0000702165
2007-12-31
0000702165
2008-12-31
0000702165
2009-04-01
2009-06-30
0000702165
2008-04-01
2008-06-30
0000702165
2008-01-01
2008-06-30
0000702165
2008-06-30
0000702165
2009-06-30
0000702165
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xbrli:pure
iso4217:USD
xbrli:shares
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xbrli:shares
n/a
false
--12-31
2009-06-30
10-Q
0000702165
367636640
Yes
Large Accelerated Filer
23454318004
Norfolk Southern Corporation
No
Yes
1209000000
733000000
674000000
391000000
-27000000
6000000
454000000
214000000
344000000
144000000
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188000000
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<div>
<p class="MsoNormal">
<a name="_AUC0dcb74f04f25445a8ba984f9149ac617"><b style=
"mso-bidi-font-weight: normal"><span style=
"FONT-SIZE: 11pt">11.<span style=
"mso-spacerun: yes">  </span> Commitments and
Contingencies</span></b></a>
</p>
<p class="MsoNormal">
<span><b style="mso-bidi-font-weight: normal"><span style=
"FONT-SIZE: 11pt">  </span></b></span>
</p>
<p class="MsoNormal">
<span><b style="mso-bidi-font-weight: normal"><span style=
"FONT-SIZE: 11pt">Lawsuits</span></b></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">Norfolk Southern and/or
certain subsidiaries are defendants in numerous lawsuits and
other claims relating principally to railroad
operations.<span style="mso-spacerun: yes">  </span> When
management concludes that it is probable that a liability has
been incurred and the amount of the liability can be
reasonably estimated, it is accrued through a charge to
earnings.<span style="mso-spacerun: yes">  </span> While the
ultimate amount of liability incurred in any of these
lawsuits and claims is dependent on future developments, in
management’s opinion, the recorded liability is adequate to
cover the future payment of such liability and
claims.<span style="mso-spacerun: yes">  </span> However, the
final outcome of any of these lawsuits and claims cannot be
predicted with certainty, and unfavorable or unexpected
outcomes could result in additional accruals that could be
significant to results of operations in a particular year or
quarter.<span style="mso-spacerun: yes">  </span> Any
adjustments to the recorded liability will be reflected in
earnings in the periods in which such adjustments are
known.</span></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
<p class="MsoNormal">
<span><b style="mso-bidi-font-weight: normal"><span style=
"FONT-SIZE: 11pt">Casualty Claims</span></b></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">Casualty claims include
employee personal injury and occupational claims as well as
third-party claims, all exclusive of legal costs.<span style=
"mso-spacerun: yes">  </span> To aid in valuing its personal
injury liability and determining the amount to accrue with
respect to such claims during the year, NS’ management
utilizes studies prepared by an independent consulting
actuarial firm.<span style="mso-spacerun: yes">  </span>
Job-related accidental injury and occupational claims are
subject to the Federal Employers’ Liability Act (FELA), which
is applicable only to railroads.<span style=
"mso-spacerun: yes">  </span> FELA’s fault-based system
produces results that are unpredictable and inconsistent as
compared with a no-fault workers’ compensation
system.<span style="mso-spacerun: yes">  </span> The
variability inherent in this system could result in actual
costs being different from the liability
recorded.<span style="mso-spacerun: yes">  </span> While the
ultimate amount of claims incurred is dependent on future
developments, in management’s opinion, the recorded liability
is adequate to cover the future payments of claims and is
supported by the most recent actuarial study.<span style=
"mso-spacerun: yes">  </span> In all cases, NS records a
liability when the expected loss for the claim is both
probable and estimable.</span></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">In April 2008, NS settled
the lawsuit brought by Avondale Mills for claims associated
with the January 6, 2005, derailment in Graniteville,
SC.<span style="mso-spacerun: yes">  </span> A portion of the
settlement was not reimbursed by insurance and was included
in first quarter 2008 expenses.<span style=
"mso-spacerun: yes">  </span> The total liability related to
the derailment represents NS’ best estimate based on current
facts and circumstances.<span style=
"mso-spacerun: yes">  </span> The estimate includes amounts
related to business property damage and other economic
losses, personal injury and individual property damage
claims, as well as third-party response costs.<span style=
"mso-spacerun: yes">  </span> NS’ commercial insurance
policies are expected to cover substantially all expenses
related to this derailment above the unreimbursed portion and
NS’ self-insured retention, including NS’ response costs and
legal fees.<span style="mso-spacerun: yes">  </span> The
Consolidated Balance Sheets reflect long-term receivables for
estimated recoveries from NS’ insurance carriers.<span style=
"mso-spacerun: yes">  </span> NS is engaged in arbitration
with one of its insurance carriers that failed to respond to
an insurance claim submitted by NS.<span style=
"mso-spacerun: yes">  </span> NS believes these expenses are
covered by the insurance policy and that recovery of the
contested amount is probable, in that NS expects the
arbitrator will determine the settlement amounts to be
reasonable and that the insurer’s refusal to consent to and
to fund the settlement was a breach of contract.<span style=
"mso-spacerun: yes">  </span> Accordingly, NS has recorded
the full recovery attributable to such carrier
($100 million).<span style="mso-spacerun: yes">  </span> In
October 2008, another of NS’ insurance carriers provided the
preliminary findings of its review of NS’ reimbursement
request and reported that it may dispute a portion of that
request.<span style="mso-spacerun: yes">  </span> NS has
initiated arbitration against the carrier and believes that
all expenses contained in the reimbursement request are
covered by the insurance policy and that recovery is
probable.</span></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
<p class="MsoNormal">
<span><b style="mso-bidi-font-weight: normal"><span style=
"FONT-SIZE: 11pt">Employee personal injury
claims</span></b></span> <span><span style=
"FONT-SIZE: 11pt">– The largest component of casualties and
other claims expense is employee personal injury
costs.<span style="mso-spacerun: yes">  </span> The
independent actuarial firm engaged by NS provides quarterly
studies to aid in valuing its employee personal injury
liability and estimating its employee personal injury
expense.<span style="mso-spacerun: yes">  </span> The
actuarial firm studies NS’ historical patterns of reserving
for claims and subsequent settlements, taking into account
relevant outside influences.<span style=
"mso-spacerun: yes">  </span> The actuary uses the results of
these analyses to estimate the ultimate amount of the
liability, which includes amounts for incurred but unasserted
claims.<span style="mso-spacerun: yes">  </span> NS adjusts
its liability quarterly based upon management’s assessment
and the results of the study.<span style=
"mso-spacerun: yes">  </span> The estimate of loss
liabilities is subject to inherent limitation given the
difficulty of predicting future events such as jury
decisions, court interpretations, or legislative changes and
as such the actual loss may vary from the estimated liability
recorded.</span></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
<p class="MsoNormal">
<span><b style="mso-bidi-font-weight: normal"><span style=
"FONT-SIZE: 11pt">Occupational claims</span></b></span>
<span><span style="FONT-SIZE: 11pt">– Occupational claims
(including asbestosis and other respiratory diseases, as well
as conditions allegedly related to repetitive motion) are
often not caused by a specific accident or event but rather
allegedly result from a claimed exposure over
time.<span style="mso-spacerun: yes">  </span> Many such
claims are being asserted by former or retired employees,
some of whom have not been employed in the rail industry for
decades.<span style="mso-spacerun: yes">  </span> The
independent actuarial firm provides an estimate of the
occupational claims liability based upon NS’ history of claim
filings, severity, payments, and other pertinent
facts.<span style="mso-spacerun: yes">  </span> The liability
is dependent upon management’s judgments made as to the
specific case reserves as well as judgments of the consulting
independent actuarial firm in the periodic
studies.<span style="mso-spacerun: yes">  </span> The
actuarial firm’s estimate of ultimate loss includes a
provision for those claims that have been incurred but not
reported.<span style="mso-spacerun: yes">  </span> This
provision is derived by analyzing industry data and
projecting NS’ experience into the future as far as can be
reasonably determined.<span style=
"mso-spacerun: yes">  </span> NS adjusts its liability
quarterly based upon management’s assessment and the results
of the study.<span style="mso-spacerun: yes">  </span>
However, it is possible that the recorded liability may not
be adequate to cover the future payment of
claims.<span style="mso-spacerun: yes">  </span> Adjustments
to the recorded liability are reflected in operating expenses
in the periods in which such adjustments become
known.</span></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
<p class="MsoNormal">
<span><b style="mso-bidi-font-weight: normal"><span style=
"FONT-SIZE: 11pt">Third-party claims</span></b></span>
<span><span style="FONT-SIZE: 11pt">– NS records a liability
for third-party claims including those for highway crossing
accidents, trespasser and other injuries, automobile
liability, property damage, and lading damage.<span style=
"mso-spacerun: yes">  </span> The independent actuarial firm
assists with the calculation of potential liability for
third-party claims, except lading damage, based upon NS’
experience including number and timing of incidents, amount
of payments, settlement rates, number of open claims, and
legal defenses.<span style="mso-spacerun: yes">  </span> The
actuarial estimate includes a provision for claims that have
been incurred but have not yet been reported.<span style=
"mso-spacerun: yes">  </span> Each quarter NS adjusts its
liability based upon management’s assessment and the results
of the study.<span style="mso-spacerun: yes">  </span> Given
the inherent uncertainty in regard to the ultimate outcome of
third-party claims, it is possible that the actual loss may
differ from the estimated liability recorded.</span></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
<p class="MsoNormal">
<span><b style="mso-bidi-font-weight: normal"><span style=
"FONT-SIZE: 11pt">Environmental Matters</span></b></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">NS is subject to various
jurisdictions’ environmental laws and
regulations.<span style="mso-spacerun: yes">  </span> It is
NS’ policy to record a liability where such liability or loss
is probable and its amount can be estimated
reasonably.<span style="mso-spacerun: yes">  </span> Claims,
if any, against third parties for recovery of cleanup costs
incurred by NS are reflected as receivables (when collection
is probable) in the Consolidated Balance Sheets and are not
netted against the associated NS liability.<span style=
"mso-spacerun: yes">  </span> Environmental engineers
regularly participate in ongoing evaluations of all known
sites and in determining any necessary adjustments to
liability estimates.<span style="mso-spacerun: yes">  </span>
NS also has an Environmental Policy Council, composed of
senior managers, to oversee and interpret its environmental
policy.</span></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">NS’ Consolidated Balance
Sheets include liabilities for environmental exposures in the
amount of $40 million at June 30, 2009, and $42 million at
December 31, 2008 (of which $12 million is classified as a
current liability at the end of each period).<span style=
"mso-spacerun: yes">  </span> At June 30, 2009, the liability
represents NS’ estimate of the probable cleanup and
remediation costs based on available information at 147 known
locations.<span style="mso-spacerun: yes">  </span> As of
that date, 12 sites accounted for $23 million of the
liability, and no individual site was considered to be
material.<span style="mso-spacerun: yes">  </span> NS
anticipates that much of this liability will be paid out over
five years; however, some costs will be paid out over a
longer period.</span></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">At 29 locations, one or
more Norfolk Southern subsidiaries, usually in conjunction
with a number of other parties, have been identified as
potentially responsible parties by the Environmental
Protection Agency (EPA) or similar state authorities under
the Comprehensive Environmental Response, Compensation and
Liability Act of 1980, or comparable state statutes, which
often impose joint and several liability for cleanup
costs.</span></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">With respect to known
environmental sites (whether identified by NS or by the EPA
or comparable state authorities), estimates of NS’ ultimate
potential financial exposure for a given site or in the
aggregate for all such sites are necessarily imprecise
because of the widely varying costs of currently available
cleanup techniques, the likely development of new cleanup
technologies, the difficulty of determining in advance the
nature and full extent of contamination and each potential
participant’s share of any estimated loss (and that
participant’s ability to bear it), and evolving statutory and
regulatory standards governing liability.</span></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">The risk of incurring
environmental liability – for acts and omissions, past,
present and future – is inherent in the railroad
business.<span style="mso-spacerun: yes">  </span> Some of
the commodities in NS’ traffic mix, particularly those
classified as hazardous materials, pose special risks that NS
and its subsidiaries work diligently to minimize.<span style=
"mso-spacerun: yes">  </span> In addition, several NS
subsidiaries own, or have owned, land used as operating
property, or which is leased and operated by others, or held
for sale.<span style="mso-spacerun: yes">  </span> Because
environmental problems may exist on these properties that are
latent or undisclosed, there can be no assurance that NS will
not incur environmental liabilities or costs with respect to
one or more of them, the amount and materiality of which
cannot be estimated reliably at this time.<span style=
"mso-spacerun: yes">  </span> Moreover, lawsuits and claims
involving these and potentially other unidentified
environmental sites and matters are likely to arise from time
to time.<span style="mso-spacerun: yes">  </span> The
resulting liabilities could have a significant effect on NS’
financial position, results of operations, or liquidity in a
particular year or quarter.</span></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">On April 24, 2008, the
United States Department of Justice (DOJ) brought an action
against NS for alleged violations of federal environmental
laws resulting from the discharge of chlorine and oil that
occurred as a result of the January 6, 2005, derailment in
Graniteville, SC, including claims for civil penalties as
well as injunctive relief.<span style=
"mso-spacerun: yes">  </span> Although NS’ motion to dismiss
for failure to allege sufficient facts was granted, DOJ was
given leave to, and did, amend its complaint.<span style=
"mso-spacerun: yes">  </span> NS does not believe that the
resolution of these claims will have a material adverse
effect on its financial position, results of operations, or
liquidity.</span></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">Based on its assessment
of the facts and circumstances now known, management believes
that it has recorded the probable costs for dealing with
those environmental matters of which NS is aware.<span style=
"mso-spacerun: yes">  </span> Further, management believes
that it is unlikely that any known matters, either
individually or in the aggregate, will have a material
adverse effect on NS’ financial position, results of
operations, or liquidity.</span></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
<p class="MsoNormal">
<span><b style="mso-bidi-font-weight: normal"><span style=
"FONT-SIZE: 11pt">Insurance</span></b></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">Norfolk Southern obtains
on behalf of itself and its subsidiaries insurance for
potential losses for third-party liability and first-party
property damages.<span style="mso-spacerun: yes">  </span> NS
is currently self-insured up to $25 million and above
$1 billion per occurrence for bodily injury and property
damage to third parties and up to $25 million and above
$175 million per occurrence for property owned by NS or in
NS’ care, custody or control.</span></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
<p class="MsoNormal">
<span><b style="mso-bidi-font-weight: normal"><span style=
"FONT-SIZE: 11pt">Purchase Commitments</span></b></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">At June 30, 2009, NS had
outstanding purchase commitments of approximately $97 million
primarily for track material, freight cars, and RoadRailer®
units in connection with its capital program<a name=
"_AUCf19f217a18fe4255b8ab0ea9a1df37ed"></a>s through
2011.</span></span>
</p>
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0.58
0.29
0.68
0.34
1.00
1.00
1350000000
1350000000
366233106
367636640
368000000
369000000
<div>
<p class="MsoNormal">
<a name="_AUC10bd4354a0e04c0c8f160133007774f5"><b style=
"mso-bidi-font-weight: normal"><span style=
"FONT-SIZE: 11pt">9.<span style="mso-spacerun: yes">  </span>
Comprehensive Income</span></b></a>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">NS’ total comprehensive
income was as follows:</span></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
<table class="MsoTableGrid" style=
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valign="top" width="288">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
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valign="top" width="192" colspan="4">
<p class="MsoNormal" style="TEXT-ALIGN: center" align=
"center">
<span><b style=
"mso-bidi-font-weight: normal"><span style=
"FONT-SIZE: 11pt">Three Months
Ended</span></b></span>
</p>
</td>
<td style=
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<p class="MsoNormal" style="TEXT-ALIGN: center" align=
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<span><b style=
"mso-bidi-font-weight: normal"><span style=
"FONT-SIZE: 11pt">Six Months Ended</span></b></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow: 1">
<td style=
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valign="top" width="288">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 2in; PADDING-TOP: 0in"
valign="top" width="192" colspan="4">
<p class="MsoNormal" style="TEXT-ALIGN: center" align=
"center">
<span><b style=
"mso-bidi-font-weight: normal"><span style=
"FONT-SIZE: 11pt">June 30,</span></b></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 2in; PADDING-TOP: 0in"
valign="top" width="192" colspan="4">
<p class="MsoNormal" style="TEXT-ALIGN: center" align=
"center">
<span><b style=
"mso-bidi-font-weight: normal"><span style=
"FONT-SIZE: 11pt">June 30,</span></b></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow: 2">
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 3in; PADDING-TOP: 0in"
valign="top" width="288">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1in; PADDING-TOP: 0in"
valign="top" width="96" colspan="2">
<p class="MsoNormal" style="TEXT-ALIGN: center" align=
"center">
<span><b style=
"mso-bidi-font-weight: normal"><u><span style=
"FONT-SIZE: 11pt">2009</span></u></b></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1in; PADDING-TOP: 0in"
valign="top" width="96" colspan="2">
<p class="MsoNormal" style="TEXT-ALIGN: center" align=
"center">
<span><b style=
"mso-bidi-font-weight: normal"><u><span style=
"FONT-SIZE: 11pt">2008</span></u></b></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1in; PADDING-TOP: 0in"
valign="top" width="96" colspan="2">
<p class="MsoNormal" style="TEXT-ALIGN: center" align=
"center">
<span><b style=
"mso-bidi-font-weight: normal"><u><span style=
"FONT-SIZE: 11pt">2009</span></u></b></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1in; PADDING-TOP: 0in"
valign="top" width="96" colspan="2">
<p class="MsoNormal" style="TEXT-ALIGN: center" align=
"center">
<span><b style=
"mso-bidi-font-weight: normal"><u><span style=
"FONT-SIZE: 11pt">2008</span></u></b></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow: 3">
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 3in; PADDING-TOP: 0in"
valign="top" width="288">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 4in; PADDING-TOP: 0in"
valign="top" width="384" colspan="8">
<p class="MsoNormal" style="TEXT-ALIGN: center" align=
"center">
<span><i style=
"mso-bidi-font-style: normal"><span style=
"FONT-SIZE: 11pt">($ in millions)</span></i></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow: 4">
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 3in; PADDING-TOP: 0in"
valign="top" width="288">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 9pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 9pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.7in; PADDING-TOP: 0in"
valign="top" width="67">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 9pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 9pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.7in; PADDING-TOP: 0in"
valign="top" width="67">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 9pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 9pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.7in; PADDING-TOP: 0in"
valign="top" width="67">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 9pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 9pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.7in; PADDING-TOP: 0in"
valign="top" width="67">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 9pt">  </span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow: 5">
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 3in; PADDING-TOP: 0in"
valign="top" width="288">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">Net
income</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">$</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.7in; PADDING-TOP: 0in"
valign="top" width="67">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">247</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">$</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.7in; PADDING-TOP: 0in"
valign="top" width="67">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">453</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">$</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.7in; PADDING-TOP: 0in"
valign="top" width="67">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">424</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">$</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.7in; PADDING-TOP: 0in"
valign="top" width="67">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">744</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow: 6">
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 3in; PADDING-TOP: 0in"
valign="top" width="288">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">Other
comprehensive income</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"BORDER-RIGHT: medium none; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 0.7in; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1pt solid; mso-border-bottom-alt: solid windowtext .5pt"
valign="top" width="67">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">11</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"BORDER-RIGHT: medium none; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 0.7in; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1pt solid; mso-border-bottom-alt: solid windowtext .5pt"
valign="top" width="67">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">3</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"BORDER-RIGHT: medium none; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 0.7in; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1pt solid; mso-border-bottom-alt: solid windowtext .5pt"
valign="top" width="67">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">20</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"BORDER-RIGHT: medium none; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 0.7in; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1pt solid; mso-border-bottom-alt: solid windowtext .5pt"
valign="top" width="67">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">7</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow: 7">
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 3in; PADDING-TOP: 0in"
valign="top" width="288">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"BORDER-RIGHT: medium none; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 0.7in; PADDING-TOP: 0in; BORDER-BOTTOM: medium none; mso-border-top-alt: solid windowtext .5pt"
valign="top" width="67">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"BORDER-RIGHT: medium none; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 0.7in; PADDING-TOP: 0in; BORDER-BOTTOM: medium none; mso-border-top-alt: solid windowtext .5pt"
valign="top" width="67">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"BORDER-RIGHT: medium none; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 0.7in; PADDING-TOP: 0in; BORDER-BOTTOM: medium none; mso-border-top-alt: solid windowtext .5pt"
valign="top" width="67">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"BORDER-RIGHT: medium none; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 0.7in; PADDING-TOP: 0in; BORDER-BOTTOM: medium none; mso-border-top-alt: solid windowtext .5pt"
valign="top" width="67">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow: 8; mso-yfti-lastrow: yes">
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 3in; PADDING-TOP: 0in"
valign="top" width="288">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">Total
comprehensive income</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">$</span></span>
</p>
</td>
<td style=
"BORDER-RIGHT: medium none; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 0.7in; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1.5pt double"
valign="top" width="67">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">258</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">$</span></span>
</p>
</td>
<td style=
"BORDER-RIGHT: medium none; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 0.7in; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1.5pt double"
valign="top" width="67">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">456</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">$</span></span>
</p>
</td>
<td style=
"BORDER-RIGHT: medium none; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 0.7in; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1.5pt double"
valign="top" width="67">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">444</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">$</span></span>
</p>
</td>
<td style=
"BORDER-RIGHT: medium none; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 0.7in; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1.5pt double"
valign="top" width="67">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">751</span></span>
</p>
</td>
</tr>
</tbody>
</table>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">“Other comprehensive
income” in 2009 and 2008 reflects primarily, net of tax, the
amortization of the actuarial net losses and prior service
costs (benefits) for the pension and other postretirement
benefit plans and unrealized gains and losses on
available-for-sale securities.</span></span>
</p>
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397000000
199000000
414000000
207000000
63000000
75000000
149000000
136000000
6372000000
6446000000
402000000
418000000
<div>
<p class="MsoNormal">
<a name="_AUC3352bcd32e6e4476b178e22d505393f0"><b style=
"mso-bidi-font-weight: normal"><span style=
"FONT-SIZE: 11pt">1.<span style="mso-spacerun: yes">  </span>
Stock-based Compensation</span></b></a>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">In the first quarter of
2009, a committee of non-employee directors of Norfolk
Southern’s Board of Directors granted stock options,
restricted stock units and performance share units (PSUs)
pursuant to the Long-Term Incentive Plan (LTIP) and granted
stock options pursuant to the Thoroughbred Stock Option Plan
(TSOP) as discussed below.<span style=
"mso-spacerun: yes">  </span> Stock-based compensation was a
benefit of less than $1 million during the second quarter of
2009, compared with an expense of $30 million during the same
period of 2008.<span style="mso-spacerun: yes">  </span> For
the first six months of 2009 and 2008, stock-based
compensation expense was $15 million and $95 million,
respectively.<span style="mso-spacerun: yes">  </span> The
total tax effect recognized in income in relation to
stock-based compensation was an expense of $1 million and a
benefit of $10 million for the second quarters of June 30,
2009 and 2008, respectively, and benefits of $2 million and
$32 million for the first six months of 2009 and 2008,
respectively.</span></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
<p class="MsoNormal">
<span><b style="mso-bidi-font-weight: normal"><span style=
"FONT-SIZE: 11pt">Stock Options</span></b></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">In the first quarter of
2009, 1,209,700 options were granted under the LTIP and
251,200 options were granted under the TSOP.<span style=
"mso-spacerun: yes">  </span> In each case, the grant price
was $38.71, which was the average fair market value of
Norfolk Southern common stock (Common Stock) on the effective
date of the grant, and the options have a term of ten
years.<span style="mso-spacerun: yes">  </span> The options
granted under the LTIP and TSOP in 2009 may not be exercised
prior to the fourth and third anniversaries of the date of
grant, respectively.<span style="mso-spacerun: yes">  </span>
Holders of the options granted under the LTIP who remain
actively employed receive cash dividend equivalent payments
for four years in an amount equal to the regular quarterly
dividends paid on Common Stock.</span></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">The fair value of each
option award in 2009 was measured on the date of grant using
a lattice-based option valuation model.<span style=
"mso-spacerun: yes">  </span> Expected volatilities are based
on implied volatilities from traded options on Common Stock
and historical volatility of Common Stock.<span style=
"mso-spacerun: yes">  </span> NS uses historical data to
estimate option exercises and employee terminations within
the valuation model.<span style="mso-spacerun: yes">  </span>
The average expected option life is derived from the output
of the valuation model and represents the period of time that
options granted are expected to be outstanding.<span style=
"mso-spacerun: yes">  </span> The average risk-free interest
rate is based on the U.S. Treasury yield curve in effect at
the time of grant.<span style="mso-spacerun: yes">  </span>
For options granted that include dividend equivalent
payments, a dividend yield of zero was used.<span style=
"mso-spacerun: yes">  </span> The assumptions for the 2009
LTIP grant are shown in the following table:</span></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
<table class="MsoTableGrid" style=
"BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none; BORDER-COLLAPSE: collapse; mso-yfti-tbllook: 480; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-border-insideh: none; mso-border-insidev: none"
cellspacing="0" cellpadding="0" border="0">
<tbody>
<tr style="mso-yfti-irow: 0; mso-yfti-firstrow: yes">
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 203.4pt; PADDING-TOP: 0in"
valign="top" width="271">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1.5in; PADDING-TOP: 0in"
valign="top" width="144">
<p class="MsoNormal" style="TEXT-ALIGN: center" align=
"center">
<span><b style=
"mso-bidi-font-weight: normal"><u><span style=
"FONT-SIZE: 11pt">2009</span></u></b></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow: 1">
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 203.4pt; PADDING-TOP: 0in"
valign="top" width="271">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 9pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1.5in; PADDING-TOP: 0in"
valign="top" width="144">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 9pt">  </span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow: 2">
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 203.4pt; PADDING-TOP: 0in"
valign="top" width="271">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">Expected
volatility rate</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1.5in; PADDING-TOP: 0in"
valign="top" width="144">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">28% -
53%</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow: 3">
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 203.4pt; PADDING-TOP: 0in"
valign="top" width="271">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">Average expected
volatility</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1.5in; PADDING-TOP: 0in"
valign="top" width="144">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">43%</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow: 4">
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 203.4pt; PADDING-TOP: 0in"
valign="top" width="271">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">Average expected
option life</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1.5in; PADDING-TOP: 0in"
valign="top" width="144">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">6.5
years</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow: 5">
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 203.4pt; PADDING-TOP: 0in"
valign="top" width="271">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">Average risk-free
interest rate</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1.5in; PADDING-TOP: 0in"
valign="top" width="144">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style=
"FONT-SIZE: 11pt">2.87%</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow: 6; mso-yfti-lastrow: yes">
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 203.4pt; PADDING-TOP: 0in"
valign="top" width="271">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">Per-share
grant-date fair value</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1.5in; PADDING-TOP: 0in"
valign="top" width="144">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style=
"FONT-SIZE: 11pt">$18.18</span></span>
</p>
</td>
</tr>
</tbody>
</table>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">The grant-date fair value
of the 2009 TSOP grant was $15.41 using the same assumptions
as the 2009 LTIP grant, except the average expected option
life was 9.2 years and a dividend yield of 2.40% was used
because no dividend equivalent payments are made on these
options.</span></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">During the second quarter
of 2009, options relating to 556,942 shares were exercised,
yielding $17 million in cash proceeds and $1 million of tax
benefits recognized as additional paid-in
capital.<span style="mso-spacerun: yes">  </span> During the
second quarter of 2008, options relating to 2,833,764 shares
were exercised, yielding $65 million in cash proceeds and
$38 million of tax benefits recognized as additional paid-in
capital.</span></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">For the first six months
of 2009, options relating to 840,903 shares were exercised,
yielding $24 million of cash proceeds and $3 million of tax
benefits recognized as additional paid-in
capital.<span style="mso-spacerun: yes">  </span> For the
first six months of 2008, option exercises resulted in
$105 million of cash proceeds and $53 million of tax
benefits.</span></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
<p class="MsoNormal">
<span><b style="mso-bidi-font-weight: normal"><span style=
"FONT-SIZE: 11pt">Restricted Stock Units and Restricted
Shares</span></b></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">There were 319,550
restricted stock units granted in 2009, with an average
grant-date fair value of $38.71 and a five-year restriction
period.<span style="mso-spacerun: yes">  </span> The
restricted stock units granted in 2009 will be settled
through the issuance of shares of Common Stock.<span style=
"mso-spacerun: yes">  </span> There were no restricted shares
granted in 2009.</span></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">During the second quarter
of 2009, 29,782 restricted stock units were earned and paid
out in cash with a weighted-average fair value of
$33.89.<span style="mso-spacerun: yes">  </span> Also earned
and distributed were 44,673 restricted shares with a
weighted-average grant-date fair value of $34.10.<span style=
"mso-spacerun: yes">  </span> The total related tax benefit
recognized as additional paid-in capital was less than $1
million during the second quarter of 2009.</span></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">During the first six
months of 2009, 348,732 restricted stock units were earned
and paid out in cash with a weighted average fair value of
$36.28.<span style="mso-spacerun: yes">  </span> Also earned
and distributed were 363,623 restricted shares with a
weighted-average grant-date fair value of $47.70.<span style=
"mso-spacerun: yes">  </span> The total related tax expense
recognized as a reduction to additional paid in capital was
$1 million for the first six months of 2009.</span></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
<p class="MsoNormal">
<span><b style="mso-bidi-font-weight: normal"><span style=
"FONT-SIZE: 11pt">Performance Share Units</span></b></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">PSUs provide for awards
based on achievement of certain predetermined corporate
performance goals at the end of a three-year
cycle.<span style="mso-spacerun: yes">  </span> During the
first quarter of 2009, there were 1,209,700 PSUs granted with
a grant-date fair value of $38.71.<span style=
"mso-spacerun: yes">  </span> The PSUs granted in 2009 will
be paid in the form of shares; however, one-half of any
previously granted PSUs earned will be paid in the form of
shares of Common Stock, with the other half to be paid in
cash.</span></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">During the first six
months of 2009, 983,965 PSUs were earned and paid out,
one-half in shares of Common Stock, and one-half in
cash.<span style="mso-spacerun: yes">  </span> These PSUs had
a grant-date fair value of $49.43 per unit and a fair value
at pay out of $38.71 per unit.<span style=
"mso-spacerun: yes">  </span> The total related tax expense
recognized as a reduction to additional paid-in capital was
$2 million for the first six months of 2009.</span></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">For the first six months
of 2008, 1,013,999 PSUs were earned and paid out, one-half in
shares of Common Stock and one-half in cash.<span style=
"mso-spacerun: yes">  </span> These PSUs had a grant-date
fair value of $34.10 per unit and a fair value at pay out of
$50.47 per unit.<span style="mso-spacerun: yes">  </span> The
total related tax benefit recognized in additional paid-in
capital was $2 million in the first six months of
2008.</span></span>
</p>
<style>
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1.97
1.2
1.14
0.67
1.94
1.18
1.13
0.66
<div>
<p class="MsoNormal">
<a name="_AUC5a242379c7734d00a1d023e632122063"><b style=
"mso-bidi-font-weight: normal"><span style=
"FONT-SIZE: 11pt">3.<span style="mso-spacerun: yes">  </span>
Earnings Per Share</span></b></a>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">The following tables set
forth the calculations of basic and diluted earnings per
share:</span></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
<table class="MsoTableGrid" style=
"BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none; BORDER-COLLAPSE: collapse; mso-yfti-tbllook: 480; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-border-insideh: none; mso-border-insidev: none"
cellspacing="0" cellpadding="0" border="0">
<tbody>
<tr style="mso-yfti-irow: 0; mso-yfti-firstrow: yes">
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 3in; PADDING-TOP: 0in"
valign="top" width="288">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 2in; PADDING-TOP: 0in"
valign="top" width="192" colspan="4">
<p class="MsoNormal" style="TEXT-ALIGN: center" align=
"center">
<span><b style=
"mso-bidi-font-weight: normal"><span style=
"FONT-SIZE: 11pt">Three Months
Ended</span></b></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 2in; PADDING-TOP: 0in"
valign="top" width="192" colspan="4">
<p class="MsoNormal" style="TEXT-ALIGN: center" align=
"center">
<span><b style=
"mso-bidi-font-weight: normal"><span style=
"FONT-SIZE: 11pt">Six Months Ended</span></b></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow: 1">
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 3in; PADDING-TOP: 0in"
valign="top" width="288">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 2in; PADDING-TOP: 0in"
valign="top" width="192" colspan="4">
<p class="MsoNormal" style="TEXT-ALIGN: center" align=
"center">
<span><b style=
"mso-bidi-font-weight: normal"><span style=
"FONT-SIZE: 11pt">June 30,</span></b></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 2in; PADDING-TOP: 0in"
valign="top" width="192" colspan="4">
<p class="MsoNormal" style="TEXT-ALIGN: center" align=
"center">
<span><b style=
"mso-bidi-font-weight: normal"><span style=
"FONT-SIZE: 11pt">June 30,</span></b></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow: 2">
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 3in; PADDING-TOP: 0in"
valign="top" width="288">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1in; PADDING-TOP: 0in"
valign="top" width="96" colspan="2">
<p class="MsoNormal" style="TEXT-ALIGN: center" align=
"center">
<span><b style=
"mso-bidi-font-weight: normal"><u><span style=
"FONT-SIZE: 11pt">2009</span></u></b></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1in; PADDING-TOP: 0in"
valign="top" width="96" colspan="2">
<p class="MsoNormal" style="TEXT-ALIGN: center" align=
"center">
<span><b style=
"mso-bidi-font-weight: normal"><u><span style=
"FONT-SIZE: 11pt">2008</span></u></b></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1in; PADDING-TOP: 0in"
valign="top" width="96" colspan="2">
<p class="MsoNormal" style="TEXT-ALIGN: center" align=
"center">
<span><b style=
"mso-bidi-font-weight: normal"><u><span style=
"FONT-SIZE: 11pt">2009</span></u></b></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1in; PADDING-TOP: 0in"
valign="top" width="96" colspan="2">
<p class="MsoNormal" style="TEXT-ALIGN: center" align=
"center">
<span><b style=
"mso-bidi-font-weight: normal"><u><span style=
"FONT-SIZE: 11pt">2008</span></u></b></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow: 3">
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 3in; PADDING-TOP: 0in"
valign="top" width="288">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 4in; PADDING-TOP: 0in"
valign="top" width="384" colspan="8">
<p class="MsoNormal" style="TEXT-ALIGN: center" align=
"center">
<span><i style=
"mso-bidi-font-style: normal"><span style=
"FONT-SIZE: 11pt">($ in millions except per share,
shares in millions)</span></i></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow: 4">
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 3in; PADDING-TOP: 0in"
valign="top" width="288">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 9pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 9pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.7in; PADDING-TOP: 0in"
valign="top" width="67">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 9pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 9pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.7in; PADDING-TOP: 0in"
valign="top" width="67">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 9pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 9pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.7in; PADDING-TOP: 0in"
valign="top" width="67">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 9pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 9pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.7in; PADDING-TOP: 0in"
valign="top" width="67">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 9pt">  </span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow: 5">
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 3in; PADDING-TOP: 0in"
valign="top" width="288">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">Basic earnings
per share:</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.7in; PADDING-TOP: 0in"
valign="top" width="67">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.7in; PADDING-TOP: 0in"
valign="top" width="67">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.7in; PADDING-TOP: 0in"
valign="top" width="67">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.7in; PADDING-TOP: 0in"
valign="top" width="67">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow: 6">
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 3in; PADDING-TOP: 0in"
valign="top" width="288">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">   Income
available to common stockholders</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">$</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.7in; PADDING-TOP: 0in"
valign="top" width="67">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">245</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">$</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.7in; PADDING-TOP: 0in"
valign="top" width="67">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">451</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">$</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.7in; PADDING-TOP: 0in"
valign="top" width="67">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">420</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">$</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.7in; PADDING-TOP: 0in"
valign="top" width="67">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">740</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow: 7">
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 3in; PADDING-TOP: 0in"
valign="top" width="288">
<p class="MsoNormal">
<span><span style=
"FONT-SIZE: 11pt">   Weighted-average shares
outstanding</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"BORDER-RIGHT: medium none; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 0.7in; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1pt solid; mso-border-bottom-alt: solid windowtext .5pt"
valign="top" width="67">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style=
"FONT-SIZE: 11pt">366.8</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"BORDER-RIGHT: medium none; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 0.7in; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1pt solid; mso-border-bottom-alt: solid windowtext .5pt"
valign="top" width="67">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style=
"FONT-SIZE: 11pt">375.4</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"BORDER-RIGHT: medium none; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 0.7in; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1pt solid; mso-border-bottom-alt: solid windowtext .5pt"
valign="top" width="67">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style=
"FONT-SIZE: 11pt">366.5</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"BORDER-RIGHT: medium none; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 0.7in; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1pt solid; mso-border-bottom-alt: solid windowtext .5pt"
valign="top" width="67">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style=
"FONT-SIZE: 11pt">375.6</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow: 8">
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 3in; PADDING-TOP: 0in"
valign="top" width="288">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 9pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 9pt">  </span></span>
</p>
</td>
<td style=
"BORDER-RIGHT: medium none; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 0.7in; PADDING-TOP: 0in; BORDER-BOTTOM: medium none; mso-border-top-alt: solid windowtext .5pt"
valign="top" width="67">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 9pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 9pt">  </span></span>
</p>
</td>
<td style=
"BORDER-RIGHT: medium none; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 0.7in; PADDING-TOP: 0in; BORDER-BOTTOM: medium none; mso-border-top-alt: solid windowtext .5pt"
valign="top" width="67">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 9pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 9pt">  </span></span>
</p>
</td>
<td style=
"BORDER-RIGHT: medium none; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 0.7in; PADDING-TOP: 0in; BORDER-BOTTOM: medium none; mso-border-top-alt: solid windowtext .5pt"
valign="top" width="67">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 9pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 9pt">  </span></span>
</p>
</td>
<td style=
"BORDER-RIGHT: medium none; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 0.7in; PADDING-TOP: 0in; BORDER-BOTTOM: medium none; mso-border-top-alt: solid windowtext .5pt"
valign="top" width="67">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 9pt">  </span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow: 9; mso-yfti-lastrow: yes">
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 3in; PADDING-TOP: 0in"
valign="top" width="288">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">        Basic
earnings per share</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">$</span></span>
</p>
</td>
<td style=
"BORDER-RIGHT: medium none; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 0.7in; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1.5pt double"
valign="top" width="67">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style=
"FONT-SIZE: 11pt">0.67</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">$</span></span>
</p>
</td>
<td style=
"BORDER-RIGHT: medium none; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 0.7in; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1.5pt double"
valign="top" width="67">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style=
"FONT-SIZE: 11pt">1.20</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">$</span></span>
</p>
</td>
<td style=
"BORDER-RIGHT: medium none; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 0.7in; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1.5pt double"
valign="top" width="67">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style=
"FONT-SIZE: 11pt">1.14</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">$</span></span>
</p>
</td>
<td style=
"BORDER-RIGHT: medium none; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 0.7in; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1.5pt double"
valign="top" width="67">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style=
"FONT-SIZE: 11pt">1.97</span></span>
</p>
</td>
</tr>
</tbody>
</table>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">In the first quarter of
2009, NS adopted the provisions of the Financial Accounting
Standards Board Staff Position (FSP) EITF No. 03-6-1,
“Determining Whether Instruments Granted in Share-Based
Payment Transactions are Participating Securities,” which
requires the treatment of unvested stock options receiving
dividend equivalents as participating securities in computing
earnings per share under the two-class method.<span style=
"mso-spacerun: yes">  </span> NS has retrospectively applied
the provisions of this FSP and accordingly, income available
to common stockholders for the second quarter 2009 and 2008
reflects a $2 million reduction and for the first six months
of 2009 and 2008 a $4 million reduction from net income for
the effect of dividend equivalent payments made to holders of
stock options, which had the effect of reducing the
previously reported basic earnings per share for the six
months ended June 30, 2008, from $1.98 to
$1.97.</span></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
<table class="MsoTableGrid" style=
"BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none; BORDER-COLLAPSE: collapse; mso-yfti-tbllook: 480; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-border-insideh: none; mso-border-insidev: none; mso-table-layout-alt: fixed"
cellspacing="0" cellpadding="0" width="703" border="0">
<tbody>
<tr style="mso-yfti-irow: 0; mso-yfti-firstrow: yes">
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 3.2in; PADDING-TOP: 0in"
valign="top" width="307">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 153pt; PADDING-TOP: 0in"
valign="top" width="204" colspan="4">
<p class="MsoNormal" style="TEXT-ALIGN: center" align=
"center">
<span><b style=
"mso-bidi-font-weight: normal"><span style=
"FONT-SIZE: 11pt">Three Months
Ended</span></b></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 2in; PADDING-TOP: 0in"
valign="top" width="192" colspan="4">
<p class="MsoNormal" style="TEXT-ALIGN: center" align=
"center">
<span><b style=
"mso-bidi-font-weight: normal"><span style=
"FONT-SIZE: 11pt">Six Months Ended</span></b></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow: 1">
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 3.2in; PADDING-TOP: 0in"
valign="top" width="307">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 153pt; PADDING-TOP: 0in"
valign="top" width="204" colspan="4">
<p class="MsoNormal" style="TEXT-ALIGN: center" align=
"center">
<span><b style=
"mso-bidi-font-weight: normal"><span style=
"FONT-SIZE: 11pt">June 30,</span></b></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 2in; PADDING-TOP: 0in"
valign="top" width="192" colspan="4">
<p class="MsoNormal" style="TEXT-ALIGN: center" align=
"center">
<span><b style=
"mso-bidi-font-weight: normal"><span style=
"FONT-SIZE: 11pt">June 30,</span></b></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow: 2">
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 3.2in; PADDING-TOP: 0in"
valign="top" width="307">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 81pt; PADDING-TOP: 0in"
valign="top" width="108" colspan="2">
<p class="MsoNormal" style="TEXT-ALIGN: center" align=
"center">
<span><b style=
"mso-bidi-font-weight: normal"><u><span style=
"FONT-SIZE: 11pt">2009</span></u></b></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1in; PADDING-TOP: 0in"
valign="top" width="96" colspan="2">
<p class="MsoNormal" style="TEXT-ALIGN: center" align=
"center">
<span><b style=
"mso-bidi-font-weight: normal"><u><span style=
"FONT-SIZE: 11pt">2008</span></u></b></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1in; PADDING-TOP: 0in"
valign="top" width="96" colspan="2">
<p class="MsoNormal" style="TEXT-ALIGN: center" align=
"center">
<span><b style=
"mso-bidi-font-weight: normal"><u><span style=
"FONT-SIZE: 11pt">2009</span></u></b></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1in; PADDING-TOP: 0in"
valign="top" width="96" colspan="2">
<p class="MsoNormal" style="TEXT-ALIGN: center" align=
"center">
<span><b style=
"mso-bidi-font-weight: normal"><u><span style=
"FONT-SIZE: 11pt">2008</span></u></b></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow: 3">
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 3.2in; PADDING-TOP: 0in"
valign="top" width="307">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 297pt; PADDING-TOP: 0in"
valign="top" width="396" colspan="8">
<p class="MsoNormal" style="TEXT-ALIGN: center" align=
"center">
<span><i style=
"mso-bidi-font-style: normal"><span style=
"FONT-SIZE: 11pt">($ in millions except per share,
shares in millions)</span></i></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow: 4">
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 3.2in; PADDING-TOP: 0in"
valign="top" width="307">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 9pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 27pt; PADDING-TOP: 0in"
valign="top" width="36">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 9pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.75in; PADDING-TOP: 0in"
valign="top" width="72">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 9pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.25in; PADDING-TOP: 0in"
valign="top" width="24">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 9pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.75in; PADDING-TOP: 0in"
valign="top" width="72">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 9pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.25in; PADDING-TOP: 0in"
valign="top" width="24">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 9pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.75in; PADDING-TOP: 0in"
valign="top" width="72">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 9pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.25in; PADDING-TOP: 0in"
valign="top" width="24">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 9pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.75in; PADDING-TOP: 0in"
valign="top" width="72">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 9pt">  </span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow: 5">
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 3.2in; PADDING-TOP: 0in"
valign="top" width="307">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">Diluted earnings
per share:</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 27pt; PADDING-TOP: 0in"
valign="top" width="36">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.75in; PADDING-TOP: 0in"
valign="top" width="72">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.25in; PADDING-TOP: 0in"
valign="top" width="24">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.75in; PADDING-TOP: 0in"
valign="top" width="72">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.25in; PADDING-TOP: 0in"
valign="top" width="24">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.75in; PADDING-TOP: 0in"
valign="top" width="72">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.25in; PADDING-TOP: 0in"
valign="top" width="24">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.75in; PADDING-TOP: 0in"
valign="top" width="72">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow: 6">
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 3.2in; PADDING-TOP: 0in"
valign="top" width="307">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  Income
available to stockholders</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 27pt; PADDING-TOP: 0in"
valign="top" width="36">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">$</span></span>
</p>
</td>
<td style=
"BORDER-RIGHT: medium none; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 0.75in; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1pt solid; mso-border-bottom-alt: solid windowtext .5pt"
valign="top" width="72">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">245</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.25in; PADDING-TOP: 0in"
valign="top" width="24">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">$</span></span>
</p>
</td>
<td style=
"BORDER-RIGHT: medium none; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 0.75in; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1pt solid; mso-border-bottom-alt: solid windowtext .5pt"
valign="top" width="72">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">453</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.25in; PADDING-TOP: 0in"
valign="top" width="24">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">$</span></span>
</p>
</td>
<td style=
"BORDER-RIGHT: medium none; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 0.75in; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1pt solid; mso-border-bottom-alt: solid windowtext .5pt"
valign="top" width="72">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">420</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.25in; PADDING-TOP: 0in"
valign="top" width="24">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">$</span></span>
</p>
</td>
<td style=
"BORDER-RIGHT: medium none; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 0.75in; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1pt solid; mso-border-bottom-alt: solid windowtext .5pt"
valign="top" width="72">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">744</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow: 7">
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 3.2in; PADDING-TOP: 0in"
valign="top" width="307">
<p class="MsoNormal">
<span><span style=
"FONT-SIZE: 11pt">  Weighted-average shares
outstanding per above</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 27pt; PADDING-TOP: 0in"
valign="top" width="36">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"BORDER-RIGHT: medium none; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 0.75in; PADDING-TOP: 0in; BORDER-BOTTOM: medium none; mso-border-top-alt: solid windowtext .5pt"
valign="top" width="72">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style=
"FONT-SIZE: 11pt">366.8</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.25in; PADDING-TOP: 0in"
valign="top" width="24">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"BORDER-RIGHT: medium none; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 0.75in; PADDING-TOP: 0in; BORDER-BOTTOM: medium none; mso-border-top-alt: solid windowtext .5pt"
valign="top" width="72">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style=
"FONT-SIZE: 11pt">375.4</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.25in; PADDING-TOP: 0in"
valign="top" width="24">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"BORDER-RIGHT: medium none; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 0.75in; PADDING-TOP: 0in; BORDER-BOTTOM: medium none; mso-border-top-alt: solid windowtext .5pt"
valign="top" width="72">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style=
"FONT-SIZE: 11pt">366.5</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.25in; PADDING-TOP: 0in"
valign="top" width="24">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"BORDER-RIGHT: medium none; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 0.75in; PADDING-TOP: 0in; BORDER-BOTTOM: medium none; mso-border-top-alt: solid windowtext .5pt"
valign="top" width="72">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style=
"FONT-SIZE: 11pt">375.6</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow: 8">
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 3.2in; PADDING-TOP: 0in"
valign="top" width="307">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  Dilutive effect
of outstanding options and</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 27pt; PADDING-TOP: 0in"
valign="top" width="36">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.75in; PADDING-TOP: 0in"
valign="top" width="72">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.25in; PADDING-TOP: 0in"
valign="top" width="24">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.75in; PADDING-TOP: 0in"
valign="top" width="72">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.25in; PADDING-TOP: 0in"
valign="top" width="24">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.75in; PADDING-TOP: 0in"
valign="top" width="72">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.25in; PADDING-TOP: 0in"
valign="top" width="24">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.75in; PADDING-TOP: 0in"
valign="top" width="72">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow: 9">
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 3.2in; PADDING-TOP: 0in"
valign="top" width="307">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">    share-settled
awards (as determined by the</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 27pt; PADDING-TOP: 0in"
valign="top" width="36">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.75in; PADDING-TOP: 0in"
valign="top" width="72">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.25in; PADDING-TOP: 0in"
valign="top" width="24">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.75in; PADDING-TOP: 0in"
valign="top" width="72">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.25in; PADDING-TOP: 0in"
valign="top" width="24">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.75in; PADDING-TOP: 0in"
valign="top" width="72">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.25in; PADDING-TOP: 0in"
valign="top" width="24">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.75in; PADDING-TOP: 0in"
valign="top" width="72">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow: 10">
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 3.2in; PADDING-TOP: 0in"
valign="top" width="307">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">    application
of the two-class or treasury stock</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 27pt; PADDING-TOP: 0in"
valign="top" width="36">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.75in; PADDING-TOP: 0in"
valign="top" width="72">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.25in; PADDING-TOP: 0in"
valign="top" width="24">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.75in; PADDING-TOP: 0in"
valign="top" width="72">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.25in; PADDING-TOP: 0in"
valign="top" width="24">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.75in; PADDING-TOP: 0in"
valign="top" width="72">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.25in; PADDING-TOP: 0in"
valign="top" width="24">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.75in; PADDING-TOP: 0in"
valign="top" width="72">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow: 11">
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 3.2in; PADDING-TOP: 0in"
valign="top" width="307">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">    method, as
appropriate)</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 27pt; PADDING-TOP: 0in"
valign="top" width="36">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"BORDER-RIGHT: medium none; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 0.75in; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1pt solid; mso-border-bottom-alt: solid windowtext .5pt"
valign="top" width="72">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">4.6</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.25in; PADDING-TOP: 0in"
valign="top" width="24">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"BORDER-RIGHT: medium none; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 0.75in; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1pt solid; mso-border-bottom-alt: solid windowtext .5pt"
valign="top" width="72">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">8.1</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.25in; PADDING-TOP: 0in"
valign="top" width="24">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"BORDER-RIGHT: medium none; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 0.75in; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1pt solid; mso-border-bottom-alt: solid windowtext .5pt"
valign="top" width="72">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">4.8</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.25in; PADDING-TOP: 0in"
valign="top" width="24">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"BORDER-RIGHT: medium none; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 0.75in; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1pt solid; mso-border-bottom-alt: solid windowtext .5pt"
valign="top" width="72">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">8.1</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow: 12">
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 3.2in; PADDING-TOP: 0in"
valign="top" width="307">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  Adjusted
weighted-average shares outstanding</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 27pt; PADDING-TOP: 0in"
valign="top" width="36">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"BORDER-RIGHT: medium none; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 0.75in; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1pt solid; mso-border-bottom-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt"
valign="top" width="72">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style=
"FONT-SIZE: 11pt">371.4</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.25in; PADDING-TOP: 0in"
valign="top" width="24">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"BORDER-RIGHT: medium none; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 0.75in; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1pt solid; mso-border-bottom-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt"
valign="top" width="72">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style=
"FONT-SIZE: 11pt">383.5</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.25in; PADDING-TOP: 0in"
valign="top" width="24">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"BORDER-RIGHT: medium none; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 0.75in; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1pt solid; mso-border-bottom-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt"
valign="top" width="72">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style=
"FONT-SIZE: 11pt">371.3</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.25in; PADDING-TOP: 0in"
valign="top" width="24">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"BORDER-RIGHT: medium none; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 0.75in; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1pt solid; mso-border-bottom-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt"
valign="top" width="72">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style=
"FONT-SIZE: 11pt">383.7</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow: 13; mso-yfti-lastrow: yes">
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 3.2in; PADDING-TOP: 0in"
valign="top" width="307">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">          Diluted
earnings per share</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 27pt; PADDING-TOP: 0in"
valign="top" width="36">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">$</span></span>
</p>
</td>
<td style=
"BORDER-RIGHT: medium none; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 0.75in; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1.5pt double; mso-border-top-alt: solid windowtext .5pt"
valign="top" width="72">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style=
"FONT-SIZE: 11pt">0.66</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.25in; PADDING-TOP: 0in"
valign="top" width="24">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">$</span></span>
</p>
</td>
<td style=
"BORDER-RIGHT: medium none; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 0.75in; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1.5pt double; mso-border-top-alt: solid windowtext .5pt"
valign="top" width="72">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style=
"FONT-SIZE: 11pt">1.18</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.25in; PADDING-TOP: 0in"
valign="top" width="24">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">$</span></span>
</p>
</td>
<td style=
"BORDER-RIGHT: medium none; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 0.75in; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1.5pt double; mso-border-top-alt: solid windowtext .5pt"
valign="top" width="72">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style=
"FONT-SIZE: 11pt">1.13</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.25in; PADDING-TOP: 0in"
valign="top" width="24">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">$</span></span>
</p>
</td>
<td style=
"BORDER-RIGHT: medium none; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 0.75in; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1.5pt double; mso-border-top-alt: solid windowtext .5pt"
valign="top" width="72">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style=
"FONT-SIZE: 11pt">1.94</span></span>
</p>
</td>
</tr>
</tbody>
</table>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">As required under the
provisions of FSP EITF No. 03-6-1, diluted earnings per share
for the three and six months ended June 30, 2009, were
calculated under the more dilutive two-class method (as
compared to the treasury stock method) and accordingly,
income available to common stockholders for 2009 reflects a
$2 million and $4 million reduction, respectively, from net
income for dividend equivalent payments.<span style=
"mso-spacerun: yes">  </span> The diluted calculations
exclude options having exercise prices exceeding the average
market price of Common Stock as follows:<span style=
"mso-spacerun: yes">  </span> 5.6 million in 2009 and zero in
2008.</span></span>
</p>
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<p class="MsoNormal">
<a name="_AUCefb81d8b253749c2bb68cfbf2061adc0"><b style=
"mso-bidi-font-weight: normal"><span style=
"FONT-SIZE: 11pt">10.<span style=
"mso-spacerun: yes">  </span> Fair Value of Financial
Instruments</span></b></a>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">The fair values of “Cash
and cash equivalents,” “Accounts receivable” and “Accounts
payable” approximate carrying values because of the short
maturity of these financial instruments.<span style=
"mso-spacerun: yes">  </span> The carrying value of
corporate-owned life insurance is recorded at cash surrender
value and, accordingly, approximates fair value.<span style=
"mso-spacerun: yes">  </span> The carrying amounts and
estimated fair values for the remaining financial
instruments, excluding derivatives and investments accounted
for under the equity method in accordance with APB Opinion
No. 18, consisted of the following at June 30, 2009, and
December 31, 2008:</span></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
<table class="MsoTableGrid" style=
"BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none; BORDER-COLLAPSE: collapse; mso-yfti-tbllook: 480; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-border-insideh: none; mso-border-insidev: none"
cellspacing="0" cellpadding="0" border="0">
<tbody>
<tr style="mso-yfti-irow: 0; mso-yfti-firstrow: yes">
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1.7in; PADDING-TOP: 0in"
valign="top" width="163">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 2in; PADDING-TOP: 0in"
valign="top" width="192" colspan="4">
<p class="MsoNormal" style="TEXT-ALIGN: center" align=
"center">
<span><b style=
"mso-bidi-font-weight: normal"><span style=
"FONT-SIZE: 11pt">June 30, 2009</span></b></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 2in; PADDING-TOP: 0in"
valign="top" width="192" colspan="4">
<p class="MsoNormal" style="TEXT-ALIGN: center" align=
"center">
<span><b style=
"mso-bidi-font-weight: normal"><span style=
"FONT-SIZE: 11pt">December 31, 2008</span></b></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow: 1">
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1.7in; PADDING-TOP: 0in"
valign="top" width="163">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1in; PADDING-TOP: 0in"
valign="top" width="96" colspan="2">
<p class="MsoNormal" style="TEXT-ALIGN: center" align=
"center">
<span><b style=
"mso-bidi-font-weight: normal"><span style=
"FONT-SIZE: 11pt">Carrying</span></b></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1in; PADDING-TOP: 0in"
valign="top" width="96" colspan="2">
<p class="MsoNormal" style="TEXT-ALIGN: center" align=
"center">
<span><b style=
"mso-bidi-font-weight: normal"><span style=
"FONT-SIZE: 11pt">Fair</span></b></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1in; PADDING-TOP: 0in"
valign="top" width="96" colspan="2">
<p class="MsoNormal" style="TEXT-ALIGN: center" align=
"center">
<span><b style=
"mso-bidi-font-weight: normal"><span style=
"FONT-SIZE: 11pt">Carrying</span></b></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1in; PADDING-TOP: 0in"
valign="top" width="96" colspan="2">
<p class="MsoNormal" style="TEXT-ALIGN: center" align=
"center">
<span><b style=
"mso-bidi-font-weight: normal"><span style=
"FONT-SIZE: 11pt">Fair</span></b></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow: 2">
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1.7in; PADDING-TOP: 0in"
valign="top" width="163">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1in; PADDING-TOP: 0in"
valign="top" width="96" colspan="2">
<p class="MsoNormal" style="TEXT-ALIGN: center" align=
"center">
<span><b style=
"mso-bidi-font-weight: normal"><u><span style=
"FONT-SIZE: 11pt">Amount</span></u></b></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1in; PADDING-TOP: 0in"
valign="top" width="96" colspan="2">
<p class="MsoNormal" style="TEXT-ALIGN: center" align=
"center">
<span><b style=
"mso-bidi-font-weight: normal"><u><span style=
"FONT-SIZE: 11pt">Value</span></u></b></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1in; PADDING-TOP: 0in"
valign="top" width="96" colspan="2">
<p class="MsoNormal" style="TEXT-ALIGN: center" align=
"center">
<span><b style=
"mso-bidi-font-weight: normal"><u><span style=
"FONT-SIZE: 11pt">Amount</span></u></b></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1in; PADDING-TOP: 0in"
valign="top" width="96" colspan="2">
<p class="MsoNormal" style="TEXT-ALIGN: center" align=
"center">
<span><b style=
"mso-bidi-font-weight: normal"><u><span style=
"FONT-SIZE: 11pt">Value</span></u></b></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow: 3">
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1.7in; PADDING-TOP: 0in"
valign="top" width="163">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 4in; PADDING-TOP: 0in"
valign="top" width="384" colspan="8">
<p class="MsoNormal" style="TEXT-ALIGN: center" align=
"center">
<span><i style=
"mso-bidi-font-style: normal"><span style=
"FONT-SIZE: 11pt">($ in millions)</span></i></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow: 4">
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1.7in; PADDING-TOP: 0in"
valign="top" width="163">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.7in; PADDING-TOP: 0in"
valign="top" width="67">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.7in; PADDING-TOP: 0in"
valign="top" width="67">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.7in; PADDING-TOP: 0in"
valign="top" width="67">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.7in; PADDING-TOP: 0in"
valign="top" width="67">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow: 5">
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1.7in; PADDING-TOP: 0in"
valign="top" width="163">
<p class="MsoNormal">
<span><span style=
"FONT-SIZE: 11pt">Investments</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">$</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.7in; PADDING-TOP: 0in"
valign="top" width="67">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style=
"FONT-SIZE: 11pt">237 </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">$</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.7in; PADDING-TOP: 0in"
valign="top" width="67">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style=
"FONT-SIZE: 11pt">256 </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">$</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.7in; PADDING-TOP: 0in"
valign="top" width="67">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style=
"FONT-SIZE: 11pt">187 </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">$</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.7in; PADDING-TOP: 0in"
valign="top" width="67">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style=
"FONT-SIZE: 11pt">202 </span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow: 6; mso-yfti-lastrow: yes">
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1.7in; PADDING-TOP: 0in"
valign="top" width="163">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">Long-term
debt</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">$</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.7in; PADDING-TOP: 0in"
valign="top" width="67">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style=
"FONT-SIZE: 11pt">(7,082)</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">$</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.7in; PADDING-TOP: 0in"
valign="top" width="67">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style=
"FONT-SIZE: 11pt">(7,388)</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">$</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.7in; PADDING-TOP: 0in"
valign="top" width="67">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style=
"FONT-SIZE: 11pt">(6,667)</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">$</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.7in; PADDING-TOP: 0in"
valign="top" width="67">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style=
"FONT-SIZE: 11pt">(6,885)</span></span>
</p>
</td>
</tr>
</tbody>
</table>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">Underlying net assets
were used to estimate the fair value of
investments.<span style="mso-spacerun: yes">  </span> The
fair values of notes receivable are based on discounted
future cash flows.<span style="mso-spacerun: yes">  </span>
The fair values of debt were estimated based on quoted market
prices or discounted cash flows using current interest rates
for debt with similar terms, company rating and remaining
maturity.</span></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">Carrying amounts of
marketable securities reflect unrealized holding gains of
zero on June 30, 2009 and December 31, 2008.<span style=
"mso-spacerun: yes">  </span> Sales of “available-for-sale”
securities were immaterial for the quarter and six months
ended June 30, 2009 and 2008.</span></span>
</p>
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<p class="MsoNormal">
<a name="_AUC25fc10b9d2c5466ab4c8c6da87c7f17c"><b style=
"mso-bidi-font-weight: normal"><span style=
"FONT-SIZE: 11pt">2.<span style="mso-spacerun: yes">  </span>
Income Taxes</span></b></a>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">There have been no
material changes to the balance of unrecognized tax benefits
reported at December 31, 2008.<span style=
"mso-spacerun: yes">  </span> NS anticipates that the IRS
will complete its examination of NS’ 2006 and 2007 federal
income tax returns by the end of 2009.</span></span>
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<p class="MsoNormal">
<a name="_AUCb4344fe4963c4874b84f5f3b810aaead"><b style=
"mso-bidi-font-weight: normal"><span style=
"FONT-SIZE: 11pt">6.<span style="mso-spacerun: yes">  </span>
Investments</span></b></a>
</p>
<p class="MsoNormal">
<span><b style="mso-bidi-font-weight: normal"><span style=
"FONT-SIZE: 11pt">  </span></b></span>
</p>
<p class="MsoNormal">
<span><b style="mso-bidi-font-weight: normal"><span style=
"FONT-SIZE: 11pt">Investment in Conrail,
Inc.</span></b></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">Through a limited
liability company, Norfolk Southern and CSX Corporation (CSX)
jointly own Conrail Inc. (Conrail), whose primary subsidiary
is Consolidated Rail Corporation (CRC).<span style=
"mso-spacerun: yes">  </span> NS has a 58% economic and 50%
voting interest in the jointly owned entity, and CSX has the
remainder of the economic and voting interests.<span style=
"mso-spacerun: yes">  </span> NS’ investment in Conrail was
$885 million at June 30, 2009, and $868 million at December
31, 2008.</span></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">CRC owns and operates
certain properties (the Shared Assets Areas) for the joint
and exclusive benefit of Norfolk Southern Railway Company
(NSR) and CSX Transportation, Inc. (CSXT).<span style=
"mso-spacerun: yes">  </span> The costs of operating the
Shared Assets Areas are borne by NSR and CSXT based on
usage.<span style="mso-spacerun: yes">  </span> In addition,
NSR and CSXT pay CRC a fee for access to the Shared Assets
Areas.<span style="mso-spacerun: yes">  </span> “Purchased
services and rents” and “Fuel” include expenses for the use
of the Shared Assets Areas totaling $29 million and
$32 million in the second quarters of 2009 and 2008,
respectively, and $60 million and $64 million, for the first
six months of 2009 and 2008, respectively.<span style=
"mso-spacerun: yes">  </span> NS’ equity in earnings of
Conrail, net of amortization, included in “Other income –
net” was $8 million and $7 million in the second quarters of
2009 and 2008, respectively, and $17 million and $15 million
for the first six months of 2009 and 2008,
respectively.</span></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">“Accounts payable”
includes $85 million at June 30, 2009, and $82 million at
December 31, 2008, due to Conrail for the operation of the
Shared Assets Areas.<span style="mso-spacerun: yes">  </span>
In addition, “Other liabilities” includes $133 million at
both June 30, 2009, and December 31, 2008, for long-term
advances from Conrail, maturing 2035, that bear interest at
an average rate of 4.4%.</span></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
<p class="MsoNormal">
<span><b style="mso-bidi-font-weight: normal"><span style=
"FONT-SIZE: 11pt">Investment in Pan Am Southern
LLC</span></b></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
<p class="MsoNormal" style="MARGIN-RIGHT: -9pt">
<span><span style="FONT-SIZE: 11pt">During the second
quarter, NS and Pan Am Railways, Inc. (Pan Am) formed a joint
venture, Pan Am Southern LLC (PAS), a railroad company in
which each has a 50% equity interest.<span style=
"mso-spacerun: yes">  </span> Pan Am contributed to PAS a
155-mile main line track that runs between Mechanicville, New
York and Ayer, Massachusetts, along with 281 miles of
secondary and branch lines, including trackage rights in New
York, Connecticut, Massachusetts, New Hampshire, and Vermont
(collectively, the “PAS Lines”), and NS contributed cash and
other property with a combined value of approximately
$60 million (of which $55 million was contributed during the
second quarter) and has committed to contribute an additional
$80 million in cash and other property over the next three
years, $75 million of which is evidenced by notes payable to
PAS.<span style="mso-spacerun: yes">  </span> A significant
portion of NS’ contributions will be used for capital
improvements to the PAS Lines and the related construction of
new intermodal and automotive terminals in the Albany, New
York and the Ayer, Massachusetts areas.<span style=
"mso-spacerun: yes">  </span> PAS is jointly controlled by NS
and Pan Am, accordingly NS will account for its interest in
PAS using the equity method of accounting.</span></span>
</p>
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<div>
<p class="MsoNormal">
<a name="_AUCa82caaa918ca4eb08ff66dfac9c84150"><b style=
"mso-bidi-font-weight: normal"><span style=
"FONT-SIZE: 11pt">7.<span style="mso-spacerun: yes">  </span>
Long-term Debt</span></b></a>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
<p class="MsoNormal" style="MARGIN-RIGHT: -9pt">
<span><span style="FONT-SIZE: 11pt">In the first six months
of 2009, NS repaid $200 million under its accounts receivable
securitization facility.<span style=
"mso-spacerun: yes">  </span> At June 30, 2009, and
December 31, 2008, the amounts outstanding under the facility
were $100 million (at an average variable interest rate of
1.57%) and $300 million (at an average variable interest rate
of 3.01%), respectively.</span></span>
</p>
<p class="MsoNormal" style="MARGIN-RIGHT: -9pt">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">During the second quarter
of 2009, NS issued $500 million of unsecured notes at 5.90%
due 2019 pursuant to its automatic shelf registration
statement described below.<span style=
"mso-spacerun: yes">  </span> The net proceeds from the
offering were $496 million after deducting the purchase
discount and expenses.<span style=
"mso-spacerun: yes">  </span> NS also issued a total of
$75 million in non-interest bearing notes payable with
maturity dates beginning in 2010 and ending in 2012 as part
of its total investment in Pan Am Southern LLC.</span></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
<p class="MsoNormal" style="MARGIN-RIGHT: -9pt">
<span><span style="FONT-SIZE: 11pt">During the first quarter
of 2009, NS issued $500 million of unsecured notes at 5.75%
due 2016 in a private offering.<span style=
"mso-spacerun: yes">  </span> The net proceeds from the
offering were approximately $494 million after deducting the
purchase discount and expenses.<span style=
"mso-spacerun: yes">  </span> NS agreed to exchange these
unregistered securities with essentially identical securities
registered under the Securities Act of 1933.</span></span>
</p>
<p class="MsoNormal" style="MARGIN-RIGHT: -9pt">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">NS has authority from its
board of directors to issue an additional $500 million of
debt or equity securities through public or private
sale.<span style="mso-spacerun: yes">  </span> During the
first quarter of 2009, NS filed a Form S-3 automatic shelf
registration statement for well-known seasoned issuers under
which, as of June 30, 2009, up to $500 million could be
issued under this authority.</span></span>
</p>
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851000000
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168000000
90000000
272000000
295000000
220000000
240000000
2030000000
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46000000
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251000000
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-218000000
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-34000000
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<div>
<p class="MsoNormal">
<a name="_AUC34daf3f3247845ea97e94a69ada10850"><b style=
"mso-bidi-font-weight: normal"><span style=
"FONT-SIZE: 11pt">8.<span style="mso-spacerun: yes">  </span>
Pensions and Other Postretirement Benefits</span></b></a>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
<p class="MsoNormal" style="MARGIN-RIGHT: -9pt">
<span><span style="FONT-SIZE: 11pt">Norfolk Southern and
certain subsidiaries have both funded and unfunded defined
benefit pension plans covering principally salaried
employees.<span style="mso-spacerun: yes">  </span> Norfolk
Southern and certain subsidiaries also provide specified
health care and death benefits to eligible retired employees
and their dependents.<span style=
"mso-spacerun: yes">  </span> Under the present plans, which
may be amended or terminated at NS’ option, a defined
percentage of health care expenses is covered, reduced by any
deductibles, co-payments, Medicare payments and, in some
cases, coverage provided under other group insurance
policies.</span></span>
</p>
<p class="MsoNormal" style="MARGIN-RIGHT: -9pt">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
<p class="MsoNormal" style="MARGIN-RIGHT: -9pt">
<span><u><span style="FONT-SIZE: 11pt">Pension and Other
Postretirement Benefit Cost Components</span></u></span>
</p>
<p class="MsoNormal" style="MARGIN-RIGHT: -9pt">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
<table class="MsoTableGrid" style=
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cellspacing="0" cellpadding="0" width="696" border="0">
<tbody>
<tr style="mso-yfti-irow: 0; mso-yfti-firstrow: yes">
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 3.25in; PADDING-TOP: 0in"
valign="top" width="312">
<p class="MsoNormal" style="MARGIN-RIGHT: -9pt">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 4in; PADDING-TOP: 0in"
valign="top" width="384" colspan="8">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -9pt; TEXT-ALIGN: center" align=
"center">
<span><b style=
"mso-bidi-font-weight: normal"><span style=
"FONT-SIZE: 11pt">Three months ended June
30,</span></b></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow: 1">
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 3.25in; PADDING-TOP: 0in"
valign="top" width="312">
<p class="MsoNormal" style="MARGIN-RIGHT: -9pt">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1in; PADDING-TOP: 0in"
valign="top" width="96" colspan="2">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -9pt; TEXT-ALIGN: center" align=
"center">
<span><b style=
"mso-bidi-font-weight: normal"><u><span style=
"FONT-SIZE: 11pt">2009</span></u></b></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1in; PADDING-TOP: 0in"
valign="top" width="96" colspan="2">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -9pt; TEXT-ALIGN: center" align=
"center">
<span><b style=
"mso-bidi-font-weight: normal"><u><span style=
"FONT-SIZE: 11pt">2008</span></u></b></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1in; PADDING-TOP: 0in"
valign="top" width="96" colspan="2">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -9pt; TEXT-ALIGN: center" align=
"center">
<span><b style=
"mso-bidi-font-weight: normal"><u><span style=
"FONT-SIZE: 11pt">2009</span></u></b></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1in; PADDING-TOP: 0in"
valign="top" width="96" colspan="2">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -9pt; TEXT-ALIGN: center" align=
"center">
<span><b style=
"mso-bidi-font-weight: normal"><u><span style=
"FONT-SIZE: 11pt">2008</span></u></b></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow: 2">
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 3.25in; PADDING-TOP: 0in"
valign="top" width="312">
<p class="MsoNormal" style="MARGIN-RIGHT: -9pt">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 2in; PADDING-TOP: 0in"
valign="top" width="192" colspan="4">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -9pt; TEXT-ALIGN: center" align=
"center">
<span><b style=
"mso-bidi-font-weight: normal"><u><span style=
"FONT-SIZE: 11pt">Pension
Benefits</span></u></b></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 2in; PADDING-TOP: 0in"
valign="top" width="192" colspan="4">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -9pt; TEXT-ALIGN: center" align=
"center">
<span><b style=
"mso-bidi-font-weight: normal"><u><span style=
"FONT-SIZE: 11pt">Other
Benefits</span></u></b></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow: 3">
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 3.25in; PADDING-TOP: 0in"
valign="top" width="312">
<p class="MsoNormal" style="MARGIN-RIGHT: -9pt">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 4in; PADDING-TOP: 0in"
valign="top" width="384" colspan="8">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -9pt; TEXT-ALIGN: center" align=
"center">
<span><i style=
"mso-bidi-font-style: normal"><span style=
"FONT-SIZE: 11pt">($ in millions)</span></i></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow: 4">
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 3.25in; PADDING-TOP: 0in"
valign="top" width="312">
<p class="MsoNormal" style="MARGIN-RIGHT: -9pt">
<span><span style="FONT-SIZE: 9pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style="MARGIN-RIGHT: -9pt">
<span><span style="FONT-SIZE: 9pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.7in; PADDING-TOP: 0in"
valign="top" width="67">
<p class="MsoNormal" style="MARGIN-RIGHT: -9pt">
<span><span style="FONT-SIZE: 9pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style="MARGIN-RIGHT: -9pt">
<span><span style="FONT-SIZE: 9pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.7in; PADDING-TOP: 0in"
valign="top" width="67">
<p class="MsoNormal" style="MARGIN-RIGHT: -9pt">
<span><span style="FONT-SIZE: 9pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style="MARGIN-RIGHT: -9pt">
<span><span style="FONT-SIZE: 9pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.7in; PADDING-TOP: 0in"
valign="top" width="67">
<p class="MsoNormal" style="MARGIN-RIGHT: -9pt">
<span><span style="FONT-SIZE: 9pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style="MARGIN-RIGHT: -9pt">
<span><span style="FONT-SIZE: 9pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.7in; PADDING-TOP: 0in"
valign="top" width="67">
<p class="MsoNormal" style="MARGIN-RIGHT: -9pt">
<span><span style="FONT-SIZE: 9pt">  </span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow: 5">
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 3.25in; PADDING-TOP: 0in"
valign="top" width="312">
<p class="MsoNormal" style="MARGIN-RIGHT: -9pt">
<span><span style="FONT-SIZE: 11pt">Service
cost</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -9pt; TEXT-ALIGN: right" align="right">
<span><span style=
"FONT-SIZE: 11pt">$   </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.7in; PADDING-TOP: 0in"
valign="top" width="67">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -1.8pt; TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">6 </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -9pt; TEXT-ALIGN: right" align="right">
<span><span style=
"FONT-SIZE: 11pt">$   </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.7in; PADDING-TOP: 0in"
valign="top" width="67">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -1.8pt; TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">6 </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -9pt; TEXT-ALIGN: right" align="right">
<span><span style=
"FONT-SIZE: 11pt">$   </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.7in; PADDING-TOP: 0in"
valign="top" width="67">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -1.8pt; TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">3 </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -9pt; TEXT-ALIGN: right" align="right">
<span><span style=
"FONT-SIZE: 11pt">$   </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.7in; PADDING-TOP: 0in"
valign="top" width="67">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -1.8pt; TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">2 </span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow: 6">
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 3.25in; PADDING-TOP: 0in"
valign="top" width="312">
<p class="MsoNormal" style="MARGIN-RIGHT: -9pt">
<span><span style="FONT-SIZE: 11pt">Interest
cost</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -9pt; TEXT-ALIGN: right" align="right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.7in; PADDING-TOP: 0in"
valign="top" width="67">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -1.8pt; TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">25 </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -9pt; TEXT-ALIGN: right" align="right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.7in; PADDING-TOP: 0in"
valign="top" width="67">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -1.8pt; TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">25 </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -9pt; TEXT-ALIGN: right" align="right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.7in; PADDING-TOP: 0in"
valign="top" width="67">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -1.8pt; TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">14 </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -9pt; TEXT-ALIGN: right" align="right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.7in; PADDING-TOP: 0in"
valign="top" width="67">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -1.8pt; TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">13 </span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow: 7">
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 3.25in; PADDING-TOP: 0in"
valign="top" width="312">
<p class="MsoNormal" style="MARGIN-RIGHT: -9pt">
<span><span style="FONT-SIZE: 11pt">Expected return
on plan assets</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -9pt; TEXT-ALIGN: right" align="right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.7in; PADDING-TOP: 0in"
valign="top" width="67">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -1.8pt; TEXT-ALIGN: right" align=
"right">
<span><span style=
"FONT-SIZE: 11pt">(38)</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -9pt; TEXT-ALIGN: right" align="right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.7in; PADDING-TOP: 0in"
valign="top" width="67">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -1.8pt; TEXT-ALIGN: right" align=
"right">
<span><span style=
"FONT-SIZE: 11pt">(43)</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -9pt; TEXT-ALIGN: right" align="right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.7in; PADDING-TOP: 0in"
valign="top" width="67">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -1.8pt; TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">(3)</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -9pt; TEXT-ALIGN: right" align="right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.7in; PADDING-TOP: 0in"
valign="top" width="67">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -1.8pt; TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">(5)</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow: 8">
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 3.25in; PADDING-TOP: 0in"
valign="top" width="312">
<p class="MsoNormal" style="MARGIN-RIGHT: -9pt">
<span><span style="FONT-SIZE: 11pt">Amortization of
prior service cost (benefit)</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -9pt; TEXT-ALIGN: right" align="right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.7in; PADDING-TOP: 0in"
valign="top" width="67">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -1.8pt; TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">1 </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -9pt; TEXT-ALIGN: right" align="right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.7in; PADDING-TOP: 0in"
valign="top" width="67">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -1.8pt; TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">1 </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -9pt; TEXT-ALIGN: right" align="right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.7in; PADDING-TOP: 0in"
valign="top" width="67">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -1.8pt; TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">(1)</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -9pt; TEXT-ALIGN: right" align="right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.7in; PADDING-TOP: 0in"
valign="top" width="67">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -1.8pt; TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">(3)</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow: 9">
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 3.25in; PADDING-TOP: 0in"
valign="top" width="312">
<p class="MsoNormal" style="MARGIN-RIGHT: -9pt">
<span><span style="FONT-SIZE: 11pt">Amortization of
net losses</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -9pt; TEXT-ALIGN: right" align="right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"BORDER-RIGHT: medium none; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 0.7in; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1pt solid; mso-border-bottom-alt: solid windowtext .5pt"
valign="top" width="67">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -1.8pt; TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">7 </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -9pt; TEXT-ALIGN: right" align="right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"BORDER-RIGHT: medium none; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 0.7in; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1pt solid; mso-border-bottom-alt: solid windowtext .5pt"
valign="top" width="67">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -1.8pt; TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">2 </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -9pt; TEXT-ALIGN: right" align="right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"BORDER-RIGHT: medium none; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 0.7in; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1pt solid; mso-border-bottom-alt: solid windowtext .5pt"
valign="top" width="67">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -1.8pt; TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">10 </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -9pt; TEXT-ALIGN: right" align="right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"BORDER-RIGHT: medium none; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 0.7in; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1pt solid; mso-border-bottom-alt: solid windowtext .5pt"
valign="top" width="67">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -1.8pt; TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">6 </span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow: 10; mso-yfti-lastrow: yes">
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 3.25in; PADDING-TOP: 0in"
valign="top" width="312">
<p class="MsoNormal" style="MARGIN-RIGHT: -9pt">
<span><span style="FONT-SIZE: 11pt">   Net (benefit)
cost</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -9pt; TEXT-ALIGN: right" align="right">
<span><span style=
"FONT-SIZE: 11pt">$   </span></span>
</p>
</td>
<td style=
"BORDER-RIGHT: medium none; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 0.7in; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1.5pt double; mso-border-top-alt: solid windowtext .5pt"
valign="top" width="67">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -1.8pt; TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">1 </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -9pt; TEXT-ALIGN: right" align="right">
<span><span style=
"FONT-SIZE: 11pt">$   </span></span>
</p>
</td>
<td style=
"BORDER-RIGHT: medium none; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 0.7in; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1.5pt double; mso-border-top-alt: solid windowtext .5pt"
valign="top" width="67">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -1.8pt; TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">(9)</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -9pt; TEXT-ALIGN: right" align="right">
<span><span style=
"FONT-SIZE: 11pt">$   </span></span>
</p>
</td>
<td style=
"BORDER-RIGHT: medium none; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 0.7in; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1.5pt double; mso-border-top-alt: solid windowtext .5pt"
valign="top" width="67">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -1.8pt; TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">23 </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -9pt; TEXT-ALIGN: right" align="right">
<span><span style=
"FONT-SIZE: 11pt">$   </span></span>
</p>
</td>
<td style=
"BORDER-RIGHT: medium none; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 0.7in; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1.5pt double; mso-border-top-alt: solid windowtext .5pt"
valign="top" width="67">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -1.8pt; TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">13 </span></span>
</p>
</td>
</tr>
</tbody>
</table>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
<table class="MsoTableGrid" style=
"BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none; BORDER-COLLAPSE: collapse; mso-table-layout-alt: fixed; mso-yfti-tbllook: 480; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-border-insideh: none; mso-border-insidev: none"
cellspacing="0" cellpadding="0" width="696" border="0">
<tbody>
<tr style="mso-yfti-irow: 0; mso-yfti-firstrow: yes">
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 3.25in; PADDING-TOP: 0in"
valign="top" width="312">
<p class="MsoNormal" style="MARGIN-RIGHT: -9pt">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 4in; PADDING-TOP: 0in"
valign="top" width="384" colspan="8">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -9pt; TEXT-ALIGN: center" align=
"center">
<span><b style=
"mso-bidi-font-weight: normal"><span style=
"FONT-SIZE: 11pt">Six months ended June
30,</span></b></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow: 1">
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 3.25in; PADDING-TOP: 0in"
valign="top" width="312">
<p class="MsoNormal" style="MARGIN-RIGHT: -9pt">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1in; PADDING-TOP: 0in"
valign="top" width="96" colspan="2">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -9pt; TEXT-ALIGN: center" align=
"center">
<span><b style=
"mso-bidi-font-weight: normal"><u><span style=
"FONT-SIZE: 11pt">2009</span></u></b></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1in; PADDING-TOP: 0in"
valign="top" width="96" colspan="2">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -9pt; TEXT-ALIGN: center" align=
"center">
<span><b style=
"mso-bidi-font-weight: normal"><u><span style=
"FONT-SIZE: 11pt">2008</span></u></b></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1in; PADDING-TOP: 0in"
valign="top" width="96" colspan="2">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -9pt; TEXT-ALIGN: center" align=
"center">
<span><b style=
"mso-bidi-font-weight: normal"><u><span style=
"FONT-SIZE: 11pt">2009</span></u></b></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1in; PADDING-TOP: 0in"
valign="top" width="96" colspan="2">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -9pt; TEXT-ALIGN: center" align=
"center">
<span><b style=
"mso-bidi-font-weight: normal"><u><span style=
"FONT-SIZE: 11pt">2008</span></u></b></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow: 2">
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 3.25in; PADDING-TOP: 0in"
valign="top" width="312">
<p class="MsoNormal" style="MARGIN-RIGHT: -9pt">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 2in; PADDING-TOP: 0in"
valign="top" width="192" colspan="4">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -9pt; TEXT-ALIGN: center" align=
"center">
<span><b style=
"mso-bidi-font-weight: normal"><u><span style=
"FONT-SIZE: 11pt">Pension
Benefits</span></u></b></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 2in; PADDING-TOP: 0in"
valign="top" width="192" colspan="4">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -9pt; TEXT-ALIGN: center" align=
"center">
<span><b style=
"mso-bidi-font-weight: normal"><u><span style=
"FONT-SIZE: 11pt">Other
Benefits</span></u></b></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow: 3">
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 3.25in; PADDING-TOP: 0in"
valign="top" width="312">
<p class="MsoNormal" style="MARGIN-RIGHT: -9pt">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 4in; PADDING-TOP: 0in"
valign="top" width="384" colspan="8">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -9pt; TEXT-ALIGN: center" align=
"center">
<span><i style=
"mso-bidi-font-style: normal"><span style=
"FONT-SIZE: 11pt">($ in millions)</span></i></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow: 4">
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 3.25in; PADDING-TOP: 0in"
valign="top" width="312">
<p class="MsoNormal" style="MARGIN-RIGHT: -9pt">
<span><span style="FONT-SIZE: 9pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style="MARGIN-RIGHT: -9pt">
<span><span style="FONT-SIZE: 9pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.7in; PADDING-TOP: 0in"
valign="top" width="67">
<p class="MsoNormal" style="MARGIN-RIGHT: -9pt">
<span><span style="FONT-SIZE: 9pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style="MARGIN-RIGHT: -9pt">
<span><span style="FONT-SIZE: 9pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.7in; PADDING-TOP: 0in"
valign="top" width="67">
<p class="MsoNormal" style="MARGIN-RIGHT: -9pt">
<span><span style="FONT-SIZE: 9pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style="MARGIN-RIGHT: -9pt">
<span><span style="FONT-SIZE: 9pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.7in; PADDING-TOP: 0in"
valign="top" width="67">
<p class="MsoNormal" style="MARGIN-RIGHT: -9pt">
<span><span style="FONT-SIZE: 9pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style="MARGIN-RIGHT: -9pt">
<span><span style="FONT-SIZE: 9pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.7in; PADDING-TOP: 0in"
valign="top" width="67">
<p class="MsoNormal" style="MARGIN-RIGHT: -9pt">
<span><span style="FONT-SIZE: 9pt">  </span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow: 5">
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 3.25in; PADDING-TOP: 0in"
valign="top" width="312">
<p class="MsoNormal" style="MARGIN-RIGHT: -9pt">
<span><span style="FONT-SIZE: 11pt">Service
cost</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -9pt; TEXT-ALIGN: right" align="right">
<span><span style=
"FONT-SIZE: 11pt">$   </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.7in; PADDING-TOP: 0in"
valign="top" width="67">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -1.8pt; TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">13 </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -9pt; TEXT-ALIGN: right" align="right">
<span><span style=
"FONT-SIZE: 11pt">$   </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.7in; PADDING-TOP: 0in"
valign="top" width="67">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -1.8pt; TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">12 </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -9pt; TEXT-ALIGN: right" align="right">
<span><span style=
"FONT-SIZE: 11pt">$   </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.7in; PADDING-TOP: 0in"
valign="top" width="67">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -1.8pt; TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">8 </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -9pt; TEXT-ALIGN: right" align="right">
<span><span style=
"FONT-SIZE: 11pt">$   </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.7in; PADDING-TOP: 0in"
valign="top" width="67">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -1.8pt; TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">8 </span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow: 6">
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 3.25in; PADDING-TOP: 0in"
valign="top" width="312">
<p class="MsoNormal" style="MARGIN-RIGHT: -9pt">
<span><span style="FONT-SIZE: 11pt">Interest
cost</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -9pt; TEXT-ALIGN: right" align="right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.7in; PADDING-TOP: 0in"
valign="top" width="67">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -1.8pt; TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">50 </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -9pt; TEXT-ALIGN: right" align="right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.7in; PADDING-TOP: 0in"
valign="top" width="67">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -1.8pt; TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">50 </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -9pt; TEXT-ALIGN: right" align="right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.7in; PADDING-TOP: 0in"
valign="top" width="67">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -1.8pt; TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">28 </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -9pt; TEXT-ALIGN: right" align="right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.7in; PADDING-TOP: 0in"
valign="top" width="67">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -1.8pt; TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">25 </span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow: 7">
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 3.25in; PADDING-TOP: 0in"
valign="top" width="312">
<p class="MsoNormal" style="MARGIN-RIGHT: -9pt">
<span><span style="FONT-SIZE: 11pt">Expected return
on plan assets</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -9pt; TEXT-ALIGN: right" align="right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.7in; PADDING-TOP: 0in"
valign="top" width="67">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -1.8pt; TEXT-ALIGN: right" align=
"right">
<span><span style=
"FONT-SIZE: 11pt">(77)</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -9pt; TEXT-ALIGN: right" align="right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.7in; PADDING-TOP: 0in"
valign="top" width="67">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -1.8pt; TEXT-ALIGN: right" align=
"right">
<span><span style=
"FONT-SIZE: 11pt">(86)</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -9pt; TEXT-ALIGN: right" align="right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.7in; PADDING-TOP: 0in"
valign="top" width="67">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -1.8pt; TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">(7)</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -9pt; TEXT-ALIGN: right" align="right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.7in; PADDING-TOP: 0in"
valign="top" width="67">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -1.8pt; TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">(7)</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow: 8">
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 3.25in; PADDING-TOP: 0in"
valign="top" width="312">
<p class="MsoNormal" style="MARGIN-RIGHT: -9pt">
<span><span style="FONT-SIZE: 11pt">Amortization of
prior service cost (benefit)</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -9pt; TEXT-ALIGN: right" align="right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.7in; PADDING-TOP: 0in"
valign="top" width="67">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -1.8pt; TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">2 </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -9pt; TEXT-ALIGN: right" align="right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.7in; PADDING-TOP: 0in"
valign="top" width="67">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -1.8pt; TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">1 </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -9pt; TEXT-ALIGN: right" align="right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.7in; PADDING-TOP: 0in"
valign="top" width="67">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -1.8pt; TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">(1)</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -9pt; TEXT-ALIGN: right" align="right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.7in; PADDING-TOP: 0in"
valign="top" width="67">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -1.8pt; TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">(5)</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow: 9">
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 3.25in; PADDING-TOP: 0in"
valign="top" width="312">
<p class="MsoNormal" style="MARGIN-RIGHT: -9pt">
<span><span style="FONT-SIZE: 11pt">Amortization of
net losses</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -9pt; TEXT-ALIGN: right" align="right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"BORDER-RIGHT: medium none; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 0.7in; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1pt solid; mso-border-bottom-alt: solid windowtext .5pt"
valign="top" width="67">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -1.8pt; TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">13 </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -9pt; TEXT-ALIGN: right" align="right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"BORDER-RIGHT: medium none; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 0.7in; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1pt solid; mso-border-bottom-alt: solid windowtext .5pt"
valign="top" width="67">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -1.8pt; TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">4 </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -9pt; TEXT-ALIGN: right" align="right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"BORDER-RIGHT: medium none; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 0.7in; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1pt solid; mso-border-bottom-alt: solid windowtext .5pt"
valign="top" width="67">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -1.8pt; TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">18 </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -9pt; TEXT-ALIGN: right" align="right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"BORDER-RIGHT: medium none; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 0.7in; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1pt solid; mso-border-bottom-alt: solid windowtext .5pt"
valign="top" width="67">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -1.8pt; TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">13 </span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow: 10; mso-yfti-lastrow: yes">
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 3.25in; PADDING-TOP: 0in"
valign="top" width="312">
<p class="MsoNormal" style="MARGIN-RIGHT: -9pt">
<span><span style="FONT-SIZE: 11pt">   Net (benefit)
cost</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -9pt; TEXT-ALIGN: right" align="right">
<span><span style=
"FONT-SIZE: 11pt">$   </span></span>
</p>
</td>
<td style=
"BORDER-RIGHT: medium none; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 0.7in; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1.5pt double; mso-border-top-alt: solid windowtext .5pt"
valign="top" width="67">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -1.8pt; TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">1 </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -9pt; TEXT-ALIGN: right" align="right">
<span><span style=
"FONT-SIZE: 11pt">$   </span></span>
</p>
</td>
<td style=
"BORDER-RIGHT: medium none; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 0.7in; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1.5pt double; mso-border-top-alt: solid windowtext .5pt"
valign="top" width="67">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -1.8pt; TEXT-ALIGN: right" align=
"right">
<span><span style=
"FONT-SIZE: 11pt">(19)</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -9pt; TEXT-ALIGN: right" align="right">
<span><span style=
"FONT-SIZE: 11pt">$   </span></span>
</p>
</td>
<td style=
"BORDER-RIGHT: medium none; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 0.7in; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1.5pt double; mso-border-top-alt: solid windowtext .5pt"
valign="top" width="67">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -1.8pt; TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">46 </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -9pt; TEXT-ALIGN: right" align="right">
<span><span style=
"FONT-SIZE: 11pt">$   </span></span>
</p>
</td>
<td style=
"BORDER-RIGHT: medium none; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 0.7in; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1.5pt double; mso-border-top-alt: solid windowtext .5pt"
valign="top" width="67">
<p class="MsoNormal" style=
"MARGIN-RIGHT: -1.8pt; TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">34 </span></span>
</p>
</td>
</tr>
</tbody>
</table>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p><span style=
"FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman,serif; mso-fareast-font-family: Times New Roman; mso-ansi-language: EN-US; mso-fareast-language: EN-US; mso-bidi-language: AR-SA"><br style="PAGE-BREAK-BEFORE: always"
clear="all" /></span>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">The estimated
amortization of certain items from accumulated comprehensive
income (loss) into periodic benefit cost in 2009 is as
follows:</span></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
<table class="MsoTableGrid" style=
"BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none; BORDER-COLLAPSE: collapse; mso-yfti-tbllook: 480; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-border-insideh: none; mso-border-insidev: none"
cellspacing="0" cellpadding="0" border="0">
<tbody>
<tr style="mso-yfti-irow: 0; mso-yfti-firstrow: yes">
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 3in; PADDING-TOP: 0in"
valign="top" width="288">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1.3in; PADDING-TOP: 0in"
valign="top" width="125" colspan="2">
<p class="MsoNormal" style="TEXT-ALIGN: center" align=
"center">
<span><b style=
"mso-bidi-font-weight: normal"><span style=
"FONT-SIZE: 11pt">Six Months</span></b></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1.3in; PADDING-TOP: 0in"
valign="top" width="125" colspan="2">
<p class="MsoNormal" style="TEXT-ALIGN: center" align=
"center">
<span><b style=
"mso-bidi-font-weight: normal"><span style=
"FONT-SIZE: 11pt">Second</span></b></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 106.2pt; PADDING-TOP: 0in"
valign="top" width="142" colspan="2">
<p class="MsoNormal" style="TEXT-ALIGN: center" align=
"center">
<span><b style=
"mso-bidi-font-weight: normal"><span style=
"FONT-SIZE: 11pt">Year</span></b></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow: 1">
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 3in; PADDING-TOP: 0in"
valign="top" width="288">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1.3in; PADDING-TOP: 0in"
valign="top" width="125" colspan="2">
<p class="MsoNormal" style="TEXT-ALIGN: center" align=
"center">
<span><b style=
"mso-bidi-font-weight: normal"><span style=
"FONT-SIZE: 11pt">Ended</span></b></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1.3in; PADDING-TOP: 0in"
valign="top" width="125" colspan="2">
<p class="MsoNormal" style="TEXT-ALIGN: center" align=
"center">
<span><b style=
"mso-bidi-font-weight: normal"><span style=
"FONT-SIZE: 11pt">Half of</span></b></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 106.2pt; PADDING-TOP: 0in"
valign="top" width="142" colspan="2">
<p class="MsoNormal" style="TEXT-ALIGN: center" align=
"center">
<span><b style=
"mso-bidi-font-weight: normal"><span style=
"FONT-SIZE: 11pt">Ending</span></b></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow: 2">
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 3in; PADDING-TOP: 0in"
valign="top" width="288">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1.3in; PADDING-TOP: 0in"
valign="top" width="125" colspan="2">
<p class="MsoNormal" style="TEXT-ALIGN: center" align=
"center">
<span><b style=
"mso-bidi-font-weight: normal"><u><span style=
"FONT-SIZE: 11pt">June 30, 2009</span></u></b></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1.3in; PADDING-TOP: 0in"
valign="top" width="125" colspan="2">
<p class="MsoNormal" style="TEXT-ALIGN: center" align=
"center">
<span><b style=
"mso-bidi-font-weight: normal"><u><span style=
"FONT-SIZE: 11pt">2009</span></u></b></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 106.2pt; PADDING-TOP: 0in"
valign="top" width="142" colspan="2">
<p class="MsoNormal" style="TEXT-ALIGN: center" align=
"center">
<span><b style=
"mso-bidi-font-weight: normal"><u><span style=
"FONT-SIZE: 11pt">December 31,
2009</span></u></b></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow: 3">
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 3in; PADDING-TOP: 0in"
valign="top" width="288">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 293.4pt; PADDING-TOP: 0in"
valign="top" width="391" colspan="6">
<p class="MsoNormal" style="TEXT-ALIGN: center" align=
"center">
<span><i style=
"mso-bidi-font-style: normal"><span style=
"FONT-SIZE: 11pt">($ in millions)</span></i></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow: 4">
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 3in; PADDING-TOP: 0in"
valign="top" width="288">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 9pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 9pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1in; PADDING-TOP: 0in"
valign="top" width="96">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 9pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 9pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1in; PADDING-TOP: 0in"
valign="top" width="96">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 9pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 9pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 84.6pt; PADDING-TOP: 0in"
valign="top" width="113">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 9pt">  </span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow: 5">
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 3in; PADDING-TOP: 0in"
valign="top" width="288">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">Defined benefit
pension plans:</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1in; PADDING-TOP: 0in"
valign="top" width="96">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1in; PADDING-TOP: 0in"
valign="top" width="96">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 84.6pt; PADDING-TOP: 0in"
valign="top" width="113">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow: 6">
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 3in; PADDING-TOP: 0in"
valign="top" width="288">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">   Prior service
cost</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">$</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1in; PADDING-TOP: 0in"
valign="top" width="96">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">2 </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">$</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1in; PADDING-TOP: 0in"
valign="top" width="96">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">1 </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">$</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 84.6pt; PADDING-TOP: 0in"
valign="top" width="113">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">3 </span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow: 7">
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 3in; PADDING-TOP: 0in"
valign="top" width="288">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">   Estimated net
losses</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">$</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1in; PADDING-TOP: 0in"
valign="top" width="96">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">13 </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">$</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1in; PADDING-TOP: 0in"
valign="top" width="96">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">12 </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">$</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 84.6pt; PADDING-TOP: 0in"
valign="top" width="113">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">25 </span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow: 8">
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 3in; PADDING-TOP: 0in"
valign="top" width="288">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1in; PADDING-TOP: 0in"
valign="top" width="96">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1in; PADDING-TOP: 0in"
valign="top" width="96">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 84.6pt; PADDING-TOP: 0in"
valign="top" width="113">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow: 9">
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 3in; PADDING-TOP: 0in"
valign="top" width="288">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">Defined benefit
post retirement plans:</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1in; PADDING-TOP: 0in"
valign="top" width="96">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1in; PADDING-TOP: 0in"
valign="top" width="96">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 84.6pt; PADDING-TOP: 0in"
valign="top" width="113">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow: 10">
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 3in; PADDING-TOP: 0in"
valign="top" width="288">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">   Prior service
benefit</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">$</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1in; PADDING-TOP: 0in"
valign="top" width="96">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">(1)</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">$</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1in; PADDING-TOP: 0in"
valign="top" width="96">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">(1)</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">$</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 84.6pt; PADDING-TOP: 0in"
valign="top" width="113">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">(2)</span></span>
</p>
</td>
</tr>
<tr style="mso-yfti-irow: 11; mso-yfti-lastrow: yes">
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 3in; PADDING-TOP: 0in"
valign="top" width="288">
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">   Estimated net
losses</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">$</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1in; PADDING-TOP: 0in"
valign="top" width="96">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">18 </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">$</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 1in; PADDING-TOP: 0in"
valign="top" width="96">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">17 </span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 0.3in; PADDING-TOP: 0in"
valign="top" width="29">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">$</span></span>
</p>
</td>
<td style=
"PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; WIDTH: 84.6pt; PADDING-TOP: 0in"
valign="top" width="113">
<p class="MsoNormal" style="TEXT-ALIGN: right" align=
"right">
<span><span style="FONT-SIZE: 11pt">35 </span></span>
</p>
</td>
</tr>
</tbody>
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<p class="MsoNormal">
<a name="_AUCbbda68c24d78407abfa8df261cfe3632"><b style=
"mso-bidi-font-weight: normal"><span style=
"FONT-SIZE: 11pt">5.<span style="mso-spacerun: yes">  </span>
Stock Repurchase Program</span></b></a>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">In March 2007, NS’ Board
of Directors amended NS’ share repurchase program, increasing
the authorized amount of share repurchases from 50 million to
75 million shares and shortening the term of the program from
2015 to 2010.<span style="mso-spacerun: yes">  </span> The
timing and volume of purchases is guided by management’s
assessment of market conditions and other pertinent
facts.<span style="mso-spacerun: yes">  </span> Any near-term
purchases under the program are expected to be made with
internally generated cash or proceeds from
borrowings.<span style="mso-spacerun: yes">  </span> There
were no shares repurchased under this program in the first
six months of 2009.<span style="mso-spacerun: yes">  </span>
NS repurchased and retired 9.0 million shares in the first
six months of 2008, at a cost of $494 million.<span style=
"mso-spacerun: yes">  </span> Since inception of this program
in 2006, NS has repurchased and retired 64.7 million shares
of common stock at a total cost of
$3.3 billion.</span></span>
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<a name="_AUCa6b322644bde48feada83261cabd32ed"><b style=
"mso-bidi-font-weight: normal"><span style=
"FONT-SIZE: 11pt">4.<span style="mso-spacerun: yes">  </span>
Stockholders’ Equity</span></b></a>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">  </span></span>
</p>
<p class="MsoNormal">
<span><span style="FONT-SIZE: 11pt">Common stock is reported
net of shares held by consolidated subsidiaries of Norfolk
Southern, which at June 30, 2009, and December 31, 2008,
amounted to 20,509,698 and 20,579,088 shares, respectively,
with a cost of $19 million for both periods.</span></span>
</p>
<p class="MsoNormal" style="tab-stops: 143.25pt">
<span style="FONT-SIZE: 11pt"><span style=
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