677 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> </table> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The European Investment Bank&#8217;s loans denominated in EUR, but drawn in USD, are classified as USD denominated debt. The 2008 figures have been updated accordingly. </div> <!-- XBRL Pagebreak Begin --> </div> <!-- END PAGE WIDTH --> <!-- PAGEBREAK --> <div style="margin-left: 0%"> <!-- BEGIN PAGE WIDTH --> <div style="margin-top: 0pt; font-size: 1pt"> </div> <div align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b> <font style="font-family: 'Times New Roman', Times"> </font> </b> </div> <!-- XBRL Pagebreak End --> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Aggregate future maturities of total long-term debt outstanding (including current portion) are as follows: </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <table border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; 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</td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>119</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> 2013 </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>836</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> 2014 </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>114</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> Thereafter </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>184</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="font-size: 1pt"> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="top"> <div style="text-indent: -10pt; margin-left: 10pt"> <b>Total</b> </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>2,492</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="font-size: 1pt"> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 3px double #000000"> &#160; </td> <td style="border-top: 3px double #000000"> &#160; </td> <td> &#160; </td> </tr> </table> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> In August 2003, the Company issued $1,332&#160;million principal amount at issuance of zero coupon unsubordinated convertible bonds due 2013 with a negative yield of 0.5%. 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During January 2010, the Company repurchased around 200 thousand bonds corresponding to $215&#160;million principal amount for a total cash consideration of $212&#160;million, realizing a gain on the repurchase of $3&#160;million. The total of bonds repurchased in December and January represented approximately 30% of the total amount originally issued. The repurchased bonds have been cancelled in accordance with their terms. In 2006, the Company entered into cancellable swaps with a combined notional value of $200&#160;million to hedge the fair value of a portion of these convertible bonds. As a result of these cancellable swap hedging transactions, which are described further in Note&#160;25, the yield on the $200&#160;million principal amount of the hedged convertible bonds has changed from a nominal interest rate of 1.50% to an effective yield of -0.27% as at November&#160;1, 2008, date on which the fair value hedge relationship was discontinued, as described in Note&#160;6. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> In March 2006, STMicroelectronics Finance B.V. (&#8220;ST BV&#8221;), a wholly owned subsidiary of the Company, issued floating rate senior bonds with a principal amount of &#8364;500&#160;million at an issue price of 99.873%. 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In the event of certain change in control triggering events, the holders can cause ST BV or the Company to repurchase all or a portion of the bonds outstanding. </div> <div style="margin-top: 6pt; font-size: 1pt">&#160; </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The Company entered in 2008 into repurchase agreements with certain financial institutions and gave as collateral $262&#160;million principal amount of floating rate notes classified as <font style="white-space: nowrap">available-for-sale.</font> The Company retained control over the pledged debt securities and consequently did not de-recognize the financial assets from its consolidated balance sheet upon transfer of the collateral. The Company accounted for such transactions as secured borrowings and recognized the cash received upon transfer by recording a liability for the obligation to return the cash to the lending financial institution within a term which did not exceed 57&#160;days. 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In addition, the aggregate amount of the Company&#8217;s and its subsidiaries&#8217; total available short-term credit facilities, excluding foreign exchange credit facilities, was approximately $759&#160;million as at December&#160;31, 2009. In addition, ST-Ericsson had $25&#160;million of unutilized committed line from Ericsson as parent company. The Company also had two committed credit facilities with the European Investment Bank as part of R&#038;D funding programs. The first one, for a total of &#8364;245&#160;million for R&#038;D in France was fully drawn in U.S.&#160;dollars for a total amount of $341&#160;million, of which $49&#160;million were paid back as at December&#160;31, 2009. The second one, signed on July&#160;21, 2008, for a total amount of &#8364;250&#160;million for R&#038;D projects in Italy, was fully drawn in U.S.&#160;dollars for $380&#160;million as at December&#160;31, 2009. 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</td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>December&#160;31,<br /> </b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>December&#160;31,<br /> </b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>December&#160;31,<br /> </b> </td> <td> &#160; </td> </tr> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>2009</b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>2008</b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>2007</b> </td> <td> &#160; 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</td> <td nowrap="nowrap" align="right" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Automotive Products Group (&#8220;APG&#8221;) </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 1,051 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 1,460 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 1,419 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; 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</td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 1,086 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 963 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Imaging (&#8220;IMG&#8221;) </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 417 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 499 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 439 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Others </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 11 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 7 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; 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</td> <td nowrap="nowrap" align="right" valign="bottom"> 1,887 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 2,393 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 2,313 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Microcontrollers, non-Flash, non-volatile Memory and Smart Card products (&#8220;MMS&#8221;) </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 752 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 936 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 825 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Others </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 2 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> <b>Industrial and Multisegment Sector (IMS)</b> </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>2,641</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 3,329 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 3,138 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; 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</td> <td nowrap="nowrap" align="right" valign="bottom"> 416 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 416 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 207 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Mobile Platforms (&#8220;MP&#8221;) </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 300 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; 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</td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Others </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> 11 </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> <b>Wireless</b> </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; 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margin-left: 10pt"> STE restructuring plan </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (99 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (1 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (100 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Goodwill annual impairment test </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (6 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (6 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Other restructuring initiatives </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (4 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (53 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (2 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (59 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> <b>Total</b> </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(35</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(221</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(35</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(291</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> </tr> <tr valign="bottom" style="font-size: 1pt"> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> </tr> </table> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> </div> <div style="margin-top: 12pt; font-size: 1pt">&#160; </div> <table border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff; text-align: left"> <!-- Table Width Row BEGIN --> <tr style="font-size: 1pt" valign="bottom"> <td width="44%">&#160;</td><!-- colindex=01 type=maindata --> <td width="2%">&#160;</td><!-- colindex=02 type=gutter --> <td width="1%" align="right">&#160;</td><!-- colindex=02 type=lead --> <td width="7%" align="right">&#160;</td><!-- colindex=02 type=body --> <td width="1%" align="left">&#160;</td><!-- colindex=02 type=hang1 --> <td width="3%">&#160;</td><!-- colindex=03 type=gutter --> <td width="1%" align="right">&#160;</td><!-- colindex=03 type=lead --> <td width="9%" align="right">&#160;</td><!-- colindex=03 type=body --> <td width="1%" align="left">&#160;</td><!-- colindex=03 type=hang1 --> <td width="3%">&#160;</td><!-- colindex=04 type=gutter --> <td width="1%" align="right">&#160;</td><!-- colindex=04 type=lead --> <td width="9%" align="right">&#160;</td><!-- colindex=04 type=body --> <td width="1%" align="left">&#160;</td><!-- colindex=04 type=hang1 --> <td width="3%">&#160;</td><!-- colindex=05 type=gutter --> <td width="1%" align="right">&#160;</td><!-- colindex=05 type=lead --> <td width="12%" align="right">&#160;</td><!-- colindex=05 type=body --> <td width="1%" align="left">&#160;</td><!-- colindex=05 type=hang1 --> </tr> <!-- Table Width Row END --> <!-- TableOutputHead --> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>Total impairment,<br /> </b> </td> <td> &#160; </td> </tr> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>restructuring<br /> </b> </td> <td> &#160; </td> </tr> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>charges and other<br /> </b> </td> <td> &#160; </td> </tr> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>Restructuring<br /> </b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>Other related<br /> </b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>related closure<br /> </b> </td> <td> &#160; </td> </tr> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px"> <b>Year Ended December&#160;31, 2008</b> </div> </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>Impairment</b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>charges</b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>closure costs</b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>costs</b> </td> <td> &#160; </td> </tr> <tr style="line-height: 3pt; font-size: 1pt"> <td>&#160; </td> </tr> <!-- TableOutputBody --> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> 2007 restructuring plan </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (77 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (79 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (8 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (164 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> FMG deconsolidation </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (190 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (2 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (24 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (216 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Goodwill annual impairment test </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (13 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> &#8212; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> (13 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Other restructuring initiatives </div> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; 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</td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(156</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(35</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> <td> &#160; </td> <td nowrap="nowrap" align="left" valign="bottom"> &#160; </td> <td nowrap="nowrap" align="right" valign="bottom"> <b>(481</b> </td> <td nowrap="nowrap" align="left" valign="bottom"> <b>)</b> </td> </tr> <tr valign="bottom" style="font-size: 1pt"> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td style="border-top: 1px solid #000000"> &#160; </td> <td> &#160; </td> <td> &#160; 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</td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>Year Ended<br /> </b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>Year Ended<br /> </b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>Year Ended<br /> </b> </td> <td> &#160; </td> </tr> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="center" valign="bottom"> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>December&#160;31,<br /> </b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>December&#160;31,<br /> </b> </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>December&#160;31,<br /> </b> </td> <td> &#160; </td> </tr> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="center" valign="bottom"> &#160; 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Examples include land, building and production equipment. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures. This element may be used as a single block of text to include the entire PPE disclosure, including data and tables. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 12 -Paragraph 5 false false 1 2 false UnKnown UnKnown UnKnown false true
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