pension corporate finance: funding value

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Pensions in Practice

O C T O B E R 2 7 , 2 0 1 0

A Morgan Stanley Publication For Pension Plan Sponsors

How Corporate Pension Plans Impact Stock Prices • The Fed’s “quantitative easing” program, which has caused a plunge in

yields, has widened pension funding gaps by boosting the present value of pension liabilities, as Morgan Stanley’s chief U.S. economist, Dick Berner, points out. This creates dilemmas for CFOs.

• Low interest rates expose four key risks embedded in pension plans:

1. Pension risk adds volatility to companies’ stock prices

2. Pension risk increases a firm’s beta

3. Pension risk increases a firm’s cost of capital

4. Investors view pension liabilities as riskier than debt

• Our study found both empirical and statistical evidence that pensions weigh on the stock prices of pension-heavy companies. The pension-heavy threshold is a pension liability in excess of 25% of market cap.

• Since the credit crisis began, plan size and funded status are the two pension factors that impact stock price performance most. Asset allocation matters less—though in different times it has mattered more.

• Surprising corporate finance implications stem from our analysis. The benefit from reducing a company’s WACC may outweigh the cost of actions such as funding the pension deficit by issuing company stock, or terminating the pension despite locking in historically low interest rates. Similarly, funding pension deficits with debt would likely create shareholder value by reducing enterprise volatility and lowering WACC.

Pension Solutions Group Caitlin Long 212.761.4995

[email protected] Ethan Bronsnick 212.761.5343 [email protected] Hannah Zwiebel 212.761.3070 [email protected]

Pension, Endowment and Foundation Coverage Group Sandra Haas 212.761.1320 [email protected] Chris Crevier 212.761.0039 [email protected] Ryan Vetter 212.761.8124 [email protected] Michael Jordan 212.761.1077 [email protected]

Transition Management Jim Kelly 212.761.8935 [email protected]

mailto:[email protected]







Pension Plans’ Impact on Stock Prices Pension Plans’ Impact on Stock Prices We conducted both empirical and statistical studies to confirm our thesis that pension plans indeed impact the stock prices of the companies sponsoring them.

We conducted both empirical and statistical studies to confirm our thesis that pension plans indeed impact the stock prices of the companies sponsoring them.

I. Empirical Findings I. Empirical Findings

a. Pension-heavy stocks have been more correlated with equity markets than companies without material pension exposure. Pension-heavy stocks—those whose pension liabilities exceed 25% of market cap—underperformed during the credit crisis, between October 2007 and March 2009 (see Exhibit 1). Subsequently, during the rebound, pension-heavy stocks outperformed from March 2009 to April 2010 (see Exhibit 2). During both periods, the trends became more pronounced as pension exposure increased.

a. Pension-heavy stocks have been more correlated with equity markets than companies without material pension exposure. Pension-heavy stocks—those whose pension liabilities exceed 25% of market cap—underperformed during the credit crisis, between October 2007 and March 2009 (see Exhibit 1). Subsequently, during the rebound, pension-heavy stocks outperformed from March 2009 to April 2010 (see Exhibit 2). During both periods, the trends became more pronounced as pension exposure increased.

Exhibit 1:Exhibit 1: Pension-Heavy Stocks Underperformed During Credit Crisis, 10/17/2007–3/6/2009 S&P Total Return: -44.38%

4 3815172445

7517 1322

283752

67

85

0.20.20.4

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10% 20% 30% 40% 50% 60% 70% 80%

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1.0 xNumber of Companies Ratio of Outperformers/Underperformers

4 3815172445

7517 1322

283752

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0.20.20.4

0.50.50.5

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10% 20% 30% 40% 50% 60% 70% 80%

0.0 x

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1.0 xNumber of Companies Ratio of Outperformers/Underperformers

Pension Liabilities as a Percent of Market Capitalization

# of Underperformzers

# of Outperfozzzrmers

Ratio below 1x indicates there were more underperformers (red) than outperformers (green)

Outperformers/Underperformers ratio

Sources: FactSet, Morgan Stanley

Exhibit 2: Pension-Heavy Stocks Outperformed During Recovery, 3/6/2009–4/23/2010 S&P Total Return: +66.57%

Pension Liabilities as a Percent of Market Capitalization

25 223138476576104 4 3

111219

3047

766.3

2.82.2

1.61.4

2.53.2

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8 xNumber of Companies Ratio of Outperformers/Underperformers

Ratio above 1x indicates multiple of outperformers (green) relative to underperformers (red)

# of Underperformers Outperformers/Underperformers ratio# of Outperformers


Pension exposure did not matter to stock price during the prior pension funding crisis of 2001-02. Indeed, it is different this time. Since the beginning of the credit crisis,

pension plans empirically mattered more to stock prices than during either the 2001-2002 stock market correction and 2003-2007 rebound. Potential reasons why ‘it’s different this time’ include historically low interest rates (which causes pensioners’ claim on firm value to be substantial), higher volatility in markets, and sector rotation away from technology (which masked correlation between stock price and pension exposure in 2001-2002).

We also compared the average historical and predicted betas for S&P 500 companies between 2003 and September 30, 2010, and found the following trend:

b. Pension-heavy stocks have consistently exhibited higher betas than those of non-pension heavy stocks, and the difference grew after the financial crisis began (see Exhibit 3). We found that the trend also holds true whether including or excluding technology stocks.

Exhibit 3: Average Annual Betas: 2003–09/30/2010 S&P 500 companies, excluding financial services and technology

Beta


II. Statistical Findings

Our statistical analysis tested whether pension metrics helped explain stock price beyond simply using earnings per share forecasts. We tested four pension metrics: (a) pension plan size (pension liabilities relative to market capitalization); (b) equity allocation of pension assets; (c) funding status (pension assets less pension liabilities); and (d) contributions as a percentage of pension assets. We performed this analysis between 2002-2009 as well as sub-periods, 2002-2004, 2005-2007, and 2007-2009. We summarize our key findings below, and provide supporting data in Exhibits 4 and 5a, 5b and 5c.

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12/31/03 12/31/04 12/31/05 12/31/06 12/31/07 12/31/08 12/31/09 09/30/10

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1.

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1.

1.

pension-heavy all other

This material is not a solicitation of any offer to buy or sell any security or other financial instrument or to participate in any trading strategy. This material was not prepared by the Morgan Stanley Research Department, and you should not regard it as a research report. Please refer to important information and qualifications at the end of this material.

2

Exhibit 4:Exhibit 4: Multiple Regression of Stock Price versus Independent Variables, 2002-09 S&P RETURN: -4 .9% Independent Variables Coefficient T-statistic P-value R-squared

Intercept -2.226 -1.176 0.240 0.682

Projected EPS 9.965 67.813 (1 ) 0.000 0.682

Pension Liability as % of Market Cap -3.252 -6.205 (1) 0.000 0.682

Funded Status (pension assets/pension liabilities) 9.893 6.202 (1) 0.000 0.682

Equity Allocation Percentage 11.025 5.264 (1) 0.000 0.682

Source: Morgan Stanley

Exhibit 5a: Multiple Regression, 2002-04 S&P RETURN: +3.3% Independent Variables Coefficient T-statistic P-value R-squared

Intercept -0.124 -0.043 0.966 0.680

Projected EPS 11.510 39.141 (1) 0.000 0.680



Equity Allocation Percentage 10.291 2.906 (1) 0.004 0.680

Contributions/Pension Assets 1.618 0.289 0.773 0.680


Exhibit 5b: Multiple Regression, 2005-2007 S&P RETURN: +22% Independent Variables Coefficient T-statistic P-value R-squared

Intercept 13.977 3.909 0.000 0.665

Projected EPS 9.815 43.015 (1) 0.000 0.665


Funded Status (pension assets/pension liabilities) 2.731 1.000 0.318 0.665

Equity Allocation Percentage 0.446 0.113 0.910 0.665

Contributions/Pension Assets -22.078 -2.573 (1) 0.010 0.665


Exhibit 5c: Multiple Regression, 2008-09 S&P RETURN: -24.6% Independent Variables Coefficient T-statistic P-value R-squared

Intercept -8.113 -2.001 0.046 0.697

Projected EPS 9.608 33.888 (1) 0.000 0.697



Equity Allocation Percentage 7.102 1.801 0.072 0.697

Contributions/Pension Assets 32.333 3.570 (1) 0.000 0.697


a. Pension exposure impacts stock prices. Pension plans’ size relative to market capitalization, funded status, and allocation to equities each showed a statistically significant relationship with stock prices.

b. Pension plan size is negatively correlated with stock price—meaning the larger the plan size relative to market cap, the lower the stock price. This relationship is (1) Statistically significant if t-score > 1.96

understandable in the context of extremely low interest rates, since pension liabilities begin to behave like perpetuities as interest rates approach zero and pensioners’ claim on a firm’s value grows. Pension size impacted stock price during each sub-periods and the entire 2002-09 period.

Pension size, funded status, and equity allocation are all statistically significant, as

indicated by a t-score >1.96

c. Stocks of companies with better-funded pension plans are more highly valued by the stock market than stocks of companies with large underfunded pensions. However, funding status was not relevant during the stock market rally of 2005-07.

d. Equity allocation impacts stock price over time, although it is inconsistent in sub time periods and matters substantially less today than it did earlier in the 2000s.

e. Contributions to the pension plan have no clear impact on stock performance. Contributions have become more relevant in recent sub-periods, during which they have exhibited a positive impact on stock price. During the 2005-07 boom, higher pension contributions had a negative impact on stock price, while during the financial crisis contributions helped stock price—indicating that in times of stress investors value lower pension deficits.

f. Investors view pension deficits as riskier than corporate debt. While fixed income investors and rating agencies have tended to view pension deficits somewhat qualitatively as ‘soft debt’ that could be extinguished by asset returns over time, our analysis suggests the stock market views a dollar of pension deficit as worse than a dollar of debt, as Exhibits 6a and 6b show. Since pension deficits are inherently more volatile than corporate debt, this finding makes sense.


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Exhibit 6a:Exhibit 6a: Pension Deficit vs. Stock Price, 2002-09


Exhibit 6b: Debt vs. Stock Price, 2002-09

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Debt as a % of Market CapStock Price

Stock Price

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Notes: 2370 observations from 2002-2009; 101 outliers were excluded. In a

multiple regression with projected EPS, pension deficit as a % of market

capitalization, and debt as a % of market capitalization, all variables were

statistically significant at the 99% confidence level. The coefficient for pension

deficit was 1.5 as large as the coefficient for debt, indicating that pension

deficits have a 50% greater impact on stock price.

III. Further Statistical Analysis: Pension Impact on Cost of Capital Stock Price

$100

a. Pension risk has a statistically significant relationship with equity beta. The bigger the pension, and/or the riskier its asset allocation, the higher the company’s equity beta.

Steeper slope For this section we updated analysis originally published in the Journal of Financial Economics, “Do a Firm’s Equity Returns Reflect the Risk of its Pension Plan?” by Li Jin, Robert C. Merton, and Zvi Bodie, 2006. We found the relationship between pension risk and beta was weaker from 2002-2009 than that found by Merton, et. al., during their study period of 1993-1998. Variations in data sources and methodologies (such as ERISA vs. GAAP data, domestic vs. global exposures) may explain some of the difference.

indicates greater impact

$0

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$60

Pension Deficit as % of Market Cap

$80

Our analysis measured the extent to which the pension beta impacts the equity beta of each S&P 500 company that has pension assets greater than 3% of its market capitalization.

0% 20% 40% 60%

Stock Price

b. Our results suggest pensions add 73bps to the weighted average cost of capital for the S&P 500, at the median. We found that for a 1.0 increase in pension beta, the firm beta increases by 0.38. In other words, slight increases in the equity weighting of a pension portfolio measurably increase the stock beta of the plan sponsor. Our results showed a weaker relationship than that found by Merton, et. al., in their work, which found that a 1.0 increase in pension beta causes approximately a 1.5 increase in firm beta. Data and methodology variations likely account for the difference. We found an r-squared of 28.8% and the overall results were statistically significant.

IV. Conclusion: What Companies Can Do

Our analysis implies companies can reduce the detrimental impact of pensions on their stock prices by taking some or all of the following steps, some of which may be counterintuitive:

1. Fund the pension, which should help stock prices more than paying down corporate debt. The funding could take any form, but our analysis implies even that funding the pension with corporate debt is a net positive for the stock price—because it replaces a more volatile form of debt (i.e., a pension deficit) with a less volatile form (i.e.,


4


5

corporate bond or loan). More funding is probably better, as more risk would be reduced.

For pension-heavy companies, funding with common stock could be positive for the stock price despite the dilution—which, at first blush, is a highly counterintuitive result. For example, JC Penney’s contribution of common stock to its pension in May 2009 diluted its shareholders by 7.8%, but its stock was up 1.4% on the date of announcement (vs. S&P 500 decline of 0.2% that day). Within a year, JC Penney’s beta declined to 1.26 from 1.37, and S&P upgraded its credit rating despite a challenging retail environment. The transaction created value for JC Penney’s shareholders.

2. Reduce the pension liability, by changing the plan’s benefit structure, closing, freezing or terminating the plan, or accelerating lump sum payouts.

In 2012, when the IRS’s mandatory subsidy of lump sum distributions fully expires, companies will be able to settle their pension obligations by paying lump sum distributions with little or no incremental cost. Consequently, companies with substantial pension liabilities may begin in 2012 to make enhanced efforts to settle their pension obligations to eligible participants, which is the equivalent of paying down debt. Eligible participants include retiring employees; vested participants who no longer work for the company; or, in the case of a terminating pension plan, potentially all participants.

More companies are exploring potential plan terminations. Again, at first blush, this may seem counterintuitive in light of the historically low level of interest rates. However, the tail risks of pension plans are greater in low interest rate environments—because the present value exposure of extreme, long-term events is higher. The higher cost of tail exposures is partly why stocks are more sensitive to pensions today than during the prior funding crisis of a decade ago. Consequently, while plan terminations are more expensive amid low interest rates, the positive stock price impact of a plan termination is theoretically greater.

Companies should consider the potential for such strategic transactions in their long-term liquidity planning, since lump sums and plan terminations often require substantial liquidity.

3. De-risk the pension, though at present the impact of either funding the pension or reducing the pension liability is greater than de-risking the pension.

The authors would like to thank Chief U.S. Economist Dick Berner and his U.S. Economics Team for their contributions to this analysis.

Exhibit 7: Average US GAAP Funded Status of S&P 500 vs. Pension Liability Discount Rate, 1986-present

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105%

100%

103% 103%

111%

116%

112%

129%

121%

101%

82%

88% 89%91%

98%

105%

77%

82%

74%

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116% 117%116%

119%

106%109%

60%

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140%

1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 8/31/10

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S&P 12/31 filers' funded status Citigroup 20-year discount rate (year-end)

US GAAP Funded Status (%) Discount Rate (%)

Sources: FactSet, Society of Actuaries website, Morgan Stanley. Note: To estimate mid-year results, we use the S&P 500 Total Return Index (SPTR) as a proxy for equity returns, the BarCap US Aggregate Index (LBUSTRUU) as a proxy for fixed

income returns, and a weighted average of both for “other” asset returns. Company disclosures are not sufficient to estimate such factors as returns on alternative asset classes or hedging gains.

E 9/30/10E

Note: The above data for asset allocation may not match those disclosed in company filings, as new 10-K disclosure requirements meant asset classification was inconsistent from company to company. Sources: FactSet, 10-K reports, Bloomberg, Capital IQ. * as disclosed in most recent 10-K

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Basic Materials: Companies with Defined Benefit Plans $ in Millions; Ranked by 12/31/09 Pension Liability as % of 10/15/10 Market Capitalization

2009 2010E*

Pension Pension Expected Return Employer Pension Employer Pension Pension Pension Pension Deficit as % of Pension Liability as % of

Company Plan Assets Plan Liabilities % Equities % Bonds % Other Discount Rate % on Assets % 10-K Date Contribution Contribution (Deficit)/Surplus Funded Status Mkt Cap at 10/15/2010 Mkt Cap at 10/15/2010

Basic Materials

AK Steel Holding Corp. $2,370.1 $3,494.8 59.0% 39.0% 2.0% 5.75% 8.50% 12/2009 $217.1 $105.0 ($1,124.7) 67.8% 72.5% 225.4%

Innospec Inc. 671.8 796.0 26.0% 74.0% 0.0% 6.50% 5.75% 12/2008 7.1 20.0 (124.20) 84.4% 30.9% 197.8%

United States Steel Corp. 8,280.0 9,988.0 62.0% 28.0% 10.0% 5.50% 8.00% 12/2008 219.0 23.0 (1708.00) 82.9% 27.1% 158.5%

Weyerhaeuser Co. 4,159.0 4,759.0 37.2% 4.6% 58.2% 5.90% 9.50% 12/2009 62.0 130.0 (600.00) 87.4% 18.0% 143.1%

USEC Inc. 661.7 840.0 54.0% 46.0% 0.0% 6.00% 7.75% 12/2008 22.1 16.2 (178.30) 78.8% 29.2% 137.4%

Olin Corp. 1,722.0 1,777.5 14.0% 52.0% 34.0% 5.75% 8.50% 12/2009 9.8 4.0 (55.50) 96.9% 3.3% 105.1%

Huntsman Corp. 2,341.0 2,857.0 45.0% 42.0% 13.0% 5.90% 8.25% 12/2008 138.0 112.0 (516.00) 81.9% 17.9% 98.9%

Neenah Paper Inc. 168.2 234.7 59.0% 37.0% 4.0% 6.17% 7.92% 12/2008 10.2 14.0 (66.50) 71.7% 27.8% 98.2%

Pactiv Corp. 3,447.0 4,084.0 72.0% 28.0% 0.0% 5.75% 9.00% 12/2009 556.0 9.0 (637.00) 84.4% 14.5% 92.7%

International Paper Co. 6,784.0 9,544.0 49.0% 32.0% 19.0% 5.80% 8.25% 12/2009 35.0 41.0 (2760.00) 71.1% 26.7% 92.2%

Armstrong World Industries Inc. 2,040.6 2,165.9 60.0% 31.0% 9.0% 5.60% 8.00% 12/2009 21.0 20.9 (125.30) 94.2% 5.2% 90.0%

USG Corp. 881.0 1,075.0 60.0% 20.0% 20.0% 5.95% 7.00% 12/2009 49.0 45.0 (194.00) 82.0% 15.8% 87.5%

Alcoa Inc. 8,529.0 11,638.0 33.0% 53.0% 14.0% 6.15% 8.75% 12/2009 136.0 100.0 (3109.00) 73.3% 23.2% 86.7%

Ashland Inc. 2,745.0 3,593.0 11.0% 75.0% 14.0% 5.82% 7.97% 09/2009 47.0 141.0 (848.00) 76.4% 20.4% 86.6%

Crown Holdings Inc. 3,607.0 4,155.0 55.0% 17.0% 28.0% 5.70% 8.75% 12/2009 74.0 67.0 (548.00) 86.8% 11.3% 85.8%

Owens-Illinois Inc. 3,283.9 3,801.6 59.7% 38.2% 2.1% 5.76% 7.61% 12/2009 123.1 15.0 (517.70) 86.4% 11.4% 83.5%

Arch Chemicals Inc. 497.8 689.8 66.0% 34.0% 0.0% 6.00% 8.50% 12/2009 58.4 25.0 (192.00) 72.2% 21.2% 76.0%

Graphic Packaging Holding Co. 622.2 858.9 53.4% 40.2% 6.4% 6.10% 7.91% 12/2008 43.6 70.0 (236.70) 72.4% 19.7% 71.4%

Glatfelter 485.7 406.1 65.0% 30.0% 5.0% 6.10% 8.50% 12/2008 2.1 1.3 79.60 119.6% -14.0% 71.2%

W.R. Grace & CO. 919.1 1,531.1 8.0% 62.0% 30.0% 5.75% 8.00% 12/2008 61.4 13.0 (612.00) 60.0% 28.2% 70.6%

Temple-Inland Inc. 1,176.0 1,467.0 13.0% 84.0% 3.0% 5.79% 6.88% 12/2009 36.0 0.0 (291.00) 80.2% 13.4% 67.6%

Celanese Corp. (Series A) 2,329.0 3,342.0 46.0% 54.0% 0.0% 5.83% 7.94% 12/2009 44.0 46.0 (1013.00) 69.7% 19.0% 62.8%

Dow Chemical Co. 14,589.0 19,914.0 45.0% 35.0% 20.0% 5.97% 8.46% 12/2009 355.0 304.0 (5325.00) 73.3% 15.5% 57.8%

E.I. DuPont de Nemours & Co. 17,143.0 22,770.0 52.0% 31.0% 17.0% 5.80% 8.75% 12/2009 306.0 270.0 (5627.00) 75.3% 13.2% 53.6%

Carpenter Technology Corp. 586.6 829.9 58.4% 37.9% 3.7% 6.25% 8.00% 06/2010 3.5 3.9 (243.30) 70.7% 14.7% 50.1%

Solutia Inc. 681.0 1,044.0 58.0% 32.0% 10.0% 5.25% 8.50% 12/2009 77.0 39.0 (363.00) 65.2% 16.7% 48.2%

Allegheny Technologies Inc. 2,163.5 2,220.7 33.0% 64.0% 3.0% 6.20% 8.75% 12/2009 357.5 7.0 (57.20) 97.4% 1.2% 46.8%

Ferro Corp. 380.7 540.2 51.0% 48.0% 1.0% 6.74% 8.50% 12/2008 16.6 18.1 (159.53) 70.5% 13.6% 46.2%

H.B. Fuller Co. 406.9 451.6 51.0% 49.0% 0.0% 5.69% 8.75% 11/2009 141.4 9.4 (44.66) 90.1% 4.4% 44.6%

Owens Corning Inc 1,078.0 1,451.0 48.0% 48.0% 4.0% 5.80% 8.00% 12/2009 43.0 38.0 (373.00) 74.3% 10.8% 42.1%

PolyOne Corp. 320.6 498.7 65.0% 30.0% 5.0% 6.17% 8.50% 12/2009 23.5 20.8 (178.10) 64.3% 14.5% 40.6%

Sonoco Products Co. 986.9 1,286.2 64.6% 27.0% 8.4% 5.74% 8.50% 12/2008 113.2 22.0 (299.33) 76.7% 8.5% 36.7%

PPG Industries Inc. 3,594.0 4,545.0 44.9% 52.7% 2.4% 5.70% 7.90% 12/2009 452.0 240.0 (951.00) 79.1% 7.5% 35.7%

Cytec Industries Inc. 635.6 869.9 53.5% 37.5% 9.0% 5.70% 6.90% 12/2009 53.0 63.5 (234.30) 73.1% 8.0% 29.7%

Ball Corp. 984.4 1,587.8 40.0% 47.0% 13.0% 6.00% 8.25% 12/2009 120.5 55.0 (603.40) 62.0% 10.6% 27.9%

Louisiana-Pacific Corp. 232.7 290.9 53.7% 21.7% 24.6% 5.86% 7.28% 12/2008 1.4 12.0 (58.20) 80.0% 5.6% 27.8%

Eastman Chemical Co. 1,087.0 1,508.0 58.0% 7.0% 35.0% 5.73% 8.47% 12/2009 200.0 0.0 (421.00) 72.1% 7.4% 26.6%

Rockwood Holdings Inc. 261.3 689.9 47.0% 45.5% 7.5% 5.89% 8.28% 12/2008 7.2 6.6 (428.60) 37.9% 16.4% 26.4%

International Flavors & Fragrances Inc. 965.1 1,028.2 39.5% 50.9% 9.6% 6.10% 8.25% 12/2009 51.9 19.5 (63.09) 93.9% 1.6% 25.8%

2009 12/31/09


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Basic Materials: Companies with Defined Benefit Plans (cont’d) $ in Millions; Ranked by 12/31/09 Pension Liability as % of 10/15/10 Market Capitalization

2009 2010E *

Pension P ension Expected Return E mployer Pension Em pl oyer P ension Pension Pension Pension Defi cit as % of P ension Liability as % of

Company P lan Assets Plan Li abi lities % E qui ties % Bonds % Other Discount Rate % on A ssets % 10-K Date Contribut ion Cont ribut ion (Defic it)/Surplus Funded Status Mkt Cap at 10/15/2010 M kt Cap at 10/15/2010

Masco Corp. 474.0 958.0 71.0% 26.0% 3.0% 5.80% 8.00% 12/2009 27.0 25.0 (484.00) 49.5% 12.1% 24.0%

Nalco Holding Co. 415.3 834.0 50.0% 36.0% 14.0% 5.50% 8.25% 12/2009 72.9 67.7 (418.70) 49.8% 11.4% 22.7%

Rock-Tenn Co. (Cl A) 277.3 438.9 55.0% 35.0% 10.0% 5.53% 8.65% 09/2009 40.9 26.0 (161.60) 63.2% 7.9% 21.4%

FMC Corp. 766.7 1,098.6 71.0% 25.0% 4.0% 5.90% 8.50% 12/2009 88.8 80.0 (331.90) 69.8% 6.5% 21.4%

Greif Inc. (Cl A) 463.8 541.8 60.0% 32.0% 8.0% 5.72% 7.69% 10/2009 20.4 17.1 (77.94) 85.6% 2.8% 19.3%

Air Products & Chemicals Inc. 2,251.0 3,386.0 64.0% 31.0% 5.0% 5.70% 8.80% 09/2009 184.8 360.0 (1135.00) 66.5% 6.5% 19.2%

Si lgan Hold ings Inc. 362.8 491.6 58.0% 42.0% 0.0% 5.90% 8.50% 12/2009 44.2 0.0 (128.85) 73.8% 5.0% 19.0%

Bemis Co. Inc. 484.6 621.3 66.0% 30.0% 4.0% 5.75% 8.25% 12/2009 34.4 22.6 (136.70) 78.0% 3.7% 16.8%

Cabot Corp. 297.0 365.0 50.0% 46.0% 4.0% 5.30% 7.80% 09/2009 19.0 0.0 (68.00) 81.4% 3.1% 16.5%

Vulcan Materia ls Co. 493.6 709.8 47.0% 33.0% 20.0% 5.45% 8.25% 12/2009 27.6 72.5 (216.14) 69.5% 4.6% 15.1%

Ecolab Inc. 1,198.2 1,656.1 62.0% 19.0% 19.0% 5.84% 8.50% 12/2009 256.3 28.0 (457.90) 72.4% 3.7% 13.5%

Albemarle Corp. 417.1 570.9 52.0% 15.0% 33.0% 5.77% 8.69% 12/2009 36.4 6.0 (153.75) 73.1% 3.5% 12.9%

Lennox International Inc. 231.1 299.4 59.0% 36.8% 4.2% 6.07% 8.25% 12/2009 42.2 0.0 (68.30) 77.2% 2.9% 12.7%

RPM In ternational Inc. 211.0 299.0 56.0% 35.0% 9.0% 6.90% 8.75% 05/2010 42.3 19.0 (88.04) 70.6% 3.3% 11.2%

Lubrizol Corp. 471.4 781.3 61.0% 35.0% 4.0% 5.76% 7.61% 12/2008 53.2 61.0 (309.90) 60.3% 4.1% 10.2%

Sealed Air Corp. 241.9 344.8 28.0% 36.0% 36.0% 5.50% 8.00% 12/2009 16.5 12.0 (102.90) 70.2% 2.7% 9.1%

Titanium Metals Corp. 194.1 314.9 84.0% 15.0% 1.0% 5.80% 10.00% 12/2009 8.8 11.7 (120.80) 61.6% 3.3% 8.6%

Massey Energy Co. 237.2 303.4 29.2% 59.3% 11.5% 6.00% 8.00% 12/2009 15.1 20.3 (66.22) 78.2% 1.8% 8.3%

Scotts Miracle-Gro Co. 187.1 283.9 53.5% 45.5% 1.0% 5.23% 8.00% 09/2009 10.8 11.9 (96.80) 65.9% 2.8% 8.2%

Cleveland-Cliffs Inc. 483.4 750.8 44.1% 38.0% 17.9% 5.66% 8.50% 12/2009 18.5 45.4 (267.40) 64.4% 2.9% 8.2%

Consol Energy Inc. 462.0 654.0 60.0% 40.0% 0.0% 5.79% 8.00% 12/2009 67.7 63.6 (192.02) 70.6% 2.1% 7.2%

Monsanto Co. 1,516.0 2,051.0 55.4% 33.2% 11.5% 5.30% 8.00% 08/2009 187.0 132.0 (535.00) 73.9% 1.8% 7.0%

Praxai r Inc. 1,423.0 1,945.0 57.0% 40.0% 3.0% 5.90% 8.25% 12/2009 128.0 75.0 (522.00) 73.2% 1.9% 7.0%

Arch Coal Inc. 211.9 280.7 58.0% 37.0% 5.0% 5.97% 8.50% 12/2008 18.8 16.6 (68.79) 75.5% 1.6% 6.4%

Peabody Energy Corp. 629.6 844.9 58.9% 28.5% 12.6% 6.19% 8.75% 12/2009 38.7 3.4 (215.30) 74.5% 1.5% 6.0%

Sigma-Aldrich Corp. 303.0 353.8 55.0% 38.5% 6.5% 5.65% 8.25% 12/2009 24.9 5.2 (50.80) 85.6% 0.7% 4.8%

Freeport-McMoRan Copper & Gold Inc. 1,166.0 1,631.0 53.5% 39.4% 7.1% 7.69% 9.25% 12/2009 35.0 21.0 (465.00) 71.5% 1.0% 3.5%

CF Industries Holdings Inc. 233.5 276.0 52.0% 47.0% 1.0% 5.80% 7.00% 12/2009 22.3 9.6 (42.50) 84.6% 0.5% 3.3%

Newmont Mining Corp. 372.0 580.0 65.0% 30.0% 5.0% 6.10% 8.00% 12/2009 55.0 60.0 (208.00) 64.1% 0.7% 1.9%

Potash Corporation 649.1 792.4 59.0% 41.0% 0.0% 5.85% 7.50% 12/2009 133.4 83.8 (143.30) 81.9% 0.3% 1.8%

Mosaic Co. 468.5 524.7 19.5% 75.0% 5.5% 7.16% 6.93% 05/2010 5.5 24.4 (56.20) 89.3% 0.2% 1.8%

MeadWestvaco Corp. 3,462.0 2,656.0 47.0% 48.0% 5.0% 5.74% 7.98% 12/2009 20.0 3.0 806.00 130.3% -18.7%

Totals for All Basic Material Companies $124,872.7 $162,263.4 51.1% 38.8% 10.1% 5.89% 8.18% $6,091.0 $3,530.9 77.0%

Totals for 12/31/09 Basic Materia ls Reporting Companies $115,462.4 $149,498.6 51.6% 37.6% 10.7% 5.90% 8.19% $5,388.3 $2,786.2 77.2%

Totals for All S&P 500 Companies $1,176,208.1 $1,438,659.0 53.7% 35.9% 10.6% 5.89% 7.85% $69,073.3 $32,425.4 81.8%

Totals for 12/31/09 S&P 500 Reporting Companies $1,063,246.7 $1,293,598.2 54.5% 36.0% 9.9% 5.82% 7.94% $60,029.7 $26,600.8 82.2%

2009 12/31/092009 2010E *



Masco Corp. 474.0 958.0 71.0% 26.0% 3.0% 5.80% 8.00% 12/2009 27.0 25.0 (484.00) 49.5% 12.1% 24.0%

Nalco Holding Co. 415.3 834.0 50.0% 36.0% 14.0% 5.50% 8.25% 12/2009 72.9 67.7 (418.70) 49.8% 11.4% 22.7%

Rock-Tenn Co. (Cl A) 277.3 438.9 55.0% 35.0% 10.0% 5.53% 8.65% 09/2009 40.9 26.0 (161.60) 63.2% 7.9% 21.4%

FMC Corp. 766.7 1,098.6 71.0% 25.0% 4.0% 5.90% 8.50% 12/2009 88.8 80.0 (331.90) 69.8% 6.5% 21.4%

Greif Inc. (Cl A) 463.8 541.8 60.0% 32.0% 8.0% 5.72% 7.69% 10/2009 20.4 17.1 (77.94) 85.6% 2.8% 19.3%

Air Products & Chemicals Inc. 2,251.0 3,386.0 64.0% 31.0% 5.0% 5.70% 8.80% 09/2009 184.8 360.0 (1135.00) 66.5% 6.5% 19.2%

Si lgan Hold ings Inc. 362.8 491.6 58.0% 42.0% 0.0% 5.90% 8.50% 12/2009 44.2 0.0 (128.85) 73.8% 5.0% 19.0%

Bemis Co. Inc. 484.6 621.3 66.0% 30.0% 4.0% 5.75% 8.25% 12/2009 34.4 22.6 (136.70) 78.0% 3.7% 16.8%

Cabot Corp. 297.0 365.0 50.0% 46.0% 4.0% 5.30% 7.80% 09/2009 19.0 0.0 (68.00) 81.4% 3.1% 16.5%

Vulcan Materia ls Co. 493.6 709.8 47.0% 33.0% 20.0% 5.45% 8.25% 12/2009 27.6 72.5 (216.14) 69.5% 4.6% 15.1%

Ecolab Inc. 1,198.2 1,656.1 62.0% 19.0% 19.0% 5.84% 8.50% 12/2009 256.3 28.0 (457.90) 72.4% 3.7% 13.5%

Albemarle Corp. 417.1 570.9 52.0% 15.0% 33.0% 5.77% 8.69% 12/2009 36.4 6.0 (153.75) 73.1% 3.5% 12.9%


RPM In ternational Inc. 211.0 299.0 56.0% 35.0% 9.0% 6.90% 8.75% 05/2010 42.3 19.0 (88.04) 70.6% 3.3% 11.2%

Lubrizol Corp. 471.4 781.3 61.0% 35.0% 4.0% 5.76% 7.61% 12/2008 53.2 61.0 (309.90) 60.3% 4.1% 10.2%

Sealed Air Corp. 241.9 344.8 28.0% 36.0% 36.0% 5.50% 8.00% 12/2009 16.5 12.0 (102.90) 70.2% 2.7% 9.1%

Titanium Metals Corp. 194.1 314.9 84.0% 15.0% 1.0% 5.80% 10.00% 12/2009 8.8 11.7 (120.80) 61.6% 3.3% 8.6%

Massey Energy Co. 237.2 303.4 29.2% 59.3% 11.5% 6.00% 8.00% 12/2009 15.1 20.3 (66.22) 78.2% 1.8% 8.3%

Scotts Miracle-Gro Co. 187.1 283.9 53.5% 45.5% 1.0% 5.23% 8.00% 09/2009 10.8 11.9 (96.80) 65.9% 2.8% 8.2%

Cleveland-Cliffs Inc. 483.4 750.8 44.1% 38.0% 17.9% 5.66% 8.50% 12/2009 18.5 45.4 (267.40) 64.4% 2.9% 8.2%

Consol Energy Inc. 462.0 654.0 60.0% 40.0% 0.0% 5.79% 8.00% 12/2009 67.7 63.6 (192.02) 70.6% 2.1% 7.2%

Monsanto Co. 1,516.0 2,051.0 55.4% 33.2% 11.5% 5.30% 8.00% 08/2009 187.0 132.0 (535.00) 73.9% 1.8% 7.0%

Praxai r Inc. 1,423.0 1,945.0 57.0% 40.0% 3.0% 5.90% 8.25% 12/2009 128.0 75.0 (522.00) 73.2% 1.9% 7.0%

Arch Coal Inc. 211.9 280.7 58.0% 37.0% 5.0% 5.97% 8.50% 12/2008 18.8 16.6 (68.79) 75.5% 1.6% 6.4%

Peabody Energy Corp. 629.6 844.9 58.9% 28.5% 12.6% 6.19% 8.75% 12/2009 38.7 3.4 (215.30) 74.5% 1.5% 6.0%

Sigma-Aldrich Corp. 303.0 353.8 55.0% 38.5% 6.5% 5.65% 8.25% 12/2009 24.9 5.2 (50.80) 85.6% 0.7% 4.8%

Freeport-McMoRan Copper & Gold Inc. 1,166.0 1,631.0 53.5% 39.4% 7.1% 7.69% 9.25% 12/2009 35.0 21.0 (465.00) 71.5% 1.0% 3.5%

CF Industries Holdings Inc. 233.5 276.0 52.0% 47.0% 1.0% 5.80% 7.00% 12/2009 22.3 9.6 (42.50) 84.6% 0.5% 3.3%

Newmont Mining Corp. 372.0 580.0 65.0% 30.0% 5.0% 6.10% 8.00% 12/2009 55.0 60.0 (208.00) 64.1% 0.7% 1.9%

Potash Corporation 649.1 792.4 59.0% 41.0% 0.0% 5.85% 7.50% 12/2009 133.4 83.8 (143.30) 81.9% 0.3% 1.8%

Mosaic Co. 468.5 524.7 19.5% 75.0% 5.5% 7.16% 6.93% 05/2010 5.5 24.4 (56.20) 89.3% 0.2% 1.8%

MeadWestvaco Corp. 3,462.0 2,656.0 47.0% 48.0% 5.0% 5.74% 7.98% 12/2009 20.0 3.0 806.00 130.3% -18.7%

Totals for All Basic Material Companies $124,872.7 $162,263.4 51.1% 38.8% 10.1% 5.89% 8.18% $6,091.0 $3,530.9 77.0%

Totals for 12/31/09 Basic Materia ls Reporting Companies $115,462.4 $149,498.6 51.6% 37.6% 10.7% 5.90% 8.19% $5,388.3 $2,786.2 77.2%



2009 12/31/09


9

Consumer Products: Companies with Defined Benefit Plans $ in Millions; Ranked by 12/31/09 Pension Liability as % of 10/15/10 Market Capitalization

2009 2010E * 12/31/09



Revlon Inc. (Cl A) $405.6 $614.5 41.5% 36.1% 22.4% 5.68% 8.25% 12/2009 $23.3 $24.0 ($208.9) 66.0% 29.6% 87.0%

Brunswick Corp. 682.2 1,143.8 62.0% 25.0% 13.0% 5.85% 8.00% 12/2009 21.6 25.0 (461.6) 59.6% 32.0% 79.3%

Whirlpool Corp. 2,452.0 4,020.0 51.5% 40.9% 7.6% 5.75% 7.75% 12/2009 176.0 41.0 (1,568.0) 61.0% 24.5% 62.7%

Sara Lee Corp. 3,752.0 4,218.0 24.0% 63.0% 13.0% 6.50% 6.90% 06/2010 332.0 110.0 (466.0) 89.0% 4.7% 42.8%

Molson Coors Brewing Co. (Cl B) 2,782.7 3,408.8 33.3% 60.0% 6.7% 4.75% 6.50% 12/2009 59.8 40.0 (626.1) 81.6% 6.9% 37.4%

Snap-On Inc. 716.2 968.7 55.0% 15.0% 30.0% 5.90% 7.80% 12/2009 9.8 10.5 (252.5) 73.9% 9.0% 34.5%

Smithfield Foods Inc. 586.2 926.4 55.0% 41.0% 4.0% 8.25% 8.25% 04/2010 74.1 90.4 (340.2) 63.3% 12.4% 33.6%

Coca-Cola Enterprises Inc. 2,964.0 3,723.0 58.0% 19.0% 23.0% 5.80% 7.80% 12/2008 474.0 155.0 (759.0) 79.6% 6.3% 30.8%

Reynolds American Inc. 4,054.0 5,270.0 52.0% 43.0% 5.0% 6.30% 8.24% 12/2009 295.0 309.0 (1,216.0) 76.9% 6.8% 29.5%

Newell Rubbermaid Inc. 987.5 1,410.6 45.0% 40.0% 15.0% 5.75% 8.50% 12/2009 103.7 32.7 (423.1) 70.0% 8.3% 27.8%

Jack in the Box Inc. 231.6 339.9 61.0% 30.0% 9.0% 6.16% 7.75% 12/2008 25.8 24.8 (108.3) 68.1% 8.5% 26.7%

ConAgra Foods Inc. 1,903.2 2,220.4 46.0% 40.0% 14.0% 6.90% 7.75% 05/2010 122.6 116.0 (317.2) 85.7% 3.2% 22.3%

Kimberly-Clark Corp. 4,244.0 5,491.0 63.0% 37.0% 0.0% 5.85% 8.17% 12/2009 845.0 240.0 (1,247.0) 77.3% 4.6% 20.1%

Kraft Foods Inc. 8,893.0 10,596.0 61.0% 34.0% 5.0% 5.93% 8.00% 12/2009 636.0 240.0 (1,703.0) 83.9% 3.1% 19.1%

Kel logg Co. 3,334.0 3,616.0 70.5% 28.5% 1.0% 5.70% 8.90% 12/2009 87.0 35.0 (282.0) 92.2% 1.5% 19.0%

Campbell Soup Co. 1,767.0 2,275.0 49.0% 34.0% 17.0% 5.46% 8.13% 07/2010 284.0 143.0 (508.0) 77.7% 4.1% 18.4%

Energizer Holdings Inc. 699.4 936.3 62.0% 35.0% 3.0% 5.60% 8.00% 12/2008 16.0 19.0 (236.9) 74.7% 4.5% 17.8%

Genera l Mil ls Inc. 3,529.8 4,030.0 49.7% 22.4% 27.9% 5.85% 9.55% 05/2010 17.1 0.0 (500.2) 87.6% 2.1% 16.8%

Dean Foods Co. 223.4 294.6 58.8% 34.8% 6.4% 6.00% 7.70% 12/2009 24.5 12.0 (71.2) 75.8% 3.8% 15.5%

H.J. He inz Co. 1,874.7 2,230.1 58.0% 37.0% 5.0% 6.50% 8.20% 04/2010 539.9 50.0 (355.4) 84.1% 2.3% 14.2%

Flowers Foods Inc. 266.2 320.0 51.8% 13.0% 35.2% 5.98% 8.00% 12/2009 0.5 0.8 (53.9) 83.2% 2.4% 14.0%

Hormel Foods Corp. 689.8 785.6 66.4% 33.5% 0.1% 6.28% 8.25% 10/2009 114.0 29.0 (95.8) 87.8% 1.6% 13.1%

Fortune Brands Inc. 821.7 1,111.5 56.6% 35.5% 8.0% 5.90% 8.30% 12/2009 26.4 67.9 (289.8) 73.9% 3.4% 12.9%

Del Monte Foods Co. 268.2 359.4 44.0% 46.0% 10.0% 7.90% 8.00% 12/2008 96.7 40.0 (91.2) 74.6% 3.2% 12.5%

McCormick & Co. Inc. 513.6 681.8 64.9% 24.3% 10.8% 6.15% 8.30% 11/2009 72.3 45.0 (168.2) 75.3% 3.0% 12.0%

Jarden Corp. 224.5 351.5 29.7% 36.3% 34.0% 5.73% 7.94% 12/2008 9.2 31.0 (127.0) 63.9% 4.2% 11.7%

Al tria Group Inc. 4,870.0 6,075.0 74.0% 19.0% 7.0% 5.90% 8.00% 12/2009 37.0 50.0 (1,205.0) 80.2% 2.3% 11.7%

2009

Consumer Product s

2009 2010E * 12/31/09



Revlon Inc. (Cl A) $405.6 $614.5 41.5% 36.1% 22.4% 5.68% 8.25% 12/2009 $23.3 $24.0 ($208.9) 66.0% 29.6% 87.0%

Brunswick Corp. 682.2 1,143.8 62.0% 25.0% 13.0% 5.85% 8.00% 12/2009 21.6 25.0 (461.6) 59.6% 32.0% 79.3%

Whirlpool Corp. 2,452.0 4,020.0 51.5% 40.9% 7.6% 5.75% 7.75% 12/2009 176.0 41.0 (1,568.0) 61.0% 24.5% 62.7%

Sara Lee Corp. 3,752.0 4,218.0 24.0% 63.0% 13.0% 6.50% 6.90% 06/2010 332.0 110.0 (466.0) 89.0% 4.7% 42.8%

Molson Coors Brewing Co. (Cl B) 2,782.7 3,408.8 33.3% 60.0% 6.7% 4.75% 6.50% 12/2009 59.8 40.0 (626.1) 81.6% 6.9% 37.4%

Snap-On Inc. 716.2 968.7 55.0% 15.0% 30.0% 5.90% 7.80% 12/2009 9.8 10.5 (252.5) 73.9% 9.0% 34.5%

Smithfield Foods Inc. 586.2 926.4 55.0% 41.0% 4.0% 8.25% 8.25% 04/2010 74.1 90.4 (340.2) 63.3% 12.4% 33.6%

Coca-Cola Enterprises Inc. 2,964.0 3,723.0 58.0% 19.0% 23.0% 5.80% 7.80% 12/2008 474.0 155.0 (759.0) 79.6% 6.3% 30.8%

Reynolds American Inc. 4,054.0 5,270.0 52.0% 43.0% 5.0% 6.30% 8.24% 12/2009 295.0 309.0 (1,216.0) 76.9% 6.8% 29.5%

Newell Rubbermaid Inc. 987.5 1,410.6 45.0% 40.0% 15.0% 5.75% 8.50% 12/2009 103.7 32.7 (423.1) 70.0% 8.3% 27.8%

Jack in the Box Inc. 231.6 339.9 61.0% 30.0% 9.0% 6.16% 7.75% 12/2008 25.8 24.8 (108.3) 68.1% 8.5% 26.7%

ConAgra Foods Inc. 1,903.2 2,220.4 46.0% 40.0% 14.0% 6.90% 7.75% 05/2010 122.6 116.0 (317.2) 85.7% 3.2% 22.3%

Kimberly-Clark Corp. 4,244.0 5,491.0 63.0% 37.0% 0.0% 5.85% 8.17% 12/2009 845.0 240.0 (1,247.0) 77.3% 4.6% 20.1%

Kraft Foods Inc. 8,893.0 10,596.0 61.0% 34.0% 5.0% 5.93% 8.00% 12/2009 636.0 240.0 (1,703.0) 83.9% 3.1% 19.1%

Kel logg Co. 3,334.0 3,616.0 70.5% 28.5% 1.0% 5.70% 8.90% 12/2009 87.0 35.0 (282.0) 92.2% 1.5% 19.0%

Campbell Soup Co. 1,767.0 2,275.0 49.0% 34.0% 17.0% 5.46% 8.13% 07/2010 284.0 143.0 (508.0) 77.7% 4.1% 18.4%

Energizer Holdings Inc. 699.4 936.3 62.0% 35.0% 3.0% 5.60% 8.00% 12/2008 16.0 19.0 (236.9) 74.7% 4.5% 17.8%

Genera l Mil ls Inc. 3,529.8 4,030.0 49.7% 22.4% 27.9% 5.85% 9.55% 05/2010 17.1 0.0 (500.2) 87.6% 2.1% 16.8%

Dean Foods Co. 223.4 294.6 58.8% 34.8% 6.4% 6.00% 7.70% 12/2009 24.5 12.0 (71.2) 75.8% 3.8% 15.5%

H.J. He inz Co. 1,874.7 2,230.1 58.0% 37.0% 5.0% 6.50% 8.20% 04/2010 539.9 50.0 (355.4) 84.1% 2.3% 14.2%

Flowers Foods Inc. 266.2 320.0 51.8% 13.0% 35.2% 5.98% 8.00% 12/2009 0.5 0.8 (53.9) 83.2% 2.4% 14.0%

Hormel Foods Corp. 689.8 785.6 66.4% 33.5% 0.1% 6.28% 8.25% 10/2009 114.0 29.0 (95.8) 87.8% 1.6% 13.1%

Fortune Brands Inc. 821.7 1,111.5 56.6% 35.5% 8.0% 5.90% 8.30% 12/2009 26.4 67.9 (289.8) 73.9% 3.4% 12.9%

Del Monte Foods Co. 268.2 359.4 44.0% 46.0% 10.0% 7.90% 8.00% 12/2008 96.7 40.0 (91.2) 74.6% 3.2% 12.5%

McCormick & Co. Inc. 513.6 681.8 64.9% 24.3% 10.8% 6.15% 8.30% 11/2009 72.3 45.0 (168.2) 75.3% 3.0% 12.0%

Jarden Corp. 224.5 351.5 29.7% 36.3% 34.0% 5.73% 7.94% 12/2008 9.2 31.0 (127.0) 63.9% 4.2% 11.7%

Al tria Group Inc. 4,870.0 6,075.0 74.0% 19.0% 7.0% 5.90% 8.00% 12/2009 37.0 50.0 (1,205.0) 80.2% 2.3% 11.7%

2009

Consumer Product s


10

Consumer Products: Companies with Defined Benefit Plans (cont’d) $ in Millions; Ranked by 12/31/09 Pension Liability as % of 10/15/10 Market Capitalization

2009 2010E * 12/31/09



Bunge Ltd. 791.0 873.0 51.0% 46.0% 3.0% 6.20% 8.00% 12/2009 55.0 16.0 (82.0) 90.6% 0.9% 10.0%

Avon Products Inc. 993.4 1,446.5 61.0% 35.0% 4.0% 5.35% 8.00% 12/2009 64.2 60.0 (453.1) 68.7% 3.0% 9.6%

Archer Daniels Midland Co. 1,427.0 2,012.0 48.0% 46.0% 6.0% 6.10% 7.20% 06/2010 249.0 38.0 (585.0) 70.9% 2.7% 9.5%

Hershey Co. 942.4 957.5 65.6% 30.4% 4.0% 5.70% 8.50% 12/2009 54.5 0.0 (15.1) 98.4% 0.1% 8.2%

PepsiCo Inc. 6,981.0 8,315.0 52.0% 40.0% 8.0% 6.10% 7.80% 12/2009 1,208.0 700.0 (1,334.0) 84.0% 1.3% 7.8%

Lorillard Inc. 921.0 962.0 27.7% 30.7% 41.6% 6.00% 7.50% 12/2009 23.0 15.0 (41.0) 95.7% 0.3% 7.6%

Conste llation Brands Inc. (C l A) 240.1 288.8 28.9% 24.0% 47.1% 6.82% 7.31% 02/2010 7.5 7.3 (48.7) 83.1% 1.2% 7.1%

Leggett & Platt Inc. 197.4 234.5 46.0% 46.0% 8.0% 5.90% 6.90% 12/2009 2.9 2.0 (37.1) 84.2% 1.1% 6.7%

Colgate-Palmol ive Co. 1,701.0 2,409.0 58.0% 37.0% 5.0% 5.75% 8.00% 12/2009 130.0 85.0 (708.0) 70.6% 1.9% 6.5%

Mattel Inc. 296.8 513.3 74.0% 22.0% 4.0% 5.60% 8.00% 12/2009 30.4 18.0 (216.5) 57.8% 2.7% 6.4%

Estee Lauder Cos. (Cl A) 685.5 848.9 26.0% 54.0% 20.0% 6.50% 7.75% 06/2010 114.9 21.4 (163.4) 80.8% 1.2% 6.4%

Procter & Gamble Co. 6,310.0 10,016.0 42.0% 51.0% 7.0% 6.00% 7.40% 06/2010 439.0 321.0 (3,706.0) 63.0% 2.1% 5.6%

Yum! Brands Inc. 976.0 1,180.0 57.0% 38.0% 5.0% 6.30% 8.00% 12/2009 280.0 0.0 (204.0) 82.7% 0.9% 5.2%

Clorox Co. 275.0 468.0 71.0% 24.0% 5.0% 6.81% 8.11% 06/2010 53.0 0.0 (193.0) 58.8% 2.0% 4.9%

Hasbro Inc. 250.4 306.2 44.0% 37.0% 19.0% 5.73% 8.50% 12/2009 14.9 5.1 (55.8) 81.8% 0.9% 4.8%

J.M. Smucker Co. 300.5 362.7 39.0% 40.0% 21.0% 7.40% 7.75% 04/2010 4.4 15.0 (62.2) 82.8% 0.8% 4.8%

Brown-Forman Corp. (C l B) 284.0 415.0 52.0% 28.0% 20.0% 7.94% 8.75% 04/2010 13.0 38.0 (131.0) 68.4% 1.4% 4.5%

Phi lip Morris Internationa l Inc. 4,437.0 4,877.0 60.0% 35.0% 5.0% 5.90% 7.20% 12/2009 558.0 230.0 (440.0) 91.0% 0.4% 4.5%

Stanley Black & Decker Inc. 319.5 432.7 61.0% 33.0% 6.0% 5.75% 7.50% 12/2009 14.6 0.0 (113.2) 73.8% 1.1% 4.1%

Dr Pepper Snapple Group Inc. 223.0 253.0 50.0% 50.0% 0.0% 5.90% 7.30% 12/2009 43.0 12.0 (30.0) 88.1% 0.4% 3.0%

Coca-Cola Co. 3,032.0 3,996.0 46.0% 20.0% 34.0% 5.75% 8.00% 12/2009 269.0 73.0 (964.0) 75.9% 0.7% 2.9%

Darden Restaurants Inc. 139.9 169.7 61.0% 26.0% 13.0% 7.00% 9.00% 05/2010 0.4 4.5 (29.8) 82.4% 0.5% 2.7%

Totals for All Consumer Companies $85,460.3 $108,754.8 52.3% 35.0% 12.6% 6.14% 7.95% $8,152.0 $3,642.4 78.6%

Totals for 12/31/09 Consumer Reporting Companies $61,182.1 $76,806.4 54.1% 34.2% 11.8% 5.89% 7.90% $5,714.8 $2,613.8 79.7%



2009 2009 2010E * 12/31/09



Bunge Ltd. 791.0 873.0 51.0% 46.0% 3.0% 6.20% 8.00% 12/2009 55.0 16.0 (82.0) 90.6% 0.9% 10.0%

Avon Products Inc. 993.4 1,446.5 61.0% 35.0% 4.0% 5.35% 8.00% 12/2009 64.2 60.0 (453.1) 68.7% 3.0% 9.6%

Archer Daniels Midland Co. 1,427.0 2,012.0 48.0% 46.0% 6.0% 6.10% 7.20% 06/2010 249.0 38.0 (585.0) 70.9% 2.7% 9.5%

Hershey Co. 942.4 957.5 65.6% 30.4% 4.0% 5.70% 8.50% 12/2009 54.5 0.0 (15.1) 98.4% 0.1% 8.2%

PepsiCo Inc. 6,981.0 8,315.0 52.0% 40.0% 8.0% 6.10% 7.80% 12/2009 1,208.0 700.0 (1,334.0) 84.0% 1.3% 7.8%

Lorillard Inc. 921.0 962.0 27.7% 30.7% 41.6% 6.00% 7.50% 12/2009 23.0 15.0 (41.0) 95.7% 0.3% 7.6%

Conste llation Brands Inc. (C l A) 240.1 288.8 28.9% 24.0% 47.1% 6.82% 7.31% 02/2010 7.5 7.3 (48.7) 83.1% 1.2% 7.1%

Leggett & Platt Inc. 197.4 234.5 46.0% 46.0% 8.0% 5.90% 6.90% 12/2009 2.9 2.0 (37.1) 84.2% 1.1% 6.7%

Colgate-Palmol ive Co. 1,701.0 2,409.0 58.0% 37.0% 5.0% 5.75% 8.00% 12/2009 130.0 85.0 (708.0) 70.6% 1.9% 6.5%

Mattel Inc. 296.8 513.3 74.0% 22.0% 4.0% 5.60% 8.00% 12/2009 30.4 18.0 (216.5) 57.8% 2.7% 6.4%

Estee Lauder Cos. (Cl A) 685.5 848.9 26.0% 54.0% 20.0% 6.50% 7.75% 06/2010 114.9 21.4 (163.4) 80.8% 1.2% 6.4%

Procter & Gamble Co. 6,310.0 10,016.0 42.0% 51.0% 7.0% 6.00% 7.40% 06/2010 439.0 321.0 (3,706.0) 63.0% 2.1% 5.6%

Yum! Brands Inc. 976.0 1,180.0 57.0% 38.0% 5.0% 6.30% 8.00% 12/2009 280.0 0.0 (204.0) 82.7% 0.9% 5.2%

Clorox Co. 275.0 468.0 71.0% 24.0% 5.0% 6.81% 8.11% 06/2010 53.0 0.0 (193.0) 58.8% 2.0% 4.9%

Hasbro Inc. 250.4 306.2 44.0% 37.0% 19.0% 5.73% 8.50% 12/2009 14.9 5.1 (55.8) 81.8% 0.9% 4.8%

J.M. Smucker Co. 300.5 362.7 39.0% 40.0% 21.0% 7.40% 7.75% 04/2010 4.4 15.0 (62.2) 82.8% 0.8% 4.8%

Brown-Forman Corp. (C l B) 284.0 415.0 52.0% 28.0% 20.0% 7.94% 8.75% 04/2010 13.0 38.0 (131.0) 68.4% 1.4% 4.5%

Phi lip Morris Internationa l Inc. 4,437.0 4,877.0 60.0% 35.0% 5.0% 5.90% 7.20% 12/2009 558.0 230.0 (440.0) 91.0% 0.4% 4.5%

Stanley Black & Decker Inc. 319.5 432.7 61.0% 33.0% 6.0% 5.75% 7.50% 12/2009 14.6 0.0 (113.2) 73.8% 1.1% 4.1%

Dr Pepper Snapple Group Inc. 223.0 253.0 50.0% 50.0% 0.0% 5.90% 7.30% 12/2009 43.0 12.0 (30.0) 88.1% 0.4% 3.0%

Coca-Cola Co. 3,032.0 3,996.0 46.0% 20.0% 34.0% 5.75% 8.00% 12/2009 269.0 73.0 (964.0) 75.9% 0.7% 2.9%

Darden Restaurants Inc. 139.9 169.7 61.0% 26.0% 13.0% 7.00% 9.00% 05/2010 0.4 4.5 (29.8) 82.4% 0.5% 2.7%

Totals for All Consumer Companies $85,460.3 $108,754.8 52.3% 35.0% 12.6% 6.14% 7.95% $8,152.0 $3,642.4 78.6%

Totals for 12/31/09 Consumer Reporting Companies $61,182.1 $76,806.4 54.1% 34.2% 11.8% 5.89% 7.90% $5,714.8 $2,613.8 79.7%



2009


11

Energy: Companies with Defined Benefit Plans $ in Millions; Ranked by 12/31/09 Pension Liability as % of 10/15/10 Market Capitalization

2009 2010E *

Pension Pension Expected Return Employer Pensi on Employer Pension P ension Pension Pension Defic it as % of P ension Li abi lity as % of

Company P lan Assets Plan Li abil ities % E quit ies % Bonds % Other Discount Rate % on A ssets % 10-K Date Contributi on Cont ri but ion (Defic it)/Surpl us Funded Status Mkt Cap at 10/15/2010 Mkt Cap at 10/15/2010

McDermott International Inc. $2,027.8 $2,806.7 53.5% 34.5% 12.0% 6.00% 7.83% 12/2009 $52.1 $168.9 ($778.9) 72.2% 14.1% 50.7%

ONEOK Inc. 748.7 997.0 67.0% 10.0% 23.0% 6.00% 8.50% 12/2009 77.1 43.3 (248.3) 75.1% 10.8% 43.5%

Sunoco Inc. 804.0 1,223.0 62.0% 38.0% 0.0% 5.50% 8.25% 12/2009 47.0 0.0 (419.0) 65.7% 8.8% 25.6%

Tesoro Corp. 262.0 511.0 55.0% 37.0% 8.0% 5.80% 8.50% 12/2009 37.0 0.0 (249.0) 51.3% 12.5% 25.6%

Bristow Group Inc. 261.8 343.1 55.4% 40.1% 4.5% 7.00% 7.50% 03/2010 19.8 4.1 (81.4) 76.3% 5.9% 24.9%

El Paso Corp. 1,979.0 2,133.0 50.0% 50.0% 0.0% 5.61% 8.00% 12/2009 4.0 5.0 (154.0) 92.8% 1.7% 22.9%

Dresser-Rand Group Inc. 275.9 371.5 52.0% 29.0% 19.0% 5.80% 8.50% 12/2009 37.4 6.0 (95.6) 74.3% 5.4% 21.0%

Rowan Cos. Inc. 337.3 532.3 64.0% 33.0% 3.0% 5.97% 8.00% 12/2009 36.2 57.3 (195.0) 63.4% 5.3% 14.5%

Valero Energy Corp. 1,251.0 1,454.0 51.0% 46.0% 3.0% 5.80% 7.72% 12/2008 92.0 50.0 (203.0) 86.0% 2.0% 14.2%

Marathon Oil Corp. 1,971.0 3,384.0 11.0% 81.0% 8.0% 5.50% 8.50% 12/2009 345.0 17.0 (1,413.0) 58.2% 5.6% 13.4%

Exxon Mobil Corp. 25,678.0 37,325.0 60.0% 38.0% 2.0% 6.25% 8.00% 12/2009 4,526.0 1,090.0 (11,647.0) 68.8% 3.5% 11.3%

ConocoPhil lips 5,425.0 8,143.0 56.0% 35.0% 9.0% 5.35% 7.00% 12/2009 861.0 760.0 (2,718.0) 66.6% 3.0% 9.1%

Wil liams Cos. 860.0 1,118.0 78.0% 17.0% 5.0% 5.78% 7.75% 12/2009 61.0 61.0 (258.0) 76.9% 2.1% 9.1%

Spectra Energy Corp. 1,010.0 1,366.0 63.0% 37.0% 0.0% 5.28% 7.25% 12/2009 65.0 7.0 (356.0) 73.9% 2.3% 9.0%

FMC Technologies Inc. 619.8 753.9 65.0% 4.0% 31.0% 5.76% 8.35% 12/2009 63.9 14.5 (134.1) 82.2% 1.6% 8.7%

Chevron Corp. 10,539.0 14,379.0 56.2% 27.7% 16.1% 5.30% 7.80% 12/2009 1,739.0 900.0 (3,840.0) 73.3% 2.3% 8.6%

Schlumberger Ltd. 5,230.0 5,957.0 58.8% 30.3% 11.0% 6.00% 8.50% 12/2009 1,102.0 600.0 (727.0) 87.8% 0.9% 7.8%

Hess Corp. 1,072.0 1,547.0 56.9% 26.9% 16.2% 5.80% 7.50% 12/2009 220.0 145.0 (475.0) 69.3% 2.3% 7.5%

Transocean L td. 875.0 1,335.0 68.0% 23.0% 9.0% 5.84% 8.50% 12/2009 70.0 76.0 (460.0) 65.5% 2.4% 7.1%

Anadarko Petroleum Corp. 979.0 1,630.0 60.0% 34.0% 6.0% 5.25% 7.50% 12/2009 163.0 133.0 (651.0) 60.1% 2.3% 5.8%

Murphy Oi l Corp. 375.9 521.5 60.5% 38.7% 0.8% 5.97% 6.60% 12/2009 50.8 20.8 (145.5) 72.1% 1.2% 4.2%

Baker Hughes Inc. 594.0 702.0 53.0% 44.0% 3.0% 5.90% 8.50% 12/2009 15.0 45.0 (108.0) 84.6% 0.6% 3.6%

Devon Energy Corp. 532.0 980.0 49.0% 39.0% 12.0% 6.00% 7.18% 12/2009 55.0 34.0 (448.0) 54.3% 1.5% 3.3%

Weatherford In ternational Ltd. 97.7 274.1 60.0% 38.0% 2.0% 5.25% 7.00% 12/2008 8.7 0.0 (176.4) 35.7% 2.1% 3.3%

Halliburton Co. 722.0 943.0 59.0% 41.0% 0.0% 5.45% 8.00% 12/2009 99.0 38.0 (221.0) 76.6% 0.7% 3.0%

Cameron International Corp. 242.2 274.5 56.0% 44.0% 0.0% 5.03% 5.25% 12/2009 25.4 9.4 (32.3) 88.2% 0.3% 2.7%

Cabot Oil & Gas Corp. 53.2 75.1 60.0% 37.0% 3.0% 5.75% 8.00% 12/2009 10.1 0.5 (21.9) 70.8% 0.7% 2.4%

Noble Corp. 242.2 227.5 34.0% 63.0% 3.0% 5.65% 7.80% 12/2009 17.6 4.0 14.7 106.5% -0.1% 2.2%

Noble Energy Inc. 172.0 228.0 73.0% 27.0% 0.0% 6.00% 8.00% 12/2009 20.0 2.0 (56.0) 75.4% 0.4% 1.7%

National Oi lwell Varco Inc. 193.0 262.0 36.0% 46.0% 18.0% 5.26% 7.75% 12/2009 12.0 0.0 (69.0) 73.7% 0.3% 1.3%

Occidental Petroleum Corp. 482.0 583.0 60.0% 40.0% 0.0% 5.12% 6.50% 12/2009 31.0 11.0 (101.0) 82.7% 0.1% 0.8%

Southwestern Energy Co. 46.7 56.7 62.0% 38.0% 0.0% 5.75% 7.50% 12/2009 9.0 9.6 (10.0) 82.3% 0.1% 0.5%

Apache Corp. 118.2 135.3 47.0% 49.0% 4.0% 5.70% 6.05% 12/2009 16.0 6.0 (17.2) 87.3% 0.0% 0.4%

Nabors Industries Ltd. 14.1 18.9 55.0% 42.0% 3.0% 6.00% 6.50% 12/2009 0.6 0.5 (4.8) 74.5% 0.1% 0.3%

Totals for All Energy Companies $66,091.4 $92,591.1 56.1% 37.0% 6.9% 5.72% 7.65% $9,988.9 $4,318.9 71.4%

Totals for 12/31/09 Energy Reporting Companies $65,829.6 $92,248.0 56.1% 36.9% 7.0% 5.68% 7.65% $9,969.1 $4,314.8 71.4%



2009

Energy

12/31/092009 2010E *

Pension Pension Expected Return Employer Pensi on Employer Pension P ension Pension Pension Defic it as % of P ension Li abi lity as % of

Company P lan Assets Plan Li abil ities % E quit ies % Bonds % Other Discount Rate % on A ssets % 10-K Date Contributi on Cont ri but ion (Defic it)/Surpl us Funded Status Mkt Cap at 10/15/2010 Mkt Cap at 10/15/2010

McDermott International Inc. $2,027.8 $2,806.7 53.5% 34.5% 12.0% 6.00% 7.83% 12/2009 $52.1 $168.9 ($778.9) 72.2% 14.1% 50.7%

ONEOK Inc. 748.7 997.0 67.0% 10.0% 23.0% 6.00% 8.50% 12/2009 77.1 43.3 (248.3) 75.1% 10.8% 43.5%

Sunoco Inc. 804.0 1,223.0 62.0% 38.0% 0.0% 5.50% 8.25% 12/2009 47.0 0.0 (419.0) 65.7% 8.8% 25.6%

Tesoro Corp. 262.0 511.0 55.0% 37.0% 8.0% 5.80% 8.50% 12/2009 37.0 0.0 (249.0) 51.3% 12.5% 25.6%

Bristow Group Inc. 261.8 343.1 55.4% 40.1% 4.5% 7.00% 7.50% 03/2010 19.8 4.1 (81.4) 76.3% 5.9% 24.9%

El Paso Corp. 1,979.0 2,133.0 50.0% 50.0% 0.0% 5.61% 8.00% 12/2009 4.0 5.0 (154.0) 92.8% 1.7% 22.9%

Dresser-Rand Group Inc. 275.9 371.5 52.0% 29.0% 19.0% 5.80% 8.50% 12/2009 37.4 6.0 (95.6) 74.3% 5.4% 21.0%

Rowan Cos. Inc. 337.3 532.3 64.0% 33.0% 3.0% 5.97% 8.00% 12/2009 36.2 57.3 (195.0) 63.4% 5.3% 14.5%

Valero Energy Corp. 1,251.0 1,454.0 51.0% 46.0% 3.0% 5.80% 7.72% 12/2008 92.0 50.0 (203.0) 86.0% 2.0% 14.2%

Marathon Oil Corp. 1,971.0 3,384.0 11.0% 81.0% 8.0% 5.50% 8.50% 12/2009 345.0 17.0 (1,413.0) 58.2% 5.6% 13.4%

Exxon Mobil Corp. 25,678.0 37,325.0 60.0% 38.0% 2.0% 6.25% 8.00% 12/2009 4,526.0 1,090.0 (11,647.0) 68.8% 3.5% 11.3%

ConocoPhil lips 5,425.0 8,143.0 56.0% 35.0% 9.0% 5.35% 7.00% 12/2009 861.0 760.0 (2,718.0) 66.6% 3.0% 9.1%

Wil liams Cos. 860.0 1,118.0 78.0% 17.0% 5.0% 5.78% 7.75% 12/2009 61.0 61.0 (258.0) 76.9% 2.1% 9.1%

Spectra Energy Corp. 1,010.0 1,366.0 63.0% 37.0% 0.0% 5.28% 7.25% 12/2009 65.0 7.0 (356.0) 73.9% 2.3% 9.0%

FMC Technologies Inc. 619.8 753.9 65.0% 4.0% 31.0% 5.76% 8.35% 12/2009 63.9 14.5 (134.1) 82.2% 1.6% 8.7%

Chevron Corp. 10,539.0 14,379.0 56.2% 27.7% 16.1% 5.30% 7.80% 12/2009 1,739.0 900.0 (3,840.0) 73.3% 2.3% 8.6%

Schlumberger Ltd. 5,230.0 5,957.0 58.8% 30.3% 11.0% 6.00% 8.50% 12/2009 1,102.0 600.0 (727.0) 87.8% 0.9% 7.8%

Hess Corp. 1,072.0 1,547.0 56.9% 26.9% 16.2% 5.80% 7.50% 12/2009 220.0 145.0 (475.0) 69.3% 2.3% 7.5%

Transocean L td. 875.0 1,335.0 68.0% 23.0% 9.0% 5.84% 8.50% 12/2009 70.0 76.0 (460.0) 65.5% 2.4% 7.1%

Anadarko Petroleum Corp. 979.0 1,630.0 60.0% 34.0% 6.0% 5.25% 7.50% 12/2009 163.0 133.0 (651.0) 60.1% 2.3% 5.8%

Murphy Oi l Corp. 375.9 521.5 60.5% 38.7% 0.8% 5.97% 6.60% 12/2009 50.8 20.8 (145.5) 72.1% 1.2% 4.2%

Baker Hughes Inc. 594.0 702.0 53.0% 44.0% 3.0% 5.90% 8.50% 12/2009 15.0 45.0 (108.0) 84.6% 0.6% 3.6%

Devon Energy Corp. 532.0 980.0 49.0% 39.0% 12.0% 6.00% 7.18% 12/2009 55.0 34.0 (448.0) 54.3% 1.5% 3.3%

Weatherford In ternational Ltd. 97.7 274.1 60.0% 38.0% 2.0% 5.25% 7.00% 12/2008 8.7 0.0 (176.4) 35.7% 2.1% 3.3%

Halliburton Co. 722.0 943.0 59.0% 41.0% 0.0% 5.45% 8.00% 12/2009 99.0 38.0 (221.0) 76.6% 0.7% 3.0%

Cameron International Corp. 242.2 274.5 56.0% 44.0% 0.0% 5.03% 5.25% 12/2009 25.4 9.4 (32.3) 88.2% 0.3% 2.7%

Cabot Oil & Gas Corp. 53.2 75.1 60.0% 37.0% 3.0% 5.75% 8.00% 12/2009 10.1 0.5 (21.9) 70.8% 0.7% 2.4%

Noble Corp. 242.2 227.5 34.0% 63.0% 3.0% 5.65% 7.80% 12/2009 17.6 4.0 14.7 106.5% -0.1% 2.2%

Noble Energy Inc. 172.0 228.0 73.0% 27.0% 0.0% 6.00% 8.00% 12/2009 20.0 2.0 (56.0) 75.4% 0.4% 1.7%

National Oi lwell Varco Inc. 193.0 262.0 36.0% 46.0% 18.0% 5.26% 7.75% 12/2009 12.0 0.0 (69.0) 73.7% 0.3% 1.3%

Occidental Petroleum Corp. 482.0 583.0 60.0% 40.0% 0.0% 5.12% 6.50% 12/2009 31.0 11.0 (101.0) 82.7% 0.1% 0.8%

Southwestern Energy Co. 46.7 56.7 62.0% 38.0% 0.0% 5.75% 7.50% 12/2009 9.0 9.6 (10.0) 82.3% 0.1% 0.5%

Apache Corp. 118.2 135.3 47.0% 49.0% 4.0% 5.70% 6.05% 12/2009 16.0 6.0 (17.2) 87.3% 0.0% 0.4%

Nabors Industries Ltd. 14.1 18.9 55.0% 42.0% 3.0% 6.00% 6.50% 12/2009 0.6 0.5 (4.8) 74.5% 0.1% 0.3%

Totals for All Energy Companies $66,091.4 $92,591.1 56.1% 37.0% 6.9% 5.72% 7.65% $9,988.9 $4,318.9 71.4%

Totals for 12/31/09 Energy Reporting Companies $65,829.6 $92,248.0 56.1% 36.9% 7.0% 5.68% 7.65% $9,969.1 $4,314.8 71.4%



2009

Energy

12/31/09


12

Financial Services: Companies with Defined Benefit Plans $ in Millions; Ranked by 12/31/09 Pension Liability as % of 10/15/10 Market Capitalization

2009 2010E *



Marsh & McLennan Cos. $9,142.0 $9,983.0 21.7% 15.3% 63.0% 6.00% 8.10% 12/2009 $419.0 $275.0 (841.0) 91.6% 6.5% 77.1%

AON Corp. 4,906.0 6,639.0 44.8% 45.9% 9.3% 5.60% 8.70% 12/2009 437.0 381.0 (1,733.0) 73.9% 16.3% 62.4%

Wil lis Group Holdings PLC 2,529.0 2,647.0 57.0% 29.0% 14.0% 6.10% 8.00% 12/2009 82.0 130.0 (118.0) 95.5% 2.2% 49.8%

Dun & Bradstreet Corp. 1,214.2 1,665.0 64.0% 32.0% 4.0% 5.71% 8.14% 12/2009 24.4 31.0 (450.8) 72.9% 11.9% 43.8%

Hartford Financial Services Group Inc. 3,526.0 4,283.0 24.5% 68.0% 7.5% 6.00% 7.30% 12/2009 201.0 200.0 (757.0) 82.3% 7.2% 40.5%

Prudential Financial Inc. 9,591.0 8,855.0 13.0% 74.0% 13.0% 5.75% 7.50% 12/2009 109.0 110.0 736.0 108.3% -3.0% 35.7%

CNA Financial Corp. 2,117.0 2,702.0 19.0% 80.0% 1.0% 5.70% 8.00% 12/2009 67.0 62.0 (585.0) 78.3% 7.7% 35.5%

First American Financia l Corp. 203.1 499.4 66.0% 31.7% 2.3% 5.81% 8.00% 12/2008 0.0 28.4 (296.3) 40.7% 19.5% 32.8%

Al lstate Corp. 4,127.0 5,233.0 45.0% 34.0% 21.0% 6.25% 8.50% 12/2009 526.0 340.0 (1,106.0) 78.9% 6.3% 29.9%

The Hanover Insurance Group Inc. 424.5 556.6 43.0% 57.0% 0.0% 6.13% 7.50% 12/2009 48.5 3.6 (132.1) 76.3% 6.4% 26.8%

Unitrin Inc. 312.9 377.0 42.0% 39.0% 19.0% 6.00% 7.00% 12/2008 0.0 0.0 (64.1) 83.0% 4.2% 24.9%

First Horizon National Corp. 496.3 533.5 43.0% 17.0% 40.0% 6.05% 8.05% 12/2009 54.3 0.0 (37.1) 93.0% 1.5% 22.1%

American International Group Inc. 4,112.0 6,000.0 48.0% 27.0% 25.0% 6.00% 7.75% 12/2009 592.0 134.0 (1,888.0) 68.5% 6.9% 21.9%

Principal Financial Group Inc. 1,250.3 1,797.4 70.0% 23.0% 7.0% 6.00% 8.00% 12/2009 95.6 75.0 (547.1) 69.6% 6.5% 21.2%

MetLife Inc. 5,770.0 6,649.0 44.0% 47.0% 9.0% 6.25% 8.25% 12/2009 70.0 150.0 (879.0) 86.8% 2.8% 21.1%

Comerica Inc. 1,338.0 1,369.0 60.0% 40.0% 0.0% 5.92% 8.25% 12/2009 100.0 0.0 (31.0) 97.7% 0.5% 20.5%

Popular Inc. 413.6 557.3 60.8% 35.4% 3.8% 5.90% 8.00% 12/2008 9.2 0.0 (143.7) 74.2% 4.9% 19.1%

Loews Corp. 2,303.0 3,029.0 18.4% 40.6% 41.0% 5.70% 7.75% 12/2009 84.0 75.0 (726.0) 76.0% 4.4% 18.2%

Regions Financia l Corp. (New) 1,252.0 1,586.0 26.0% 50.0% 24.0% 6.02% 8.50% 12/2009 109.0 38.0 (334.0) 78.9% 3.8% 18.1%

Unum Group 1,049.3 1,297.1 57.0% 42.0% 1.0% 6.40% 7.50% 12/2009 79.7 72.3 (247.8) 80.9% 3.4% 17.7%

KeyCorp 839.0 1,202.0 55.0% 30.0% 15.0% 5.25% 8.25% 12/2009 12.0 0.0 (363.0) 69.8% 5.2% 17.1%

American National Insurance Co. 184.5 360.4 46.0% 50.0% 4.0% 5.73% 7.65% 12/2009 24.9 16.0 (175.9) 51.2% 8.3% 17.1%

Lincoln National Corp. 1,149.0 1,339.0 45.7% 54.3% 0.0% 6.00% 8.00% 12/2009 55.0 0.0 (190.0) 85.8% 2.4% 17.0%

SunTrust Banks Inc. 2,334.2 2,007.9 61.0% 37.0% 2.0% 6.01% 8.00% 12/2009 24.9 11.9 326.3 116.2% -2.7% 16.4%

Equifax Inc. 505.4 624.2 67.7% 31.6% 0.7% 5.77% 8.02% 12/2009 32.9 0.0 (118.8) 81.0% 3.0% 15.6%

Assurant Inc. 461.0 658.2 42.0% 50.0% 8.0% 5.94% 7.50% 12/2009 53.1 40.0 (197.2) 70.0% 4.5% 15.0%

Bank of America Corp . 18,374.0 17,484.0 52.1% 33.5% 14.4% 5.69% 8.00% 12/2009 322.0 230.0 890.0 105.1% -0.7% 14.7%

Citigroup Inc. 15,526.0 16,578.0 28.0% 40.0% 32.0% 5.90% 7.75% 12/2009 393.0 160.0 (1,052.0) 93.7% 0.9% 14.6%

PNC Financial Services Group Inc. 3,721.0 3,893.0 59.0% 35.0% 6.0% 5.45% 8.25% 12/2009 24.0 0.0 (172.0) 95.6% 0.6% 14.6%

NYSE Euronext 760.0 1,013.0 60.0% 39.0% 1.0% 5.50% 8.00% 12/2009 9.0 4.0 (253.0) 75.0% 3.3% 13.3%

Huntington Bancshares Inc. 454.1 504.9 69.0% 28.0% 3.0% 5.88% 8.00% 12/2009 0.0 0.0 (50.7) 89.9% 1.3% 12.7%

Bank of New York Mellon Corp . 3,871.0 3,390.0 58.0% 34.0% 8.0% 6.21% 8.00% 12/2009 394.0 39.0 481.0 114.2% -1.5% 10.8%

Chubb Corp. 1,558.0 1,900.0 60.0% 36.0% 4.0% 6.00% 8.00% 12/2009 (342.0) 82.0% 1.9% 10.5%

2009

Financials

12/31/092009 2010E *



Marsh & McLennan Cos. $9,142.0 $9,983.0 21.7% 15.3% 63.0% 6.00% 8.10% 12/2009 $419.0 $275.0 (841.0) 91.6% 6.5% 77.1%

AON Corp. 4,906.0 6,639.0 44.8% 45.9% 9.3% 5.60% 8.70% 12/2009 437.0 381.0 (1,733.0) 73.9% 16.3% 62.4%

Wil lis Group Holdings PLC 2,529.0 2,647.0 57.0% 29.0% 14.0% 6.10% 8.00% 12/2009 82.0 130.0 (118.0) 95.5% 2.2% 49.8%

Dun & Bradstreet Corp. 1,214.2 1,665.0 64.0% 32.0% 4.0% 5.71% 8.14% 12/2009 24.4 31.0 (450.8) 72.9% 11.9% 43.8%

Hartford Financial Services Group Inc. 3,526.0 4,283.0 24.5% 68.0% 7.5% 6.00% 7.30% 12/2009 201.0 200.0 (757.0) 82.3% 7.2% 40.5%

Prudential Financial Inc. 9,591.0 8,855.0 13.0% 74.0% 13.0% 5.75% 7.50% 12/2009 109.0 110.0 736.0 108.3% -3.0% 35.7%

CNA Financial Corp. 2,117.0 2,702.0 19.0% 80.0% 1.0% 5.70% 8.00% 12/2009 67.0 62.0 (585.0) 78.3% 7.7% 35.5%

First American Financia l Corp. 203.1 499.4 66.0% 31.7% 2.3% 5.81% 8.00% 12/2008 0.0 28.4 (296.3) 40.7% 19.5% 32.8%

Al lstate Corp. 4,127.0 5,233.0 45.0% 34.0% 21.0% 6.25% 8.50% 12/2009 526.0 340.0 (1,106.0) 78.9% 6.3% 29.9%

The Hanover Insurance Group Inc. 424.5 556.6 43.0% 57.0% 0.0% 6.13% 7.50% 12/2009 48.5 3.6 (132.1) 76.3% 6.4% 26.8%

Unitrin Inc. 312.9 377.0 42.0% 39.0% 19.0% 6.00% 7.00% 12/2008 0.0 0.0 (64.1) 83.0% 4.2% 24.9%

First Horizon National Corp. 496.3 533.5 43.0% 17.0% 40.0% 6.05% 8.05% 12/2009 54.3 0.0 (37.1) 93.0% 1.5% 22.1%

American International Group Inc. 4,112.0 6,000.0 48.0% 27.0% 25.0% 6.00% 7.75% 12/2009 592.0 134.0 (1,888.0) 68.5% 6.9% 21.9%

Principal Financial Group Inc. 1,250.3 1,797.4 70.0% 23.0% 7.0% 6.00% 8.00% 12/2009 95.6 75.0 (547.1) 69.6% 6.5% 21.2%

MetLife Inc. 5,770.0 6,649.0 44.0% 47.0% 9.0% 6.25% 8.25% 12/2009 70.0 150.0 (879.0) 86.8% 2.8% 21.1%

Comerica Inc. 1,338.0 1,369.0 60.0% 40.0% 0.0% 5.92% 8.25% 12/2009 100.0 0.0 (31.0) 97.7% 0.5% 20.5%

Popular Inc. 413.6 557.3 60.8% 35.4% 3.8% 5.90% 8.00% 12/2008 9.2 0.0 (143.7) 74.2% 4.9% 19.1%

Loews Corp. 2,303.0 3,029.0 18.4% 40.6% 41.0% 5.70% 7.75% 12/2009 84.0 75.0 (726.0) 76.0% 4.4% 18.2%

Regions Financia l Corp. (New) 1,252.0 1,586.0 26.0% 50.0% 24.0% 6.02% 8.50% 12/2009 109.0 38.0 (334.0) 78.9% 3.8% 18.1%

Unum Group 1,049.3 1,297.1 57.0% 42.0% 1.0% 6.40% 7.50% 12/2009 79.7 72.3 (247.8) 80.9% 3.4% 17.7%

KeyCorp 839.0 1,202.0 55.0% 30.0% 15.0% 5.25% 8.25% 12/2009 12.0 0.0 (363.0) 69.8% 5.2% 17.1%

American National Insurance Co. 184.5 360.4 46.0% 50.0% 4.0% 5.73% 7.65% 12/2009 24.9 16.0 (175.9) 51.2% 8.3% 17.1%

Lincoln National Corp. 1,149.0 1,339.0 45.7% 54.3% 0.0% 6.00% 8.00% 12/2009 55.0 0.0 (190.0) 85.8% 2.4% 17.0%

SunTrust Banks Inc. 2,334.2 2,007.9 61.0% 37.0% 2.0% 6.01% 8.00% 12/2009 24.9 11.9 326.3 116.2% -2.7% 16.4%

Equifax Inc. 505.4 624.2 67.7% 31.6% 0.7% 5.77% 8.02% 12/2009 32.9 0.0 (118.8) 81.0% 3.0% 15.6%

Assurant Inc. 461.0 658.2 42.0% 50.0% 8.0% 5.94% 7.50% 12/2009 53.1 40.0 (197.2) 70.0% 4.5% 15.0%

Bank of America Corp . 18,374.0 17,484.0 52.1% 33.5% 14.4% 5.69% 8.00% 12/2009 322.0 230.0 890.0 105.1% -0.7% 14.7%

Citigroup Inc. 15,526.0 16,578.0 28.0% 40.0% 32.0% 5.90% 7.75% 12/2009 393.0 160.0 (1,052.0) 93.7% 0.9% 14.6%

PNC Financial Services Group Inc. 3,721.0 3,893.0 59.0% 35.0% 6.0% 5.45% 8.25% 12/2009 24.0 0.0 (172.0) 95.6% 0.6% 14.6%

NYSE Euronext 760.0 1,013.0 60.0% 39.0% 1.0% 5.50% 8.00% 12/2009 9.0 4.0 (253.0) 75.0% 3.3% 13.3%

Huntington Bancshares Inc. 454.1 504.9 69.0% 28.0% 3.0% 5.88% 8.00% 12/2009 0.0 0.0 (50.7) 89.9% 1.3% 12.7%

Bank of New York Mellon Corp . 3,871.0 3,390.0 58.0% 34.0% 8.0% 6.21% 8.00% 12/2009 394.0 39.0 481.0 114.2% -1.5% 10.8%

Chubb Corp. 1,558.0 1,900.0 60.0% 36.0% 4.0% 6.00% 8.00% 12/2009 (342.0) 82.0% 1.9% 10.5%

2009

Financials

12/31/09


13

Financial Services: Companies with Defined Benefit Plans (cont’d) $ in Millions; Ranked by 12/31/09 Pension Liability as % of 10/15/10 Market Capitalization

2009 2010E*

Pension Pension Expected Return Employer Pension Em pl oyer Pension Pension Pension Pension Defi cit as % of Pension Liability as % of

Company P lan Assets Plan Li abi lities % Equi ties % Bonds % Other Discount Rate % on Assets % 10-K Date Contribut ion Cont ribut ion (Defic it)/Surplus Funded Status Mkt Cap at 10/15/2010 M kt Cap at 10/15/2010

BB&T Corp. 2,184.0 1,523.0 65.2% 29.4% 5.4% 6.16% 8.00% 12/2009 480.0 0.0 661.0 143.4% -4.3% 9.8%

M&T Bank Corp. 766.9 857.1 55.5% 40.9% 3.6% 5.75% 6.50% 12/2009 100.2 (90.2) 89.5% 1.0% 9.7%

Travelers Cos. Inc. 2,258.0 2,387.0 67.0% 8.0% 25.0% 5.55% 8.00% 12/2009 273.0 0.0 (129.0) 94.6% 0.5% 9.4%

Wel ls Fargo & Co. 9,112.0 10,719.0 50.0% 40.0% 10.0% 5.75% 8.75% 12/2009 83.0 (1,607.0) 85.0% 1.3% 8.6%

Morgan Stanley 2,406.0 2,630.0 1.8% 64.2% 34.0% 5.91% 5.21% 12/2009 321.0 275.0 (224.0) 91.5% 0.6% 7.5%

Arthur J. Gal lagher & Co. 179.2 206.7 66.0% 28.0% 6.0% 5.75% 7.50% 12/2009 4.0 0.0 (27.5) 86.7% 1.0% 7.3%

Northern Trust Corp. 935.6 862.3 68.0% 16.0% 16.0% 6.02% 7.30% 12/2009 179.2 0.0 73.3 108.5% -0.6% 7.3%

JPMorgan Chase & Co. 12,650.0 10,513.0 37.0% 38.0% 25.0% 6.00% 7.50% 12/2009 2,914.0 171.0 2,137.0 120.3% -1.5% 7.2%

People's United Financial Inc. 273.6 282.6 60.0% 40.0% 0.0% 6.00% 8.25% 12/2009 3.7 0.0 (9 .0) 96.8% 0.2% 6.0%

U.S. Bancorp 2,089.0 2,496.0 96.7% 1.1% 2.2% 6.20% 8.50% 12/2009 19.0 21.0 (407.0) 83.7% 1.0% 5.8%

Torchmark Corp. 211.9 242.2 28.0% 67.0% 5.0% 6.31% 7.95% 12/2009 15.3 20.0 (30.3) 87.5% 0.7% 5.5%

American Express Co. 1,989.0 2,395.0 45.0% 50.0% 5.0% 5.30% 6.90% 12/2009 74.0 64.0 (406.0) 83.0% 0.9% 5.1%

State Street Corp. 828.0 990.0 28.7% 59.4% 11.9% 6.00% 7.25% 12/2009 46.0 29.0 (162.0) 83.6% 0.8% 5.0%

CB Richard Ell is Group Inc. (C l A) 240.0 304.9 63.8% 31.9% 4.3% 5.60% 6.92% 12/2009 3.5 3.7 (64.9) 78.7% 1.0% 4.9%

Cincinnati Financia l Corp. 144.0 221.0 63.9% 36.1% 0.0% 6.10% 8.00% 12/2009 33.0 25.0 (77.0) 65.2% 1.6% 4.5%

Zions Bancorp 98.7 160.0 67.0% 23.0% 10.0% 5.60% 8.30% 12/2009 2.5 (61.3) 61.7% 1.7% 4.4%

Leucadia National Corp. 167.7 235.8 60.0% 40.0% 0.0% 6.00% 12/2009 4.0 20.0 (68.2) 71.1% 1.1% 3.9%

Discover Financial Services 305.6 359.2 38.0% 60.0% 2.0% 5.92% 6.75% 11/2009 0.2 2.7 (53.5) 85.1% 0.6% 3.8%

SLM Corp. 197.1 200.9 0.0% 100.0% 0.0% 5.85% 5.25% 12/2009 5.0 0.0 (3 .8) 98.1% 0.1% 3.7%

Moody' s Corp. 108.2 213.0 60.0% 30.0% 10.0% 5.95% 8.35% 12/2009 8.0 8.2 (104.8) 50.8% 1.7% 3.4%

Ameriprise Financial Inc. 256.0 421.0 50.0% 20.0% 30.0% 5.28% 8.20% 12/2009 36.0 66.0 (165.0) 60.8% 1.3% 3.3%

INVESCO Ltd. 262.9 330.2 34.0% 58.0% 8.0% 5.68% 6.15% 12/2009 8.0 7.9 (67.3) 79.6% 0.6% 3.1%

NASDAQ OMX Group Inc. (The) 57.4 106.4 33.0% 42.0% 25.0% 5.75% 8.00% 12/2009 10.7 (49.0) 53.9% 1.2% 2.6%

Hudson City Bancorp Inc. 143.8 141.8 54.6% 39.3% 6.1% 6.00% 8.25% 12/2009 35.3 10.0 1.9 101.4% 0.0% 2.3%

Fifth Third Bancorp 182.0 217.0 73.0% 24.0% 3.0% 5.88% 8.50% 12/2009 39.0 0.0 (35.0) 83.9% 0.4% 2.3%

Goldman Sachs Group Inc. 1,133.0 1,418.0 67.3% 20.9% 11.8% 5.75% 7.00% 12/2009 50.0 49.0 (285.0) 79.9% 0.4% 1.8%

AFLAC Inc. 283.0 416.0 53.0% 39.0% 8.0% 5.75% 8.00% 12/2009 27.0 38.0 (133.0) 68.0% 0.5% 1.6%

Capital One Financial Corp. 212.7 190.2 69.4% 30.1% 0.5% 5.70% 7.50% 12/2009 0.9 0.9 22.5 111.8% -0.1% 1.1%

XL Group PLC 29.5 57.0 12.8% 12.8% 74.4% 6.00% 8.50% 12/2009 5.6 0.0 (27.5) 51.8% 0.4% 0.8%

CME Group Inc. (Cl A) 107.7 107.5 35.4% 23.8% 40.8% 5.70% 8.00% 12/2009 8.5 14.3 0.2 100.2% 0.0% 0.6%

Totals for All Financials Companies $145,626.8 $158,416.7 48.8% 38.7% 12.5% 5.87% 7.74% $9,242.1 $3,431.9 91.9%

Totals for 12/31/09 Financials Reporting Companies $145,321.2 $158,057.5 49.0% 38.4% 12.6% 5.87% 7.75% $9,241.9 $3,429.2 91.9%



2009 12/31/092009 2010E*



BB&T Corp. 2,184.0 1,523.0 65.2% 29.4% 5.4% 6.16% 8.00% 12/2009 480.0 0.0 661.0 143.4% -4.3% 9.8%

M&T Bank Corp. 766.9 857.1 55.5% 40.9% 3.6% 5.75% 6.50% 12/2009 100.2 (90.2) 89.5% 1.0% 9.7%

Travelers Cos. Inc. 2,258.0 2,387.0 67.0% 8.0% 25.0% 5.55% 8.00% 12/2009 273.0 0.0 (129.0) 94.6% 0.5% 9.4%

Wel ls Fargo & Co. 9,112.0 10,719.0 50.0% 40.0% 10.0% 5.75% 8.75% 12/2009 83.0 (1,607.0) 85.0% 1.3% 8.6%

Morgan Stanley 2,406.0 2,630.0 1.8% 64.2% 34.0% 5.91% 5.21% 12/2009 321.0 275.0 (224.0) 91.5% 0.6% 7.5%

Arthur J. Gal lagher & Co. 179.2 206.7 66.0% 28.0% 6.0% 5.75% 7.50% 12/2009 4.0 0.0 (27.5) 86.7% 1.0% 7.3%

Northern Trust Corp. 935.6 862.3 68.0% 16.0% 16.0% 6.02% 7.30% 12/2009 179.2 0.0 73.3 108.5% -0.6% 7.3%

JPMorgan Chase & Co. 12,650.0 10,513.0 37.0% 38.0% 25.0% 6.00% 7.50% 12/2009 2,914.0 171.0 2,137.0 120.3% -1.5% 7.2%

People's United Financial Inc. 273.6 282.6 60.0% 40.0% 0.0% 6.00% 8.25% 12/2009 3.7 0.0 (9 .0) 96.8% 0.2% 6.0%

U.S. Bancorp 2,089.0 2,496.0 96.7% 1.1% 2.2% 6.20% 8.50% 12/2009 19.0 21.0 (407.0) 83.7% 1.0% 5.8%

Torchmark Corp. 211.9 242.2 28.0% 67.0% 5.0% 6.31% 7.95% 12/2009 15.3 20.0 (30.3) 87.5% 0.7% 5.5%

American Express Co. 1,989.0 2,395.0 45.0% 50.0% 5.0% 5.30% 6.90% 12/2009 74.0 64.0 (406.0) 83.0% 0.9% 5.1%

State Street Corp. 828.0 990.0 28.7% 59.4% 11.9% 6.00% 7.25% 12/2009 46.0 29.0 (162.0) 83.6% 0.8% 5.0%

CB Richard Ell is Group Inc. (C l A) 240.0 304.9 63.8% 31.9% 4.3% 5.60% 6.92% 12/2009 3.5 3.7 (64.9) 78.7% 1.0% 4.9%

Cincinnati Financia l Corp. 144.0 221.0 63.9% 36.1% 0.0% 6.10% 8.00% 12/2009 33.0 25.0 (77.0) 65.2% 1.6% 4.5%

Zions Bancorp 98.7 160.0 67.0% 23.0% 10.0% 5.60% 8.30% 12/2009 2.5 (61.3) 61.7% 1.7% 4.4%

Leucadia National Corp. 167.7 235.8 60.0% 40.0% 0.0% 6.00% 12/2009 4.0 20.0 (68.2) 71.1% 1.1% 3.9%

Discover Financial Services 305.6 359.2 38.0% 60.0% 2.0% 5.92% 6.75% 11/2009 0.2 2.7 (53.5) 85.1% 0.6% 3.8%

SLM Corp. 197.1 200.9 0.0% 100.0% 0.0% 5.85% 5.25% 12/2009 5.0 0.0 (3 .8) 98.1% 0.1% 3.7%

Moody' s Corp. 108.2 213.0 60.0% 30.0% 10.0% 5.95% 8.35% 12/2009 8.0 8.2 (104.8) 50.8% 1.7% 3.4%

Ameriprise Financial Inc. 256.0 421.0 50.0% 20.0% 30.0% 5.28% 8.20% 12/2009 36.0 66.0 (165.0) 60.8% 1.3% 3.3%

INVESCO Ltd. 262.9 330.2 34.0% 58.0% 8.0% 5.68% 6.15% 12/2009 8.0 7.9 (67.3) 79.6% 0.6% 3.1%

NASDAQ OMX Group Inc. (The) 57.4 106.4 33.0% 42.0% 25.0% 5.75% 8.00% 12/2009 10.7 (49.0) 53.9% 1.2% 2.6%

Hudson City Bancorp Inc. 143.8 141.8 54.6% 39.3% 6.1% 6.00% 8.25% 12/2009 35.3 10.0 1.9 101.4% 0.0% 2.3%

Fifth Third Bancorp 182.0 217.0 73.0% 24.0% 3.0% 5.88% 8.50% 12/2009 39.0 0.0 (35.0) 83.9% 0.4% 2.3%

Goldman Sachs Group Inc. 1,133.0 1,418.0 67.3% 20.9% 11.8% 5.75% 7.00% 12/2009 50.0 49.0 (285.0) 79.9% 0.4% 1.8%

AFLAC Inc. 283.0 416.0 53.0% 39.0% 8.0% 5.75% 8.00% 12/2009 27.0 38.0 (133.0) 68.0% 0.5% 1.6%

Capital One Financial Corp. 212.7 190.2 69.4% 30.1% 0.5% 5.70% 7.50% 12/2009 0.9 0.9 22.5 111.8% -0.1% 1.1%

XL Group PLC 29.5 57.0 12.8% 12.8% 74.4% 6.00% 8.50% 12/2009 5.6 0.0 (27.5) 51.8% 0.4% 0.8%

CME Group Inc. (Cl A) 107.7 107.5 35.4% 23.8% 40.8% 5.70% 8.00% 12/2009 8.5 14.3 0.2 100.2% 0.0% 0.6%

Totals for All Financials Companies $145,626.8 $158,416.7 48.8% 38.7% 12.5% 5.87% 7.74% $9,242.1 $3,431.9 91.9%

Totals for 12/31/09 Financials Reporting Companies $145,321.2 $158,057.5 49.0% 38.4% 12.6% 5.87% 7.75% $9,241.9 $3,429.2 91.9%



2009 12/31/09


14

Healthcare: Companies with Defined Benefit Pensions $ in Millions; Ranked by 12/31/09 Pension Liability as % of 10/15/10 Market Capitalization

2009 2010E* 12/31/09



CIGNA Corp. $2,850.0 $4,363.0 69.8% 24.6% 5.6% 5.50% 8.00% 12/2009 $412.0 $70.0 ($1,513.0) 65.3% 15.4% 44.5%

Aetna Inc. 4,394.9 5,346.1 8.0% 87.0% 5.0% 5.89% 4.51% 12/2009 71.6 45.0 (951.2) 82.2% 7.2% 40.4%

Eli Lilly & Co. 6,008.5 7,553.9 86.0% 10.0% 4.0% 5.90% 8.80% 12/2009 447.6 100.0 (1,545.4) 79.5% 3.7% 18.2%

PerkinElmer Inc. 255.6 484.3 50.0% 33.0% 17.0% 5.50% 8.50% 12/2009 11.4 31.5 (228.7) 52.8% 8.4% 17.7%

Pfizer Inc. 16,501.0 23,008.0 48.0% 34.0% 18.0% 6.30% 8.50% 12/2009 540.0 655.0 (6,507.0) 71.7% 4.6% 16.1%

Baxter International Inc. 2,822.0 3,965.0 68.4% 25.8% 5.8% 6.05% 8.50% 12/2009 170.0 335.0 (1,143.0) 71.2% 4.0% 13.9%

Bristol-Myers Squibb Co. 5,103.0 6,386.0 60.4% 22.5% 17.2% 5.62% 8.24% 12/2009 789.0 430.0 (1,283.0) 79.9% 2.8% 13.7%

Merck & Co Inc 10,834.7 13,183.3 60.3% 35.0% 4.7% 5.90% 8.75% 12/2009 868.7 950.0 (2,348.6) 82.2% 2.1% 11.6%

Life Technologies Corp. 707.4 844.4 56.0% 36.0% 8.0% 6.00% 6.88% 12/2009 36.0 36.3 (137.0) 83.8% 1.6% 9.8%

Becton Dickinson & Co. 1,209.1 1,635.3 49.6% 37.7% 12.7% 5.90% 8.00% 09/2009 140.3 175.0 (426.2) 73.9% 2.4% 9.3%

Abbott Laboratories 5,812.0 6,852.0 70.0% 30.0% 0.0% 5.80% 8.20% 12/2009 862.0 200.0 (1,040.0) 84.8% 1.3% 8.3%

Johnson & Johnson 10,923.0 13,449.0 70.5% 29.0% 0.5% 6.50% 9.00% 12/2009 1,354.0 66.0 (2,526.0) 81.2% 1.4% 7.7%

WellPoint Inc. 1,703.5 1,751.5 54.0% 35.0% 11.0% 5.36% 8.00% 12/2009 103.6 (48.0) 97.3% 0.2% 7.5%

Thermo Fisher Scientific Inc. 822.1 1,003.5 47.0% 35.0% 18.0% 5.50% 7.75% 12/2009 38.6 30.0 (181.4) 81.9% 0.9% 5.0%

Hospira Inc. 340.1 456.7 60.0% 40.0% 0.0% 5.80% 8.30% 12/2009 31.7 (116.6) 74.5% 1.2% 4.7%

C.R. Bard Inc. 239.1 348.6 63.0% 33.0% 4.0% 5.62% 8.10% 12/2009 26.7 25.0 (109.5) 68.6% 1.4% 4.4%

Dentsply International Inc. 88.9 192.0 32.0% 58.0% 10.0% 4.70% 5.20% 12/2009 10.1 8.0 (103.1) 46.3% 2.3% 4.2%

Laboratory Corp. of America Holdings 259.3 328.0 55.0% 45.0% 0.0% 5.80% 7.50% 12/2009 55.9 0.0 (68.7) 79.1% 0.8% 4.0%

Zimmer Holdings Inc. 381.1 384.9 43.0% 40.0% 17.0% 6.26% 7.75% 12/2009 52.6 44.0 (3.8) 99.0% 0.0% 3.7%

Medtronic Inc. 1,124.0 1,215.0 43.4% 18.2% 38.4% 8.25% 8.75% 04/2010 128.0 (91.0) 92.5% 0.3% 3.4%

Allergan Inc. 559.9 655.2 53.5% 45.3% 1.3% 6.04% 8.25% 12/2009 12.9 40.0 (95.3) 85.5% 0.5% 3.1%

McKesson Corp. 309.0 456.0 52.0% 36.0% 12.0% 7.74% 7.75% 03/2010 18.0 7.0 (147.0) 67.8% 0.9% 2.8%

Waters Corp. 93.6 134.6 59.0% 28.0% 13.0% 5.95% 7.95% 12/2009 10.1 5.0 (41.0) 69.5% 0.6% 2.0%

Varian Medical Systems Inc. 99.8 121.0 35.0% 58.0% 7.0% 4.17% 5.42% 09/2009 5.3 4.2 (21.2) 82.5% 0.3% 1.6%

King Pharmaceuticals Inc. 40.9 51.5 26.0% 73.0% 1.0% 6.00% 6.30% 12/2009 0.1 0.1 (10.6) 79.4% 0.3% 1.5%

AmerisourceBergen Corp. 81.3 128.9 49.0% 51.0% 0.0% 5.55% 8.00% 09/2009 3.0 9.0 (47.6) 63.1% 0.5% 1.4%

Stryker Corp. 177.3 262.4 57.0% 26.0% 17.0% 4.70% 5.80% 12/2009 20.4 19.0 (85.1) 67.6% 0.4% 1.3%

Medco Health Solutions Inc. 147.6 214.5 70.0% 30.0% 0.0% 5.70% 8.25% 12/2009 11.5 30.3 (66.9) 68.8% 0.3% 0.9%

Genzyme Corp. 65.1 108.4 77.0% 9.0% 14.0% 5.67% 7.64% 12/2009 4.4 9.0 (43.2) 60.1% 0.2% 0.6%

Totals for All Healtcare Companies $73,953.8 $94,883.1 54.7% 36.4% 9.0% 5.85% 7.68% $6,235.4 $3,338.1 77.9%

Totals for 12/31/09 Healthcare Reporting Companies $71,130.6 $91,326.8 56.4% 35.6% 8.0% 5.75% 7.69% $5,940.8 $3,142.9 77.9%



2009

Healthcare


15

Industrials: Companies with Defined Benefit Plans $ in Millions; Ranked by 12/31/09 Pension Liability as % of 10/15/10 Market Capitalization

2009 2010E* 12/31/09



GenCorp Inc. $1,335.5 $1,561.6 27.0% 28.0% 45.0% 5.65% 8.00% 11/2009 $5.8 $0.0 ($226.1) 85.5% 75.7% 523.0%

Goodyear Tire & Rubber Co. 5,343.0 8,058.0 53.0% 42.0% 5.0% 5.75% 8.50% 12/2009 371.0 325.0 (2,715.0) 66.3% 95.3% 282.9%

Ford Motor Co. 56,021.0 67,983.0 45.9% 46.3% 7.8% 5.86% 8.25% 12/2009 900.0 1,100.0 (11,962.0) 82.4% 25.0% 142.1%

Northrop Grumman Corp. 20,973.0 23,723.0 35.0% 42.5% 22.5% 6.03% 8.50% 12/2009 858.0 357.0 (2,750.0) 88.4% 15.1% 130.1%

Lockheed Martin Corp. 22,154.0 32,817.0 53.0% 32.0% 15.0% 5.88% 8.50% 12/2009 1,482.0 0.0 (10,663.0) 67.5% 41.9% 129.0%

TRW Automotive Holdings Corp. 5,828.0 6,476.0 54.6% 12.7% 32.7% 6.00% 8.50% 12/2009 86.0 91.0 (648.0) 90.0% 12.6% 125.7%

ArvinMeritor Inc. 1,336.0 1,853.0 54.0% 39.0% 7.0% 5.70% 8.50% 09/2009 32.0 51.0 (517.0) 72.1% 33.3% 119.4%

Dana Holding Corp. 1,537.0 2,182.0 27.7% 64.4% 7.9% 5.79% 7.50% 12/2009 13.0 13.0 (645.0) 70.4% 34.2% 115.6%

Navistar International Corp. 2,317.0 3,825.0 66.0% 34.0% 0.0% 5.40% 9.00% 10/2009 37.0 153.0 (1,508.0) 60.6% 43.0% 109.2%

Alliant Techsystems Inc. 2,000.9 2,628.3 40.1% 32.2% 27.7% 5.90% 8.00% 03/2010 319.9 4.8 (627.4) 76.1% 25.6% 107.2%

Raytheon Co. 12,839.0 17,441.0 39.0% 55.0% 6.0% 6.23% 8.62% 12/2009 1,115.0 1,140.0 (4,602.0) 73.6% 27.0% 102.4%

Boeing Co. 45,810.0 52,166.0 34.0% 50.0% 16.0% 5.80% 8.00% 12/2009 1,582.0 100.0 (6,356.0) 87.8% 12.2% 100.0%

Briggs & Stratton Corp. 797.3 938.3 27.0% 27.0% 46.0% 6.75% 8.75% 06/2010 2.0 0.0 (141.0) 85.0% 14.8% 98.8%

American Axle & Manufacturing Holdings Inc. 358.7 619.6 50.5% 46.1% 3.4% 6.10% 8.00% 12/2009 24.9 25.0 (260.9) 57.9% 40.8% 97.0%

Cooper Tire & Rubber Co. 868.2 1,140.1 64.0% 35.0% 1.0% 5.74% 8.22% 12/2009 51.6 40.0 (271.9) 76.1% 21.6% 90.4%

Textron Inc. 3,783.0 5,226.0 53.0% 15.0% 32.0% 6.19% 8.58% 12/2009 51.0 20.0 (1,443.0) 72.4% 24.7% 89.4%

Kaman Corp. 387.5 562.8 35.0% 28.0% 37.0% 5.85% 8.00% 12/2009 18.3 11.6 (175.3) 68.9% 25.6% 82.1%

Alliant Techsystems Inc. 1,435.5 1,991.3 42.8% 27.2% 30.0% 8.15% 9.00% 03/2010 319.9 4.8 (555.8) 72.1% 22.7% 81.2%

Timken Co. 2,079.8 2,767.6 61.0% 39.0% 0.0% 6.00% 8.75% 12/2009 62.6 135.0 (687.8) 75.1% 17.5% 70.6%

Federal-Mogul Corp. 635.0 1,423.0 70.0% 24.0% 6.0% 5.75% 8.50% 12/2009 25.0 105.0 (788.0) 44.6% 37.6% 67.9%

ITT Corp. 4,307.8 5,699.7 42.0% 4.0% 54.0% 5.98% 8.87% 12/2009 161.0 15.0 (1,391.9) 75.6% 15.9% 65.0%

Albany International Corp. (Cl A) 247.1 358.0 33.0% 37.5% 29.5% 5.82% 8.50% 12/2009 28.7 12.3 (110.9) 69.0% 17.7% 57.2%

Honeywell International Inc. 13,765.0 17,886.0 62.0% 24.0% 14.0% 5.75% 9.00% 12/2009 1,059.0 550.0 (4,121.0) 77.0% 11.6% 50.2%

Colfax Corp 209.9 328.3 51.0% 34.0% 15.0% 5.70% 8.30% 12/2009 7.5 5.5 (118.4) 63.9% 17.4% 48.2%

Pitney Bowes Inc. 1,764.4 2,107.4 60.0% 37.0% 3.0% 5.75% 8.00% 12/2009 148.1 40.0 (343.1) 83.7% 7.6% 46.6%

A.O. Smith Corp. 594.0 826.7 65.0% 30.0% 5.0% 5.80% 8.75% 12/2009 50.8 0.0 (232.7) 71.9% 13.1% 46.5%

Teledyne Technologies Inc. 584.5 669.3 54.0% 46.0% 0.0% 6.25% 8.25% 12/2009 118.2 37.0 (84.8) 87.3% 5.6% 44.1%

KBR Inc. 1,288.0 1,608.0 45.9% 49.0% 5.1% 5.35% 7.63% 12/2009 23.0 14.0 (320.0) 80.1% 8.0% 40.3%

Barnes Group Inc. 325.4 388.4 68.0% 25.0% 7.0% 6.10% 8.53% 12/2009 25.5 11.0 (63.0) 83.8% 6.5% 40.2%

SPX Corp. 920.3 1,362.0 53.0% 28.0% 19.0% 5.80% 8.50% 12/2009 0.0 23.0 (441.7) 67.6% 13.0% 40.2%

Goodrich Corp. 2,784.1 3,702.9 54.0% 40.0% 6.0% 5.90% 8.75% 12/2009 237.5 150.0 (918.8) 75.2% 9.5% 38.1%

Foster Wheeler AG 968.3 1,148.8 49.0% 47.0% 4.0% 5.67% 8.25% 12/2009 71.4 33.7 (180.5) 84.3% 5.7% 36.0%

Tenneco Inc. 461.0 674.0 71.0% 29.0% 0.0% 6.10% 8.80% 12/2009 27.0 54.0 (213.0) 68.4% 11.3% 35.7%

2009

Industrials


16

Industrials: Companies with Defined Benefit Plans (cont’d) $ in Millions; Ranked by 12/31/09 Pension Liability as % of 10/15/10 Market Capitalization

2009 2010E* 12/31/09



Snap-On Inc. 716.2 968.7 55.0% 15.0% 30.0% 5.90% 7.80% 12/2009 9.8 10.5 (252.5) 73.9% 9.0% 34.6%

Mine Safety Appliances Co. 342.9 330.8 69.0% 21.0% 10.0% 5.80% 8.30% 12/2009 3.1 3.9 12.1 103.7% -1.3% 34.2%

General Dynamics Corp. 5,673.0 8,127.0 68.8% 29.2% 2.0% 6.42% 8.08% 12/2009 298.0 300.0 (2,454.0) 69.8% 10.2% 33.8%

Moog Inc. (Cl A) 376.5 568.5 72.6% 27.1% 0.3% 6.00% 8.90% 09/2009 36.4 28.9 (192.0) 66.2% 11.3% 33.6%

NACCO Industries Inc. (Cl A) 197.9 273.4 69.0% 31.0% 0.0% 5.78% 8.50% 12/2009 11.6 14.1 (75.5) 72.4% 9.0% 32.7%

United Technologies Corp. 19,377.0 22,271.0 46.2% 36.4% 17.4% 5.90% 8.20% 12/2009 1,308.0 600.0 (2,894.0) 87.0% 4.2% 32.3%

Rockwell Automation Inc. 2,207.8 2,806.9 52.0% 39.0% 9.0% 6.20% 8.00% 09/2009 35.8 29.0 (599.1) 78.7% 6.8% 31.9%

Lincoln Electric Holdings Inc. 636.8 777.5 92.0% 8.0% 0.0% 5.80% 8.20% 12/2009 46.1 30.0 (140.8) 81.9% 5.7% 31.5%

General Electric Co. 49,016.0 57,714.0 63.0% 27.0% 10.0% 5.55% 7.90% 12/2009 844.0 600.0 (8,698.0) 84.9% 4.7% 31.5%

Rockwell Collins Inc. 1,928.0 2,968.0 65.0% 34.0% 1.0% 5.47% 8.75% 09/2009 139.0 13.0 (1,040.0) 65.0% 11.0% 31.3%

Caterpillar Inc. 11,826.0 15,606.0 67.0% 26.0% 7.0% 5.70% 8.50% 12/2009 1,149.0 1,000.0 (3,780.0) 75.8% 7.5% 31.0%

Herman Miller Inc. 225.9 347.2 57.3% 38.9% 3.9% 6.75% 8.50% 05/2010 18.3 14.8 (121.3) 65.1% 10.7% 30.7%

Curtiss-Wright Corp. 350.4 443.8 66.0% 34.0% 0.0% 5.89% 8.15% 12/2009 6.7 5.5 (93.4) 78.9% 6.5% 30.7%

Deere & Co. 8,401.0 9,708.0 38.0% 38.0% 24.0% 5.50% 8.30% 10/2009 233.0 256.0 (1,307.0) 86.5% 4.1% 30.5%

Parker Hannifin Corp. 2,020.2 3,430.8 56.0% 37.0% 7.0% 5.30% 8.50% 06/2010 153.3 250.0 (1,410.6) 58.9% 12.3% 29.9%

Avery Dennison Corp. 869.8 1,159.4 56.5% 38.0% 5.5% 6.00% 8.75% 12/2009 50.0 20.8 (289.6) 75.0% 7.2% 28.7%

Ingersoll-Rand Plc 2,695.9 3,598.9 45.8% 54.2% 0.0% 5.75% 7.75% 12/2009 113.5 85.0 (903.0) 74.9% 7.2% 28.7%

GATX Corp. 354.4 402.9 67.5% 27.8% 4.7% 5.70% 8.68% 12/2009 47.1 16.7 (48.5) 88.0% 3.4% 28.0%

Crane Co. 566.9 641.0 50.0% 39.0% 11.0% 6.10% 8.75% 12/2009 33.4 16.0 (74.2) 88.4% 3.2% 27.6%

Manitowoc Co. 339.2 384.9 21.0% 74.0% 5.0% 6.00% 5.80% 12/2009 9.4 4.4 (45.7) 88.1% 3.1% 25.8%

Eaton Corp. 2,042.0 3,610.0 75.0% 21.0% 4.0% 6.00% 8.95% 12/2009 271.0 402.0 (1,568.0) 56.6% 11.2% 25.7%

Kennametal Inc. 606.9 687.7 36.0% 60.0% 4.0% 6.50% 8.00% 06/2010 7.0 7.5 (80.8) 88.2% 3.0% 25.6%

3M Co. 14,390.0 16,076.0 30.0% 32.0% 38.0% 5.77% 8.50% 12/2009 1,259.0 700.0 (1,686.0) 89.5% 2.7% 25.3%

Masco Corp. 474.0 958.0 71.0% 26.0% 3.0% 5.80% 8.00% 12/2009 27.0 25.0 (484.0) 49.5% 12.3% 24.3%

L-3 Communications Holdings Inc. 1,304.0 1,964.0 61.0% 28.0% 11.0% 6.30% 8.75% 12/2009 67.0 140.0 (660.0) 66.4% 8.1% 24.1%

Thomas & Betts Corp. 419.7 533.4 62.0% 27.0% 11.0% 5.63% 8.75% 12/2009 53.5 0.0 (113.7) 78.7% 4.9% 23.2%

Spirit AeroSystems Holdings Inc. (Cl A) 855.6 685.3 56.0% 40.0% 4.0% 6.15% 8.00% 12/2009 7.6 0.0 170.3 124.9% -5.6% 22.6%

Alexander & Baldwin Inc. 260.0 322.0 72.0% 15.0% 13.0% 6.25% 8.50% 12/2009 0.0 0.5 (62.0) 80.7% 4.3% 22.3%

Stanley Black & Decker Inc.# 1,421.4 2,230.7 66.5% 31.0% 2.5% 5.69% 7.67% 1/2010 81.6 26.6 (809.3) 63.7% 7.8% 21.4%

Joy Global Inc. 982.4 1,561.5 54.0% 29.0% 17.0% 5.55% 8.30% 10/2009 26.8 100.0 (579.1) 62.9% 7.7% 20.8%

Hubbell Inc. (Cl B) 575.8 647.0 50.0% 50.0% 0.0% 5.96% 8.00% 12/2009 30.0 5.0 (71.2) 89.0% 2.2% 20.1%

Jacobs Engineering Group Inc. 679.5 991.5 45.0% 37.0% 18.0% 4.05% 5.15% 09/2009 48.5 38.6 (312.0) 68.5% 6.2% 19.8%

AGCO Corp. 489.2 731.3 39.0% 28.5% 32.5% 6.60% 7.00% 12/2009 28.4 30.1 (242.1) 66.9% 6.2% 18.8%

AECOM Technology Corp. 410.4 542.9 50.0% 39.0% 11.0% 5.70% 8.00% 09/2009 45.4 21.4 (132.5) 75.6% 4.6% 18.8%

2009

# All data combines 2009 10-K data for Stanley Works and Black & Decker Corp. The discount rate, asset allocation and expected return on assets reflect a weighted average of the two companies’ plans


17

Industrials: Companies with Defined Benefit Plans (cont’d) $ in Millions; Ranked by 12/31/09 Pension Liability as % of 10/15/10 Market Capitalization

2009 2010E* 12/31/09



Terex Corp. 181.4 478.3 44.0% 55.0% 1.0% 5.75% 8.00% 12/2009 18.3 23.0 (296.9) 37.9% 11.5% 18.5%

Johnson Controls Inc. 2,947.0 4,033.0 58.0% 32.0% 10.0% 6.25% 8.50% 09/2009 293.0 245.0 (1,086.0) 73.1% 4.9% 18.4%

Esterline Technologies Corp. 230.2 313.1 58.0% 36.0% 6.0% 6.06% 7.88% 10/2009 25.5 0.0 (82.9) 73.5% 4.6% 17.5%

Trinity Industries Inc. 257.6 326.1 61.5% 38.5% 0.0% 6.10% 7.75% 12/2009 19.3 12.3 (68.5) 79.0% 3.6% 17.2%

Mettler-Toledo International Inc. 667.1 720.0 22.8% 68.7% 8.5% 5.50% 8.25% 12/2009 29.6 17.6 (52.9) 92.7% 1.3% 17.2%

Harley-Davidson Inc. 1,026.1 1,284.7 60.6% 39.4% 0.0% 6.00% 8.25% 12/2009 223.0 0.0 (258.6) 79.9% 3.4% 17.1%

Cummins Inc. 2,606.0 3,128.0 59.1% 34.6% 6.3% 5.60% 8.25% 12/2009 121.0 185.0 (522.0) 83.3% 2.8% 17.0%

Pentair Inc. 329.2 552.3 53.0% 22.0% 25.0% 6.00% 8.50% 12/2009 49.0 15.0 (223.1) 59.6% 6.5% 16.1%

Vulcan Materials Co. 493.6 709.8 47.0% 33.0% 20.0% 5.45% 8.25% 12/2009 27.6 72.5 (216.1) 69.5% 4.6% 15.2%

EMCOR Group Inc. 174.4 253.7 71.0% 28.0% 1.0% 5.70% 6.80% 12/2009 8.2 8.0 (79.3) 68.7% 4.7% 15.1%

Fluor Corp. 1,192.2 1,198.8 35.0% 60.0% 5.0% 6.13% 6.50% 12/2009 33.7 90.0 (6.6) 99.4% 0.1% 12.8%


Tyco International Ltd. 1,581.0 2,203.0 57.0% 40.0% 3.0% 5.50% 8.00% 09/2009 83.0 80.0 (622.0) 71.8% 3.3% 11.5%

Martin Marietta Materials Inc. 266.8 392.7 54.0% 46.0% 0.0% 5.90% 7.75% 12/2009 24.6 40.6 (125.9) 67.9% 3.5% 11.0%

Pall Corp. 307.2 543.1 51.0% 32.0% 17.0% 6.00% 7.00% 07/2010 47.3 47.0 (235.9) 56.6% 4.7% 10.8%

BorgWarner Inc. 413.1 643.0 51.0% 40.0% 9.0% 5.75% 7.50% 12/2009 39.3 20.0 (229.9) 64.2% 3.8% 10.5%

Gardner Denver Inc. 197.8 291.9 57.5% 32.0% 10.5% 5.70% 7.80% 12/2009 4.5 7.5 (94.0) 67.8% 3.3% 10.1%

URS Corp. 190.5 333.0 52.0% 46.0% 2.0% 6.05% 8.00% 12/2009 20.9 16.8 (142.6) 57.2% 4.3% 10.1%

Emerson Electric Co. 3,456.0 4,066.0 62.0% 32.0% 6.0% 5.50% 8.00% 09/2009 303.0 188.0 (610.0) 85.0% 1.5% 10.0%

Flowserve Corp. 427.2 606.7 55.0% 44.0% 1.0% 5.50% 7.75% 12/2009 101.2 50.0 (179.6) 70.4% 2.9% 9.7%

Donaldson Co. Inc. 297.5 338.2 43.0% 30.0% 27.0% 6.00% 8.50% 07/2010 15.1 3.9 (40.7) 88.0% 1.1% 9.2%

Illinois Tool Works Inc. 1,760.0 2,193.6 37.0% 58.0% 5.0% 5.57% 8.28% 12/2009 217.8 63.1 (433.7) 80.2% 1.8% 8.9%

Cooper Industries PLC (Cl A) 570.7 746.0 51.0% 33.0% 16.0% 5.63% 7.13% 12/2009 31.8 10.4 (175.3) 76.5% 2.1% 8.8%

Precision Castparts Corp. 1,473.2 1,490.3 38.0% 25.0% 37.0% 6.25% 8.00% 03/2010 211.8 112.5 (17.1) 98.9% 0.1% 8.0%

Paccar Inc. 1,276.3 1,324.8 56.0% 41.4% 2.6% 5.90% 7.40% 12/2009 173.4 75.0 (48.5) 96.3% 0.3% 7.2%

Danaher Corp. 1,291.1 1,955.4 26.0% 34.0% 40.0% 5.75% 8.00% 12/2009 93.2 34.0 (664.3) 66.0% 2.4% 7.2%

Dover Corp. 467.6 668.6 60.0% 34.0% 6.0% 5.95% 7.37% 12/2009 77.5 47.9 (200.9) 69.9% 2.0% 6.6%

Avnet Inc. 258.9 263.3 77.0% 23.0% 0.0% 6.25% 9.00% 06/2010 41.8 41.8 (4.4) 98.3% 0.1% 6.3%

Autoliv Inc. 196.2 305.4 44.3% 44.1% 11.6% 5.80% 7.50% 12/2009 22.2 5.4 (109.2) 64.2% 1.8% 5.0%

Totals for All Industrials Companies $373,858.6 $467,874.3 53.0% 35.5% 11.5% 5.89% 8.14% $18,211.8 $10,929.3 79.9%

Totals for 12/31/09 Reporting Industrials $336,246.9 $418,213.9 53.6% 36.0% 10.4% 5.88% 8.13% $15,731.3 $9,238.3 80.4%


Totals for 12/31/09 Reporting S&P 500 $1,063,246.7 $1,293,598.2 54.5% 36.0% 9.9% 5.82% 7.94% $60,029.7 $26,600.8 82.2%

2009


18

Media/Telecommunications: Companies with Defined Benefit Plans $ in Millions; Ranked by 12/31/09 Pension Liability as % of 10/15/10 Market Capitalization

2009 2010E*

Pension Pension Expected Return Em ployer Pens ion Employer Pension Pension Pension Pension Def ici t as % of Pension Liability as % of

Company Pl an Assets P lan Liabili ties % Equit ies % Bonds % Other Discount Rate % on Assets % 10-K Date Cont ribution Contribution (Defi cit )/Surplus Funded S tatus M kt Cap at 10/15/2010 M kt Cap at 10/15/2010

New York Times Co. (Cl A) $1,150.9 $1,901.8 69.0% 31.0% 0.0% 6.30% 8.75% 12/2009 $29.8 $108.0 ($750.9) 60.5% 61.5% 155.7%

Gannett Co. Inc. 2 ,375.8 3,088.4 59.0% 30.0% 11.0% 5.90% 8.75% 12/2009 45.2 23.4 (712.6) 76.9% 23.6% 102.3%

Cincinnati Bell Inc. 325.4 506.3 53.1% 45.3% 1.6% 5.50% 8.25% 12/2009 52.2 8.0 (180.9) 64.3% 34.7% 97.2%

E.W. Scripps Co. (Cl A) 326.9 453.7 49.0% 46.0% 5.0% 5.97% 7.50% 12/2009 26.7 2.1 (126.8) 72.0% 26.4% 94.6%

R.R. Donnel ley & Sons Co. 2 ,654.4 3,168.1 65.0% 28.0% 7.0% 6.00% 8.30% 12/2009 22.2 21.8 (513.7) 83.8% 13.8% 84.8%

Belo Corp. (Series A) 345.2 541.6 71.8% 27.5% 0.7% 6.18% 8.50% 12/2009 0.0 14.3 (196.3) 63.7% 29.3% 80.7%

Qwest Communications Internationa l Inc. 7 ,326.0 8,147.0 38.0% 34.0% 28.0% 5.80% 8.00% 12/2009 0.0 0.0 (821.0) 89.9% 7.4% 73.6%

CBS Corp (Cl B) 3 ,482.8 4,897.2 21.5% 71.0% 7.5% 5.70% 7.00% 12/2009 68.2 52.0 (1,414.4) 71.1% 11.9% 41.3%

CenturyLink Inc. 3 ,219.7 4,181.6 49.3% 28.8% 21.9% 5.75% 8.38% 12/2009 175.9 300.0 (961.9) 77.0% 8.0% 34.7%

Verizon Communications Inc. 28,592.0 31,818.0 63.0% 19.0% 18.0% 6.25% 8.50% 12/2009 337.0 140.0 (3,226.0) 89.9% 3.5% 34.6%

Frontier Communications Corp. 608.6 890.6 38.0% 51.0% 11.0% 5.75% 8.00% 12/2009 0.0 10.0 (282.0) 68.3% 10.4% 32.9%

Washington Post Co. (Cl B) 1 ,440.8 1,105.2 82.0% 18.0% 0.0% 6.00% 6.50% 12/2009 0.0 0.0 335.6 130.4% -9.6% 31.7%

AT&T Inc. 46,873.0 50,850.0 50.0% 30.0% 20.0% 6.50% 8.50% 12/2009 2.0 0.0 (3,977.0) 92.2% 2.4% 30.3%

Loral Space & Communications Inc. 256.2 420.1 59.0% 41.0% 0.0% 6.00% 8.00% 12/2009 22.5 24.9 (163.9) 61.0% 10.0% 25.5%

Windstream Corp. 784.0 1,060.7 53.0% 38.2% 8.8% 5.89% 8.00% 12/2009 3.3 0.7 (276.7) 73.9% 4.6% 17.7%

Thomson Reuters Corporation 4,467.0 4,926.2 42.0% 53.0% 5.0% 5.72% 6.81% 12/2009 59.8 0.0 (459.2) 90.7% 1.4% 15.4%

McGraw-Hill Cos. 1 ,277.0 1,569.4 75.0% 19.0% 6.0% 5.95% 8.00% 12/2009 78.0 30.3 (292.4) 81.4% 2.7% 14.3%

John Wiley & Sons Inc. (Cl A) 229.9 322.6 46.0% 51.0% 3.0% 7.05% 7.40% 04/2010 48.2 11.7 (92.7) 71.3% 3.6% 12.4%

Interpubl ic Group Of Cos. 391.3 603.6 22.0% 45.0% 33.0% 5.53% 8.16% 12/2009 32.0 40.7 (212.3) 64.8% 4.1% 11.6%

CommScope Inc. 195.0 243.4 55.0% 45.0% 0.0% 5.90% 6.70% 12/2009 15.4 3.0 (48.4) 80.1% 2.3% 11.5%

Wal t Disney Co. 4 ,833.0 6,992.0 44.0% 38.0% 18.0% 5.75% 7.75% 09/2009 468.0 400.0 (2,159.0) 69.1% 3.2% 10.4%

Time Warner Inc. 2 ,962.0 3,412.0 61.1% 29.9% 9.0% 5.79% 8.00% 12/2009 73.0 55.0 (450.0) 86.8% 1.3% 9.6%

Time Warner Cable Inc. 1 ,595.0 1,552.0 43.9% 12.3% 43.8% 6.16% 8.00% 12/2009 170.0 55.0 43.0 102.8% -0.2% 7.8%

News Corp. (Cl A) 2 ,018.0 2,501.0 41.0% 39.0% 20.0% 7.00% 7.00% 06/2010 338.0 50.0 (483.0) 80.7% 1.3% 6.8%

Meredith Corp. 95.4 104.0 69.0% 31.0% 0.0% 5.75% 8.25% 06/2010 10.6 1.2 (8.6) 91.7% 0.6% 6.7%

Cablevision Systems Corp. 244.5 391.4 0.0% 37.0% 63.0% 5.17% 4.00% 12/2009 53.5 53.0 (146.9) 62.5% 1.8% 4.8%

Moody' s Corp. 108.2 213.0 60.0% 30.0% 10.0% 5.95% 8.35% 12/2009 8.0 8.2 (104.8) 50.8% 1.7% 3.4%

Viacom Inc. (Cl B) 414.0 659.0 69.0% 31.0% 0.0% 6.30% 8.00% 12/2009 119.0 25.0 (245.0) 62.8% 1.1% 2.9%

DIRECTV 374.0 498.0 59.0% 37.0% 4.0% 5.64% 8.25% 12/2009 72.0 25.0 (124.0) 75.1% 0.3% 1.3%

Omnicom Group Inc. 52.4 120.9 0.0% 1.0% 99.0% 5.29% 5.64% 12/2009 6.4 6.4 (68.5) 43.3% 0.5% 1.0%

Scripps Networks Interactive Inc. Cl A 34.0 76.8 65.0% 35.0% 0.0% 6.20% 7.50% 12/2009 5.3 8.6 (42.9) 44.2% 0.5% 1.0%

Totals for All Media and Telecomm Companies $121,119.9 $140,359.7 50.7% 34.7% 14.6% 5.96% 7.75% $2,442.3 $1,478.3 86.3%

Totals for 12/31/09 Media and Telecomm Companies $112,052.0 $127,479.9 50.8% 33.9% 15.3% 5.89% 7.73% $1,477.5 $1,015.4 87.9%



2009

Media and Telecommunications

12/31/092009 2010E*

Pension Pension Expected Return Em ployer Pens ion Employer Pension Pension Pension Pension Def ici t as % of Pension Liability as % of

Company Pl an Assets P lan Liabili ties % Equit ies % Bonds % Other Discount Rate % on Assets % 10-K Date Cont ribution Contribution (Defi cit )/Surplus Funded S tatus M kt Cap at 10/15/2010 M kt Cap at 10/15/2010

New York Times Co. (Cl A) $1,150.9 $1,901.8 69.0% 31.0% 0.0% 6.30% 8.75% 12/2009 $29.8 $108.0 ($750.9) 60.5% 61.5% 155.7%

Gannett Co. Inc. 2 ,375.8 3,088.4 59.0% 30.0% 11.0% 5.90% 8.75% 12/2009 45.2 23.4 (712.6) 76.9% 23.6% 102.3%

Cincinnati Bell Inc. 325.4 506.3 53.1% 45.3% 1.6% 5.50% 8.25% 12/2009 52.2 8.0 (180.9) 64.3% 34.7% 97.2%

E.W. Scripps Co. (Cl A) 326.9 453.7 49.0% 46.0% 5.0% 5.97% 7.50% 12/2009 26.7 2.1 (126.8) 72.0% 26.4% 94.6%

R.R. Donnel ley & Sons Co. 2 ,654.4 3,168.1 65.0% 28.0% 7.0% 6.00% 8.30% 12/2009 22.2 21.8 (513.7) 83.8% 13.8% 84.8%

Belo Corp. (Series A) 345.2 541.6 71.8% 27.5% 0.7% 6.18% 8.50% 12/2009 0.0 14.3 (196.3) 63.7% 29.3% 80.7%

Qwest Communications Internationa l Inc. 7 ,326.0 8,147.0 38.0% 34.0% 28.0% 5.80% 8.00% 12/2009 0.0 0.0 (821.0) 89.9% 7.4% 73.6%

CBS Corp (Cl B) 3 ,482.8 4,897.2 21.5% 71.0% 7.5% 5.70% 7.00% 12/2009 68.2 52.0 (1,414.4) 71.1% 11.9% 41.3%

CenturyLink Inc. 3 ,219.7 4,181.6 49.3% 28.8% 21.9% 5.75% 8.38% 12/2009 175.9 300.0 (961.9) 77.0% 8.0% 34.7%

Verizon Communications Inc. 28,592.0 31,818.0 63.0% 19.0% 18.0% 6.25% 8.50% 12/2009 337.0 140.0 (3,226.0) 89.9% 3.5% 34.6%

Frontier Communications Corp. 608.6 890.6 38.0% 51.0% 11.0% 5.75% 8.00% 12/2009 0.0 10.0 (282.0) 68.3% 10.4% 32.9%

Washington Post Co. (Cl B) 1 ,440.8 1,105.2 82.0% 18.0% 0.0% 6.00% 6.50% 12/2009 0.0 0.0 335.6 130.4% -9.6% 31.7%

AT&T Inc. 46,873.0 50,850.0 50.0% 30.0% 20.0% 6.50% 8.50% 12/2009 2.0 0.0 (3,977.0) 92.2% 2.4% 30.3%

Loral Space & Communications Inc. 256.2 420.1 59.0% 41.0% 0.0% 6.00% 8.00% 12/2009 22.5 24.9 (163.9) 61.0% 10.0% 25.5%

Windstream Corp. 784.0 1,060.7 53.0% 38.2% 8.8% 5.89% 8.00% 12/2009 3.3 0.7 (276.7) 73.9% 4.6% 17.7%

Thomson Reuters Corporation 4,467.0 4,926.2 42.0% 53.0% 5.0% 5.72% 6.81% 12/2009 59.8 0.0 (459.2) 90.7% 1.4% 15.4%

McGraw-Hill Cos. 1 ,277.0 1,569.4 75.0% 19.0% 6.0% 5.95% 8.00% 12/2009 78.0 30.3 (292.4) 81.4% 2.7% 14.3%

John Wiley & Sons Inc. (Cl A) 229.9 322.6 46.0% 51.0% 3.0% 7.05% 7.40% 04/2010 48.2 11.7 (92.7) 71.3% 3.6% 12.4%

Interpubl ic Group Of Cos. 391.3 603.6 22.0% 45.0% 33.0% 5.53% 8.16% 12/2009 32.0 40.7 (212.3) 64.8% 4.1% 11.6%

CommScope Inc. 195.0 243.4 55.0% 45.0% 0.0% 5.90% 6.70% 12/2009 15.4 3.0 (48.4) 80.1% 2.3% 11.5%

Wal t Disney Co. 4 ,833.0 6,992.0 44.0% 38.0% 18.0% 5.75% 7.75% 09/2009 468.0 400.0 (2,159.0) 69.1% 3.2% 10.4%

Time Warner Inc. 2 ,962.0 3,412.0 61.1% 29.9% 9.0% 5.79% 8.00% 12/2009 73.0 55.0 (450.0) 86.8% 1.3% 9.6%

Time Warner Cable Inc. 1 ,595.0 1,552.0 43.9% 12.3% 43.8% 6.16% 8.00% 12/2009 170.0 55.0 43.0 102.8% -0.2% 7.8%

News Corp. (Cl A) 2 ,018.0 2,501.0 41.0% 39.0% 20.0% 7.00% 7.00% 06/2010 338.0 50.0 (483.0) 80.7% 1.3% 6.8%

Meredith Corp. 95.4 104.0 69.0% 31.0% 0.0% 5.75% 8.25% 06/2010 10.6 1.2 (8.6) 91.7% 0.6% 6.7%

Cablevision Systems Corp. 244.5 391.4 0.0% 37.0% 63.0% 5.17% 4.00% 12/2009 53.5 53.0 (146.9) 62.5% 1.8% 4.8%

Moody' s Corp. 108.2 213.0 60.0% 30.0% 10.0% 5.95% 8.35% 12/2009 8.0 8.2 (104.8) 50.8% 1.7% 3.4%

Viacom Inc. (Cl B) 414.0 659.0 69.0% 31.0% 0.0% 6.30% 8.00% 12/2009 119.0 25.0 (245.0) 62.8% 1.1% 2.9%

DIRECTV 374.0 498.0 59.0% 37.0% 4.0% 5.64% 8.25% 12/2009 72.0 25.0 (124.0) 75.1% 0.3% 1.3%

Omnicom Group Inc. 52.4 120.9 0.0% 1.0% 99.0% 5.29% 5.64% 12/2009 6.4 6.4 (68.5) 43.3% 0.5% 1.0%

Scripps Networks Interactive Inc. Cl A 34.0 76.8 65.0% 35.0% 0.0% 6.20% 7.50% 12/2009 5.3 8.6 (42.9) 44.2% 0.5% 1.0%

Totals for All Media and Telecomm Companies $121,119.9 $140,359.7 50.7% 34.7% 14.6% 5.96% 7.75% $2,442.3 $1,478.3 86.3%

Totals for 12/31/09 Media and Telecomm Companies $112,052.0 $127,479.9 50.8% 33.9% 15.3% 5.89% 7.73% $1,477.5 $1,015.4 87.9%



2009

Media and Telecommunications

12/31/09


19

Retail: Companies with Defined Benefit Plans $ in Millions; Ranked by 12/31/09 Pension Liability as % of 10/15/10 Market Capitalization

2009 2010E*

Pension P ension Expected Return Employer Pension Employer Pension Pension Pension Pension Defic it as % of Pension Liability as % of

Company P lan Assets Plan Liabil ities % Equit ies % Bonds % Other Discount Rate % on Assets % 10-K Date Contribution Contribut ion (Def ic it)/Surplus F unded Status Mkt Cap at 10/15/2010 M kt Cap at 10/15/2010

OfficeMax Inc. $1,050.5 $1,260.7 53.3% 46.7% 0.0% 6.15% 7.50% 12/2009 $88.9 $4.0 ($210.2) 83.3% 15.9% 95.5%

SUPERVALU Inc. 1,557.0 2,320.0 66.1% 33.7% 0.2% 6.00% 8.00% 02/2010 126.0 81.0 (763.0) 67.1% 29.5% 89.8%

Sears Holdings Corp. 4,844.0 6,691.0 38.0% 59.0% 3.0% 6.00% 7.75% 01/2010 183.0 278.0 (1,847.0) 72.4% 22.4% 81.2%

J.C. Penney Co. Inc. 4,314.0 4,583.0 70.0% 20.0% 10.0% 5.90% 8.40% 01/2010 376.0 34.0 (269.0) 94.1% 3.4% 58.6%

Macy's Inc. 1,865.0 3,559.0 52.0% 23.0% 25.0% 5.65% 8.75% 01/2010 448.0 325.0 (1,694.0) 52.4% 16.6% 34.9%

Foot Locker Inc 550.0 654.0 42.2% 55.5% 2.4% 5.25% 7.63% 01/2010 103.0 0.0 (104.0) 84.1% 4.2% 26.5%

Safeway Inc. 1,572.1 2,095.5 68.9% 30.3% 0.8% 6.10% 8.50% 12/2009 16.7 7.8 (523.4) 75.0% 6.3% 25.1%

Ruddick Corp. 199.3 367.4 39.6% 40.2% 20.2% 5.75% 8.00% 09/2009 8.7 8.8 (168.1) 54.3% 9.7% 21.3%

Kroger Co. 2,096.0 2,893.0 39.2% 27.2% 33.6% 6.00% 8.50% 01/2010 274.0 110.0 (797.0) 72.5% 5.7% 20.5%

Genuine Parts Co. 1,216.4 1,502.1 64.0% 35.0% 1.0% 6.54% 8.00% 12/2009 56.3 0.9 (285.7) 81.0% 3.8% 20.2%

Office Depot Inc. 120.4 192.1 71.0% 27.0% 2.0% 5.70% 6.89% 12/2009 5.2 5.3 (71.7) 62.7% 5.3% 14.2%

VF Corp. 1,034.4 1,285.3 46.0% 33.0% 21.0% 6.50% 8.00% 12/2009 212.1 8.0 (250.9) 80.5% 2.7% 13.9%

Sysco Corp. 1,667.0 2,212.3 55.0% 44.0% 1.0% 6.15% 8.00% 06/2010 297.9 22.2 (545.3) 75.4% 3.2% 12.9%

Sotheby's 270.2 257.4 64.0% 33.0% 3.0% 5.70% 7.40% 12/2009 3.5 3.2 12.8 105.0% -0.5% 10.1%

Phi llips-Van Heusen Corp. 207.9 298.8 62.3% 37.6% 0.1% 6.35% 8.25% 01/2010 10.7 16.5 (91.0) 69.6% 2.2% 7.2%

Tiffany & Co. 201.6 382.3 67.0% 27.0% 6.0% 6.50% 7.50% 01/2010 29.9 40.0 (180.7) 52.7% 2.8% 6.0%

Target Corp. 2,157.0 2,260.0 29.0% 28.0% 43.0% 5.85% 8.00% 01/2010 255.0 1,000.0 (103.0) 95.4% 0.3% 5.8%

Sherwin-Williams Co. 632.9 414.5 68.0% 29.0% 3.0% 5.50% 7.50% 12/2009 0.0 0.0 218.5 152.7% -2.8% 5.3%

TJX Cos. 508.4 631.9 47.0% 37.0% 16.0% 5.88% 8.00% 01/2010 147.9 3.8 (123.5) 80.5% 0.7% 3.5%

Big Lots Inc. 56.9 59.5 5.0% 84.0% 11.0% 5.70% 8.00% 01/2010 10.8 0.0 (2.7) 95.5% 0.1% 2.3%

AutoZone Inc. 115.3 185.6 57.3% 26.4% 16.3% 6.24% 8.00% 08/2009 0.0 4.0 (70.3) 62.1% 0.7% 1.8%

CVS Caremark Corp. 372.0 612.0 50.0% 50.0% 0.0% 6.00% 8.50% 12/2009 0.0 55.0 (240.0) 60.8% 0.6% 1.4%

Totals for All Retail Companies $26,608.3 $34,717.4 52.5% 37.6% 9.9% 5.97% 7.96% $2,653.6 $2,007.5 76.6%

Totals for 12/31/09 Retail Reporting Companies $6,268.9 $7,619.5 60.7% 35.5% 3.9% 6.02% 7.79% $382.7 $84.2 82.3%



2009

Retail

12/31/092009 2010E*

Pension P ension Expected Return Employer Pension Employer Pension Pension Pension Pension Defic it as % of Pension Liability as % of

Company P lan Assets Plan Liabil ities % Equit ies % Bonds % Other Discount Rate % on Assets % 10-K Date Contribution Contribut ion (Def ic it)/Surplus F unded Status Mkt Cap at 10/15/2010 M kt Cap at 10/15/2010

OfficeMax Inc. $1,050.5 $1,260.7 53.3% 46.7% 0.0% 6.15% 7.50% 12/2009 $88.9 $4.0 ($210.2) 83.3% 15.9% 95.5%

SUPERVALU Inc. 1,557.0 2,320.0 66.1% 33.7% 0.2% 6.00% 8.00% 02/2010 126.0 81.0 (763.0) 67.1% 29.5% 89.8%

Sears Holdings Corp. 4,844.0 6,691.0 38.0% 59.0% 3.0% 6.00% 7.75% 01/2010 183.0 278.0 (1,847.0) 72.4% 22.4% 81.2%

J.C. Penney Co. Inc. 4,314.0 4,583.0 70.0% 20.0% 10.0% 5.90% 8.40% 01/2010 376.0 34.0 (269.0) 94.1% 3.4% 58.6%

Macy's Inc. 1,865.0 3,559.0 52.0% 23.0% 25.0% 5.65% 8.75% 01/2010 448.0 325.0 (1,694.0) 52.4% 16.6% 34.9%

Foot Locker Inc 550.0 654.0 42.2% 55.5% 2.4% 5.25% 7.63% 01/2010 103.0 0.0 (104.0) 84.1% 4.2% 26.5%

Safeway Inc. 1,572.1 2,095.5 68.9% 30.3% 0.8% 6.10% 8.50% 12/2009 16.7 7.8 (523.4) 75.0% 6.3% 25.1%

Ruddick Corp. 199.3 367.4 39.6% 40.2% 20.2% 5.75% 8.00% 09/2009 8.7 8.8 (168.1) 54.3% 9.7% 21.3%

Kroger Co. 2,096.0 2,893.0 39.2% 27.2% 33.6% 6.00% 8.50% 01/2010 274.0 110.0 (797.0) 72.5% 5.7% 20.5%

Genuine Parts Co. 1,216.4 1,502.1 64.0% 35.0% 1.0% 6.54% 8.00% 12/2009 56.3 0.9 (285.7) 81.0% 3.8% 20.2%

Office Depot Inc. 120.4 192.1 71.0% 27.0% 2.0% 5.70% 6.89% 12/2009 5.2 5.3 (71.7) 62.7% 5.3% 14.2%

VF Corp. 1,034.4 1,285.3 46.0% 33.0% 21.0% 6.50% 8.00% 12/2009 212.1 8.0 (250.9) 80.5% 2.7% 13.9%

Sysco Corp. 1,667.0 2,212.3 55.0% 44.0% 1.0% 6.15% 8.00% 06/2010 297.9 22.2 (545.3) 75.4% 3.2% 12.9%

Sotheby's 270.2 257.4 64.0% 33.0% 3.0% 5.70% 7.40% 12/2009 3.5 3.2 12.8 105.0% -0.5% 10.1%

Phi llips-Van Heusen Corp. 207.9 298.8 62.3% 37.6% 0.1% 6.35% 8.25% 01/2010 10.7 16.5 (91.0) 69.6% 2.2% 7.2%

Tiffany & Co. 201.6 382.3 67.0% 27.0% 6.0% 6.50% 7.50% 01/2010 29.9 40.0 (180.7) 52.7% 2.8% 6.0%

Target Corp. 2,157.0 2,260.0 29.0% 28.0% 43.0% 5.85% 8.00% 01/2010 255.0 1,000.0 (103.0) 95.4% 0.3% 5.8%

Sherwin-Williams Co. 632.9 414.5 68.0% 29.0% 3.0% 5.50% 7.50% 12/2009 0.0 0.0 218.5 152.7% -2.8% 5.3%

TJX Cos. 508.4 631.9 47.0% 37.0% 16.0% 5.88% 8.00% 01/2010 147.9 3.8 (123.5) 80.5% 0.7% 3.5%

Big Lots Inc. 56.9 59.5 5.0% 84.0% 11.0% 5.70% 8.00% 01/2010 10.8 0.0 (2.7) 95.5% 0.1% 2.3%

AutoZone Inc. 115.3 185.6 57.3% 26.4% 16.3% 6.24% 8.00% 08/2009 0.0 4.0 (70.3) 62.1% 0.7% 1.8%

CVS Caremark Corp. 372.0 612.0 50.0% 50.0% 0.0% 6.00% 8.50% 12/2009 0.0 55.0 (240.0) 60.8% 0.6% 1.4%

Totals for All Retail Companies $26,608.3 $34,717.4 52.5% 37.6% 9.9% 5.97% 7.96% $2,653.6 $2,007.5 76.6%

Totals for 12/31/09 Retail Reporting Companies $6,268.9 $7,619.5 60.7% 35.5% 3.9% 6.02% 7.79% $382.7 $84.2 82.3%



2009

Retail

12/31/09


20

Technology: Companies with Defined Benefit Plans $ in Millions; Ranked by 12/31/09 Pension Liability as % of 10/15/10 Market Capitalization

2009 2010E *



Eastman Kodak Co. $7,291.0 $8,414.0 18.0% 46.0% 36.0% 5.75% 8.49% 12/2009 $121.0 $135.0 ($1,123.0) 86.7% 101.8% 763.0%

Unisys Corp. 5,726.0 7,231.1 59.0% 36.0% 5.0% 6.11% 8.75% 12/2009 94.0 115.0 (1,505.1) 79.2% 117.0% 562.1%

NCR Corp. 4,319.0 5,367.0 53.6% 39.0% 7.4% 5.40% 7.10% 12/2009 83.0 110.0 (1,048.0) 80.5% 45.9% 235.0%

Xerox Corp. 7,561.0 9,194.0 45.0% 7.0% 48.0% 5.70% 7.30% 12/2009 122.0 260.0 (1,633.0) 82.2% 10.7% 60.2%

Internationa l Business Machines Corp. 81,574.0 89,662.0 41.0% 52.0% 7.0% 5.60% 8.00% 12/2009 1,195.0 800.0 (8,088.0) 91.0% 4.5% 50.3%

Computer Sciences Corp. 2,623.6 3,669.2 67.0% 28.0% 5.0% 7.90% 8.50% 03/2010 339.0 180.0 (1,045.6) 71.5% 13.9% 48.7%

LSI Corp. 819.4 1,274.4 48.0% 52.0% 0.0% 5.75% 8.25% 12/2009 20.2 37.0 (455.0) 64.3% 15.0% 42.1%

Motorola Inc. 5,062.0 7,449.0 63.0% 35.0% 2.0% 6.00% 8.25% 12/2009 129.0 200.0 (2,387.0) 68.0% 12.8% 39.9%

Intermec Inc. 163.0 244.5 56.0% 38.0% 6.0% 6.04% 8.00% 12/2009 4.4 4.9 (81.4) 66.7% 10.7% 32.2%

Hewlett-Packard Co. 19,696.0 24,178.0 47.9% 45.0% 7.1% 5.90% 8.00% 10/2009 586.0 745.0 (4,482.0) 81.5% 4.6% 24.7%

Diebold Inc. 398.7 490.5 48.0% 42.0% 10.0% 6.33% 8.50% 12/2009 15.7 14.8 (91.9) 81.3% 4.3% 23.2%

Lexmark International Inc. 605.9 770.6 3.0% 5.7% 91.3% 5.60% 7.40% 12/2009 89.7 20.0 (164.7) 78.6% 4.7% 21.9%

Tyco Electronics Ltd. 1,776.0 2,875.0 42.0% 49.5% 8.5% 5.85% 7.54% 09/2009 152.0 83.0 (1,099.0) 61.8% 8.0% 21.0%

Agi lent Techno logies Inc. 1,957.0 2,158.0 80.0% 20.0% 0.0% 5.25% 8.50% 10/2009 108.0 86.0 (201.0) 90.7% 1.7% 18.1%

Teradyne Inc. 239.8 333.7 50.4% 40.5% 9.2% 5.85% 7.75% 12/2009 12.4 0.0 (93.9) 71.9% 4.6% 16.5%

Corning Inc. 2,270.0 2,791.0 25.0% 55.0% 20.0% 5.75% 7.75% 12/2009 101.0 230.0 (521.0) 81.3% 1.8% 9.7%

Texas Instruments Inc. 2,531.0 2,805.0 38.0% 51.0% 11.0% 6.00% 6.50% 12/2009 176.0 41.0 (274.0) 90.2% 0.8% 8.3%

National Semiconductor Corp. 199.8 252.5 42.0% 25.0% 33.0% 4.40% 5.25% 05/2010 6.8 5.2 (52.7) 79.1% 1.7% 8.1%

Parametric Technology Corp. 105.1 153.5 52.0% 41.0% 7.0% 5.50% 7.50% 09/2009 6.9 2.7 (48.4) 68.5% 2.1% 6.6%

MEMC Electronic Materials Inc. 177.4 191.8 62.0% 33.0% 5.0% 5.56% 8.50% 12/2009 2.3 0.9 (14.4) 92.5% 0.5% 6.3%

Hewitt Associates Inc 209.6 247.4 38.2% 52.7% 9.2% 4.88% 6.09% 09/2009 35.2 12.3 (37.8) 84.7% 0.8% 5.4%

Amphenol Corp. (Cl A) 268.2 429.8 59.0% 41.0% 0.0% 5.75% 8.25% 12/2009 2.6 20.0 (161.6) 62.4% 1.9% 5.0%

Automatic Data Processing Inc. 787.0 894.9 63.0% 37.0% 0.0% 6.80% 7.25% 06/2010 112.3 7.6 (107.9) 87.9% 0.5% 4.3%

Western Union Co. 275.9 400.1 32.0% 68.0% 0.0% 5.30% 7.50% 12/2009 4.1 25.0 (124.2) 69.0% 1.0% 3.4%

Analog Devices Inc. 135.6 165.0 69.0% 27.0% 4.0% 6.32% 7.16% 10/2009 7.6 30.1 (29.4) 82.2% 0.3% 1.8%

Applied Materials Inc. 109.6 279.4 47.0% 40.0% 13.0% 4.35% 5.40% 10/2009 15.0 10.0 (169.8) 39.2% 1.1% 1.8%

Visa Inc. 703.0 739.0 65.0% 30.0% 5.0% 5.60% 7.50% 09/2009 166.0 65.0 (36.0) 95.1% 0.1% 1.3%

Intel Corp. 963.0 1,220.0 56.0% 44.0% 0.0% 6.10% 4.50% 12/2009 154.0 55.0 (257.0) 78.9% 0.2% 1.1%

EMC Corp. 353.6 386.3 71.0% 29.0% 0.0% 6.00% 8.25% 12/2009 0.0 0.0 (32.8) 91.5% 0.1% 0.9%

Totals for All Technology Companies $149,444.3 $175,216.2 49.5% 39.4% 11.1% 5.52% 7.04% $3,940.1 $3,334.5 85.3%

Totals for 12/31/09 Technology Reporting Companies $120,857.5 $138,985.9 47.0% 38.9% 14.1% 5.74% 7.61% $2,369.7 $2,078.6 87.0%



2009

Technology

12/31/092009 2010E *



Eastman Kodak Co. $7,291.0 $8,414.0 18.0% 46.0% 36.0% 5.75% 8.49% 12/2009 $121.0 $135.0 ($1,123.0) 86.7% 101.8% 763.0%

Unisys Corp. 5,726.0 7,231.1 59.0% 36.0% 5.0% 6.11% 8.75% 12/2009 94.0 115.0 (1,505.1) 79.2% 117.0% 562.1%

NCR Corp. 4,319.0 5,367.0 53.6% 39.0% 7.4% 5.40% 7.10% 12/2009 83.0 110.0 (1,048.0) 80.5% 45.9% 235.0%

Xerox Corp. 7,561.0 9,194.0 45.0% 7.0% 48.0% 5.70% 7.30% 12/2009 122.0 260.0 (1,633.0) 82.2% 10.7% 60.2%

Internationa l Business Machines Corp. 81,574.0 89,662.0 41.0% 52.0% 7.0% 5.60% 8.00% 12/2009 1,195.0 800.0 (8,088.0) 91.0% 4.5% 50.3%

Computer Sciences Corp. 2,623.6 3,669.2 67.0% 28.0% 5.0% 7.90% 8.50% 03/2010 339.0 180.0 (1,045.6) 71.5% 13.9% 48.7%

LSI Corp. 819.4 1,274.4 48.0% 52.0% 0.0% 5.75% 8.25% 12/2009 20.2 37.0 (455.0) 64.3% 15.0% 42.1%

Motorola Inc. 5,062.0 7,449.0 63.0% 35.0% 2.0% 6.00% 8.25% 12/2009 129.0 200.0 (2,387.0) 68.0% 12.8% 39.9%

Intermec Inc. 163.0 244.5 56.0% 38.0% 6.0% 6.04% 8.00% 12/2009 4.4 4.9 (81.4) 66.7% 10.7% 32.2%

Hewlett-Packard Co. 19,696.0 24,178.0 47.9% 45.0% 7.1% 5.90% 8.00% 10/2009 586.0 745.0 (4,482.0) 81.5% 4.6% 24.7%

Diebold Inc. 398.7 490.5 48.0% 42.0% 10.0% 6.33% 8.50% 12/2009 15.7 14.8 (91.9) 81.3% 4.3% 23.2%

Lexmark International Inc. 605.9 770.6 3.0% 5.7% 91.3% 5.60% 7.40% 12/2009 89.7 20.0 (164.7) 78.6% 4.7% 21.9%

Tyco Electronics Ltd. 1,776.0 2,875.0 42.0% 49.5% 8.5% 5.85% 7.54% 09/2009 152.0 83.0 (1,099.0) 61.8% 8.0% 21.0%

Agi lent Techno logies Inc. 1,957.0 2,158.0 80.0% 20.0% 0.0% 5.25% 8.50% 10/2009 108.0 86.0 (201.0) 90.7% 1.7% 18.1%

Teradyne Inc. 239.8 333.7 50.4% 40.5% 9.2% 5.85% 7.75% 12/2009 12.4 0.0 (93.9) 71.9% 4.6% 16.5%

Corning Inc. 2,270.0 2,791.0 25.0% 55.0% 20.0% 5.75% 7.75% 12/2009 101.0 230.0 (521.0) 81.3% 1.8% 9.7%

Texas Instruments Inc. 2,531.0 2,805.0 38.0% 51.0% 11.0% 6.00% 6.50% 12/2009 176.0 41.0 (274.0) 90.2% 0.8% 8.3%

National Semiconductor Corp. 199.8 252.5 42.0% 25.0% 33.0% 4.40% 5.25% 05/2010 6.8 5.2 (52.7) 79.1% 1.7% 8.1%

Parametric Technology Corp. 105.1 153.5 52.0% 41.0% 7.0% 5.50% 7.50% 09/2009 6.9 2.7 (48.4) 68.5% 2.1% 6.6%

MEMC Electronic Materials Inc. 177.4 191.8 62.0% 33.0% 5.0% 5.56% 8.50% 12/2009 2.3 0.9 (14.4) 92.5% 0.5% 6.3%

Hewitt Associates Inc 209.6 247.4 38.2% 52.7% 9.2% 4.88% 6.09% 09/2009 35.2 12.3 (37.8) 84.7% 0.8% 5.4%

Amphenol Corp. (Cl A) 268.2 429.8 59.0% 41.0% 0.0% 5.75% 8.25% 12/2009 2.6 20.0 (161.6) 62.4% 1.9% 5.0%

Automatic Data Processing Inc. 787.0 894.9 63.0% 37.0% 0.0% 6.80% 7.25% 06/2010 112.3 7.6 (107.9) 87.9% 0.5% 4.3%

Western Union Co. 275.9 400.1 32.0% 68.0% 0.0% 5.30% 7.50% 12/2009 4.1 25.0 (124.2) 69.0% 1.0% 3.4%

Analog Devices Inc. 135.6 165.0 69.0% 27.0% 4.0% 6.32% 7.16% 10/2009 7.6 30.1 (29.4) 82.2% 0.3% 1.8%

Applied Materials Inc. 109.6 279.4 47.0% 40.0% 13.0% 4.35% 5.40% 10/2009 15.0 10.0 (169.8) 39.2% 1.1% 1.8%

Visa Inc. 703.0 739.0 65.0% 30.0% 5.0% 5.60% 7.50% 09/2009 166.0 65.0 (36.0) 95.1% 0.1% 1.3%

Intel Corp. 963.0 1,220.0 56.0% 44.0% 0.0% 6.10% 4.50% 12/2009 154.0 55.0 (257.0) 78.9% 0.2% 1.1%

EMC Corp. 353.6 386.3 71.0% 29.0% 0.0% 6.00% 8.25% 12/2009 0.0 0.0 (32.8) 91.5% 0.1% 0.9%

Totals for All Technology Companies $149,444.3 $175,216.2 49.5% 39.4% 11.1% 5.52% 7.04% $3,940.1 $3,334.5 85.3%

Totals for 12/31/09 Technology Reporting Companies $120,857.5 $138,985.9 47.0% 38.9% 14.1% 5.74% 7.61% $2,369.7 $2,078.6 87.0%



2009

Technology

12/31/09


21

Transportation: Companies with Defined Benefit Plans $ in Millions; Ranked by 12/31/09 Pension Liability as % of 10/15/10 Market Capitalization

2009 2010E *

Pension P ension E xpected Return E mployer Pension E mployer Pension Pension P ension Pension Defic it as % of P ension Liability as % of

Company P lan Assets Plan Liabil ities % Equit ies % B onds % Other Discount Rate % on A ssets % 10-K Date Contribution Contribut ion (Def ic it)/S urplus F unded Status Mkt Cap at 10/15/2010 M kt Cap at 10/15/2010

YRC Worldwide Inc. $643.5 $983.1 61.0% 38.0% 1.0% 6.15% 8.50% 12/2009 $3.3 $14.0 ($339.6) 65.5% 200.2% 579.4%

AMR Corp. 7,051.0 12,003.0 44.0% 53.0% 3.0% 6.10% 8.75% 12/2009 10.0 0.0 (4,952.0) 58.7% 238.4% 577.8%

Delta Air Lines Inc. 7,623.0 17,031.0 68.8% 26.0% 5.2% 5.93% 8.83% 12/2009 200.0 720.0 (9,408.0) 44.8% 105.1% 190.2%

Hawaiian Holdings Inc. 195.7 342.8 55.0% 35.0% 10.0% 5.79% 7.90% 12/2009 8.7 37.5 (147.1) 57.1% 44.4% 103.5%

Brink's Co. 847.1 1,033.9 50.0% 35.0% 15.0% 5.90% 8.80% 12/2009 169.0 15.6 (186.8) 81.9% 16.5% 91.5%

Continental Airlines B 1,371.0 2,629.0 70.0% 21.0% 9.0% 6.01% 8.25% 12/2009 187.0 85.0 (1,258.0) 52.1% 36.1% 75.5%

Con-Way Inc. 902.3 1,233.0 69.0% 24.0% 7.0% 6.05% 8.50% 12/2009 17.3 25.0 (330.7) 73.2% 19.7% 73.4%

Alaska Air Group Inc. 906.9 1,217.1 63.0% 37.0% 0.0% 5.85% 7.75% 12/2009 150.0 52.5 (310.2) 74.5% 18.5% 72.6%

Ryder System Inc. 1,282.9 1,603.6 34.0% 66.0% 0.0% 6.20% 7.90% 12/2009 130.9 17.0 (320.7) 80.0% 13.5% 67.4%

FedEx Corp. 13,295.0 14,484.0 48.7% 49.9% 1.4% 6.37% 8.00% 05/2010 900.0 850.0 (1,189.0) 91.8% 4.2% 51.4%

American Commercial Lines Inc. 144.8 171.0 93.0% 7.0% 0.0% 6.18% 8.25% 12/2009 1.5 0.0 (26.2) 84.7% 6.1% 40.1%

Arkansas Best Corp. 172.6 235.0 62.8% 36.0% 1.2% 5.05% 6.00% 12/2009 23.3 0.0 (62.3) 73.5% 10.1% 38.0%

Park-Ohio Holdings Corp. 98.3 48.8 69.3% 9.9% 20.8% 5.50% 8.25% 12/2009 0.0 0.0 49.4 201.3% -28.9% 28.6%

GATX Corp. 354.4 402.9 67.5% 27.8% 4.7% 5.70% 8.68% 12/2009 47.1 16.7 (48.5) 88.0% 3.4% 28.4%

United Parcel Service Inc. (Cl B) 15,832.0 18,338.0 54.1% 23.8% 22.1% 6.58% 8.96% 12/2009 833.0 1,043.0 (2,506.0) 86.3% 3.6% 26.6%

Hertz Global Holdings Inc. 423.4 695.7 70.0% 30.0% 0.0% 5.42% 8.25% 12/2009 62.0 0.0 (272.3) 60.9% 6.6% 16.8%

CSX Corp. 1,781.0 2,395.0 57.0% 39.0% 4.0% 5.25% 8.50% 12/2009 263.0 0.0 (614.0) 74.4% 2.7% 10.6%

Norfo lk Southern Corp. 1,542.0 1,696.0 77.0% 23.0% 0.0% 5.85% 8.75% 12/2009 11.0 11.0 (154.0) 90.9% 0.7% 7.5%

Kirby Corp. 126.5 142.8 73.0% 23.0% 4.0% 6.10% 7.50% 12/2009 0.1 0.0 (16.3) 88.6% 0.8% 6.7%

Union Pacific Corp. 2,044.0 2,448.0 61.0% 31.0% 8.0% 5.90% 8.00% 12/2009 293.0 0.0 (404.0) 83.5% 0.9% 5.7%

United Continental Hold ings Inc. 156.0 228.0 51.9% 16.0% 32.1% 3.87% 5.01% 12/2009 18.0 12.0 (72.0) 68.4% 1.6% 5.2%

US Airways Group Inc. 38.0 57.0 65.0% 35.0% 0.0% 5.50% 8.00% 12/2009 0.0 0.0 (19.0) 66.7% 1.2% 3.6%

Totals for All Transportation Companies $56,831.4 $79,418.6 62.1% 31.2% 6.8% 5.78% 8.06% $3,328.2 $2,899.3 71.6%

Totals for 12/31/09 Transportation Reporting Companies $43,536.4 $64,934.6 62.7% 30.3% 7.0% 5.76% 8.06% $2,428.2 $2,049.3 67.0%



2009

Transportation

12/31/092009 2010E *

Pension P ension E xpected Return E mployer Pension E mployer Pension Pension P ension Pension Defic it as % of P ension Liability as % of

Company P lan Assets Plan Liabil ities % Equit ies % B onds % Other Discount Rate % on A ssets % 10-K Date Contribution Contribut ion (Def ic it)/S urplus F unded Status Mkt Cap at 10/15/2010 M kt Cap at 10/15/2010

YRC Worldwide Inc. $643.5 $983.1 61.0% 38.0% 1.0% 6.15% 8.50% 12/2009 $3.3 $14.0 ($339.6) 65.5% 200.2% 579.4%

AMR Corp. 7,051.0 12,003.0 44.0% 53.0% 3.0% 6.10% 8.75% 12/2009 10.0 0.0 (4,952.0) 58.7% 238.4% 577.8%

Delta Air Lines Inc. 7,623.0 17,031.0 68.8% 26.0% 5.2% 5.93% 8.83% 12/2009 200.0 720.0 (9,408.0) 44.8% 105.1% 190.2%

Hawaiian Holdings Inc. 195.7 342.8 55.0% 35.0% 10.0% 5.79% 7.90% 12/2009 8.7 37.5 (147.1) 57.1% 44.4% 103.5%

Brink's Co. 847.1 1,033.9 50.0% 35.0% 15.0% 5.90% 8.80% 12/2009 169.0 15.6 (186.8) 81.9% 16.5% 91.5%

Continental Airlines B 1,371.0 2,629.0 70.0% 21.0% 9.0% 6.01% 8.25% 12/2009 187.0 85.0 (1,258.0) 52.1% 36.1% 75.5%

Con-Way Inc. 902.3 1,233.0 69.0% 24.0% 7.0% 6.05% 8.50% 12/2009 17.3 25.0 (330.7) 73.2% 19.7% 73.4%

Alaska Air Group Inc. 906.9 1,217.1 63.0% 37.0% 0.0% 5.85% 7.75% 12/2009 150.0 52.5 (310.2) 74.5% 18.5% 72.6%

Ryder System Inc. 1,282.9 1,603.6 34.0% 66.0% 0.0% 6.20% 7.90% 12/2009 130.9 17.0 (320.7) 80.0% 13.5% 67.4%

FedEx Corp. 13,295.0 14,484.0 48.7% 49.9% 1.4% 6.37% 8.00% 05/2010 900.0 850.0 (1,189.0) 91.8% 4.2% 51.4%

American Commercial Lines Inc. 144.8 171.0 93.0% 7.0% 0.0% 6.18% 8.25% 12/2009 1.5 0.0 (26.2) 84.7% 6.1% 40.1%

Arkansas Best Corp. 172.6 235.0 62.8% 36.0% 1.2% 5.05% 6.00% 12/2009 23.3 0.0 (62.3) 73.5% 10.1% 38.0%

Park-Ohio Holdings Corp. 98.3 48.8 69.3% 9.9% 20.8% 5.50% 8.25% 12/2009 0.0 0.0 49.4 201.3% -28.9% 28.6%

GATX Corp. 354.4 402.9 67.5% 27.8% 4.7% 5.70% 8.68% 12/2009 47.1 16.7 (48.5) 88.0% 3.4% 28.4%

United Parcel Service Inc. (Cl B) 15,832.0 18,338.0 54.1% 23.8% 22.1% 6.58% 8.96% 12/2009 833.0 1,043.0 (2,506.0) 86.3% 3.6% 26.6%

Hertz Global Holdings Inc. 423.4 695.7 70.0% 30.0% 0.0% 5.42% 8.25% 12/2009 62.0 0.0 (272.3) 60.9% 6.6% 16.8%

CSX Corp. 1,781.0 2,395.0 57.0% 39.0% 4.0% 5.25% 8.50% 12/2009 263.0 0.0 (614.0) 74.4% 2.7% 10.6%

Norfo lk Southern Corp. 1,542.0 1,696.0 77.0% 23.0% 0.0% 5.85% 8.75% 12/2009 11.0 11.0 (154.0) 90.9% 0.7% 7.5%

Kirby Corp. 126.5 142.8 73.0% 23.0% 4.0% 6.10% 7.50% 12/2009 0.1 0.0 (16.3) 88.6% 0.8% 6.7%

Union Pacific Corp. 2,044.0 2,448.0 61.0% 31.0% 8.0% 5.90% 8.00% 12/2009 293.0 0.0 (404.0) 83.5% 0.9% 5.7%

United Continental Hold ings Inc. 156.0 228.0 51.9% 16.0% 32.1% 3.87% 5.01% 12/2009 18.0 12.0 (72.0) 68.4% 1.6% 5.2%

US Airways Group Inc. 38.0 57.0 65.0% 35.0% 0.0% 5.50% 8.00% 12/2009 0.0 0.0 (19.0) 66.7% 1.2% 3.6%

Totals for All Transportation Companies $56,831.4 $79,418.6 62.1% 31.2% 6.8% 5.78% 8.06% $3,328.2 $2,899.3 71.6%

Totals for 12/31/09 Transportation Reporting Companies $43,536.4 $64,934.6 62.7% 30.3% 7.0% 5.76% 8.06% $2,428.2 $2,049.3 67.0%



2009

Transportation

12/31/09


22

Utilities: Companies with Defined Benefit Plans $ in Millions; Ranked by 12/31/09 Pension Liability as % of 10/15/10 Market Capitalization

2009 2010E*



Consolidated Edison Inc. 6,877.0 9,408.0 67.0% 28.0% 5.0% 6.05% 8.50% 12/2009 291.0 427.0 (2,531.0) 73.1% 18.4% 68.6%

CH Energy Group Inc. (Holding Co.) 314.3 467.2 62.8% 31.9% 5.3% 5.70% 8.00% 12/2009 23.1 0.0 (153.0) 67.3% 21.0% 64.0%

PG&E Corp. 9,330.0 10,766.0 55.0% 40.0% 5.0% 5.97% 6.80% 12/2009 187.0 176.0 (1,436.0) 86.7% 7.9% 59.0%

AES Corp. 4,437.0 5,717.0 25.3% 69.9% 4.8% 5.93% 8.00% 12/2009 209.0 27.0 (1,280.0) 77.6% 13.0% 58.2%

PNM Resources Inc. 360.9 562.8 49.0% 21.0% 30.0% 6.47% 8.75% 12/2009 0.0 19.5 (201.9) 64.1% 19.5% 54.2%

Northeast Utilities 1,789.6 2,610.3 58.0% 27.0% 15.0% 5.98% 8.75% 12/2009 0.0 45.0 (820.7) 68.6% 15.2% 48.4%

Laclede Group Inc. 223.7 378.0 50.0% 50.0% 0.0% 5.25% 8.25% 09/2009 2.6 3.5 (154.3) 59.2% 19.6% 47.9%

Hawaiian Electric Industries Inc. 739.0 1,014.3 68.0% 32.0% 0.0% 6.50% 8.25% 12/2009 15.9 0.0 (275.3) 72.9% 13.0% 47.8%

NiSource Inc. 1,681.5 2,356.0 58.3% 30.4% 11.3% 5.54% 8.75% 12/2009 102.9 161.0 (674.5) 71.4% 13.7% 47.7%

Ameren Corp. 2,495.0 3,255.0 57.0% 37.0% 6.0% 5.75% 8.00% 12/2009 99.0 225.0 (760.0) 76.7% 11.0% 47.2%

Pinnacle West Capi tal Corp. 1,461.8 2,074.1 57.5% 41.2% 1.3% 5.90% 8.25% 12/2009 0.0 100.0 (612.3) 70.5% 13.6% 45.9%

FirstEnergy Corp. 4,399.0 5,392.0 44.0% 49.0% 7.0% 6.00% 9.00% 12/2009 509.0 89.0 (993.0) 81.6% 8.4% 45.4%

DTE Energy Co. 2,549.0 3,436.0 31.0% 26.0% 43.0% 5.90% 8.75% 12/2009 206.0 20.0 (887.0) 74.2% 11.2% 43.2%

UIL Holdings Corp. 231.3 371.8 62.0% 36.0% 2.0% 5.85% 8.50% 12/2009 0.2 9.0 (140.5) 62.2% 16.3% 43.1%

CMS Energy Corp. 1,007.0 1,823.0 60.0% 32.0% 8.0% 5.85% 8.25% 12/2009 206.0 19.0 (816.0) 55.2% 19.1% 42.6%

Pepco Holdings Inc. 1,500.0 1,796.0 56.0% 37.0% 7.0% 6.40% 5.00% 12/2009 306.0 100.0 (296.0) 83.5% 6.8% 41.4%

Dynegy Inc. 186.0 242.0 66.0% 34.0% 0.0% 5.86% 8.25% 12/2009 27.0 19.0 (56.0) 76.9% 9.6% 41.3%

PPL Corp. 4,103.0 5,393.0 54.0% 37.0% 9.0% 6.00% 8.00% 12/2009 149.0 4.0 (1,290.0) 76.1% 9.7% 40.6%

Southwest Gas Corp. 393.0 641.6 65.0% 34.0% 1.0% 6.00% 8.00% 12/2009 24.5 0.0 (248.6) 61.2% 15.7% 40.5%

Exelon Corp. 7,839.0 11,482.0 62.0% 34.0% 4.0% 5.83% 8.50% 12/2009 441.0 261.0 (3,643.0) 68.3% 12.8% 40.2%

NorthWestern Corp. 391.4 415.3 61.1% 38.9% 0.0% 5.88% 8.00% 12/2009 92.9 0.0 (23.8) 94.3% 2.2% 38.9%

Al lete Inc. 327.6 465.3 53.0% 28.0% 19.0% 5.81% 8.50% 12/2009 37.8 25.0 (137.7) 70.4% 10.3% 34.7%

WGL Holdings Inc. 550.0 678.1 58.0% 39.0% 3.0% 6.50% 8.25% 09/2009 2.4 10.2 (128.1) 81.1% 6.6% 34.7%

Integrys Energy Group Inc. 933.6 1,337.4 67.0% 30.0% 3.0% 6.15% 8.50% 12/2009 23.5 67.6 (403.8) 69.8% 9.9% 32.8%

Great Pla ins Energy Inc. 488.2 836.3 54.0% 34.0% 12.0% 5.92% 8.00% 12/2009 42.1 53.6 (348.1) 58.4% 13.6% 32.6%

IDACORP Inc. 313.5 559.5 59.0% 23.0% 18.0% 5.90% 8.50% 12/2009 0.0 0.0 (246.0) 56.0% 14.1% 32.2%

Edison Internationa l 2,857.0 3,688.0 51.0% 49.0% 0.0% 6.00% 7.50% 12/2009 123.0 108.0 (831.0) 77.5% 7.2% 31.7%

Avista Corp. 272.7 378.2 51.0% 31.0% 18.0% 6.29% 8.50% 12/2009 48.0 21.0 (105.5) 72.1% 8.8% 31.5%

Al legheny Energy Inc. 815.5 1,226.4 49.0% 9.0% 42.0% 6.00% 8.25% 12/2009 38.0 80.0 (410.9) 66.5% 9.9% 29.4%

Westar Energy Inc. 466.8 773.5 61.0% 28.0% 11.0% 6.00% 8.13% 12/2009 44.6 28.7 (306.8) 60.3% 11.2% 28.2%

California Water Service Group 105.6 219.7 52.0% 48.0% 0.0% 6.10% 8.00% 12/2009 27.5 20.9 (114.1) 48.1% 14.6% 28.0%

NSTAR 862.0 1,140.9 37.0% 31.0% 32.0% 5.85% 9.00% 12/2009 127.4 25.0 (278.9) 75.6% 6.8% 27.9%

CenterPoint Energy Inc. 1,432.0 1,866.0 18.0% 26.9% 55.1% 5.70% 8.00% 12/2009 20.0 9.0 (434.0) 76.7% 6.4% 27.5%

American Water Works Co. 695.5 1,128.2 71.0% 29.0% 0.0% 5.93% 7.90% 12/2009 85.8 82.8 (432.6) 61.7% 10.5% 27.3%

2009

Utililt ies

12/31/092009 2010E*



Consolidated Edison Inc. 6,877.0 9,408.0 67.0% 28.0% 5.0% 6.05% 8.50% 12/2009 291.0 427.0 (2,531.0) 73.1% 18.4% 68.6%

CH Energy Group Inc. (Holding Co.) 314.3 467.2 62.8% 31.9% 5.3% 5.70% 8.00% 12/2009 23.1 0.0 (153.0) 67.3% 21.0% 64.0%

PG&E Corp. 9,330.0 10,766.0 55.0% 40.0% 5.0% 5.97% 6.80% 12/2009 187.0 176.0 (1,436.0) 86.7% 7.9% 59.0%

AES Corp. 4,437.0 5,717.0 25.3% 69.9% 4.8% 5.93% 8.00% 12/2009 209.0 27.0 (1,280.0) 77.6% 13.0% 58.2%

PNM Resources Inc. 360.9 562.8 49.0% 21.0% 30.0% 6.47% 8.75% 12/2009 0.0 19.5 (201.9) 64.1% 19.5% 54.2%

Northeast Utilities 1,789.6 2,610.3 58.0% 27.0% 15.0% 5.98% 8.75% 12/2009 0.0 45.0 (820.7) 68.6% 15.2% 48.4%

Laclede Group Inc. 223.7 378.0 50.0% 50.0% 0.0% 5.25% 8.25% 09/2009 2.6 3.5 (154.3) 59.2% 19.6% 47.9%

Hawaiian Electric Industries Inc. 739.0 1,014.3 68.0% 32.0% 0.0% 6.50% 8.25% 12/2009 15.9 0.0 (275.3) 72.9% 13.0% 47.8%

NiSource Inc. 1,681.5 2,356.0 58.3% 30.4% 11.3% 5.54% 8.75% 12/2009 102.9 161.0 (674.5) 71.4% 13.7% 47.7%

Ameren Corp. 2,495.0 3,255.0 57.0% 37.0% 6.0% 5.75% 8.00% 12/2009 99.0 225.0 (760.0) 76.7% 11.0% 47.2%

Pinnacle West Capi tal Corp. 1,461.8 2,074.1 57.5% 41.2% 1.3% 5.90% 8.25% 12/2009 0.0 100.0 (612.3) 70.5% 13.6% 45.9%

FirstEnergy Corp. 4,399.0 5,392.0 44.0% 49.0% 7.0% 6.00% 9.00% 12/2009 509.0 89.0 (993.0) 81.6% 8.4% 45.4%

DTE Energy Co. 2,549.0 3,436.0 31.0% 26.0% 43.0% 5.90% 8.75% 12/2009 206.0 20.0 (887.0) 74.2% 11.2% 43.2%

UIL Holdings Corp. 231.3 371.8 62.0% 36.0% 2.0% 5.85% 8.50% 12/2009 0.2 9.0 (140.5) 62.2% 16.3% 43.1%

CMS Energy Corp. 1,007.0 1,823.0 60.0% 32.0% 8.0% 5.85% 8.25% 12/2009 206.0 19.0 (816.0) 55.2% 19.1% 42.6%

Pepco Holdings Inc. 1,500.0 1,796.0 56.0% 37.0% 7.0% 6.40% 5.00% 12/2009 306.0 100.0 (296.0) 83.5% 6.8% 41.4%

Dynegy Inc. 186.0 242.0 66.0% 34.0% 0.0% 5.86% 8.25% 12/2009 27.0 19.0 (56.0) 76.9% 9.6% 41.3%

PPL Corp. 4,103.0 5,393.0 54.0% 37.0% 9.0% 6.00% 8.00% 12/2009 149.0 4.0 (1,290.0) 76.1% 9.7% 40.6%

Southwest Gas Corp. 393.0 641.6 65.0% 34.0% 1.0% 6.00% 8.00% 12/2009 24.5 0.0 (248.6) 61.2% 15.7% 40.5%

Exelon Corp. 7,839.0 11,482.0 62.0% 34.0% 4.0% 5.83% 8.50% 12/2009 441.0 261.0 (3,643.0) 68.3% 12.8% 40.2%

NorthWestern Corp. 391.4 415.3 61.1% 38.9% 0.0% 5.88% 8.00% 12/2009 92.9 0.0 (23.8) 94.3% 2.2% 38.9%

Al lete Inc. 327.6 465.3 53.0% 28.0% 19.0% 5.81% 8.50% 12/2009 37.8 25.0 (137.7) 70.4% 10.3% 34.7%

WGL Holdings Inc. 550.0 678.1 58.0% 39.0% 3.0% 6.50% 8.25% 09/2009 2.4 10.2 (128.1) 81.1% 6.6% 34.7%

Integrys Energy Group Inc. 933.6 1,337.4 67.0% 30.0% 3.0% 6.15% 8.50% 12/2009 23.5 67.6 (403.8) 69.8% 9.9% 32.8%

Great Pla ins Energy Inc. 488.2 836.3 54.0% 34.0% 12.0% 5.92% 8.00% 12/2009 42.1 53.6 (348.1) 58.4% 13.6% 32.6%

IDACORP Inc. 313.5 559.5 59.0% 23.0% 18.0% 5.90% 8.50% 12/2009 0.0 0.0 (246.0) 56.0% 14.1% 32.2%

Edison Internationa l 2,857.0 3,688.0 51.0% 49.0% 0.0% 6.00% 7.50% 12/2009 123.0 108.0 (831.0) 77.5% 7.2% 31.7%

Avista Corp. 272.7 378.2 51.0% 31.0% 18.0% 6.29% 8.50% 12/2009 48.0 21.0 (105.5) 72.1% 8.8% 31.5%

Al legheny Energy Inc. 815.5 1,226.4 49.0% 9.0% 42.0% 6.00% 8.25% 12/2009 38.0 80.0 (410.9) 66.5% 9.9% 29.4%

Westar Energy Inc. 466.8 773.5 61.0% 28.0% 11.0% 6.00% 8.13% 12/2009 44.6 28.7 (306.8) 60.3% 11.2% 28.2%

California Water Service Group 105.6 219.7 52.0% 48.0% 0.0% 6.10% 8.00% 12/2009 27.5 20.9 (114.1) 48.1% 14.6% 28.0%

NSTAR 862.0 1,140.9 37.0% 31.0% 32.0% 5.85% 9.00% 12/2009 127.4 25.0 (278.9) 75.6% 6.8% 27.9%

CenterPoint Energy Inc. 1,432.0 1,866.0 18.0% 26.9% 55.1% 5.70% 8.00% 12/2009 20.0 9.0 (434.0) 76.7% 6.4% 27.5%

American Water Works Co. 695.5 1,128.2 71.0% 29.0% 0.0% 5.93% 7.90% 12/2009 85.8 82.8 (432.6) 61.7% 10.5% 27.3%

2009

Utililt ies

12/31/09


2009 2010E*



American Electric Power Co. Inc. 3,403.0 4,701.0 54.9% 38.1% 7.0% 5.60% 8.00% 12/2009 8.0 160.0 (1,298.0) 72.4% 7.5% 27.3%

Entergy Corp. 2,607.3 3,837.7 67.0% 32.0% 1.0% 6.20% 7.25% 12/2009 132.0 270.0 (1,230.5) 67.9% 8.5% 26.6%

Xcel Energy Inc. 2,449.3 2,829.6 7.0% 55.4% 37.6% 6.00% 8.50% 12/2009 200.0 100.0 (380.3) 86.6% 3.5% 26.1%

NV Energy Inc. 670.8 757.7 49.0% 44.0% 7.0% 5.80% 7.10% 12/2009 55.8 41.5 (87.0) 88.5% 2.8% 24.6%

Public Service Enterprise Group Inc. 2,914.0 4,017.0 66.0% 26.0% 8.0% 5.90% 8.75% 12/2009 373.0 415.0 (1,103.0) 72.5% 6.6% 23.9%

Sempra Energy 2,130.0 3,083.0 64.0% 36.0% 0.0% 5.63% 7.00% 12/2009 185.0 168.0 (953.0) 69.1% 7.2% 23.2%

Al liant Energy Corp. 776.4 920.1 60.0% 36.0% 4.0% 5.80% 8.25% 12/2009 130.8 8.0 (143.7) 84.4% 3.6% 23.0%

Northwest Natural Gas Co. 201.3 308.0 50.7% 18.2% 31.1% 6.01% 8.25% 12/2009 26.7 6.2 (106.7) 65.4% 7.9% 22.9%

El Paso Electric Co. 155.1 237.7 73.0% 17.0% 10.0% 5.90% 8.50% 12/2009 11.8 10.2 (82.6) 65.3% 7.7% 22.1%

Conste llation Energy Group Inc. 1,058.1 1,469.8 57.0% 34.0% 9.0% 6.00% 8.50% 12/2009 341.5 37.0 (411.7) 72.0% 6.2% 22.1%

Southern Co. 5,627.0 6,758.0 72.0% 15.0% 13.0% 5.93% 8.50% 12/2009 24.0 0.0 (1,131.0) 83.3% 3.6% 21.6%

Duke Energy Corp. 4,224.0 4,868.0 23.0% 37.0% 40.0% 5.50% 8.50% 12/2009 819.0 0.0 (644.0) 86.8% 2.8% 21.0%

Mirant Corp. 240.0 300.0 71.0% 28.0% 1.0% 5.62% 8.50% 12/2009 1.0 1.0 (60.0) 80.0% 4.0% 19.8%

UniSource Energy Corp. 184.0 242.0 57.0% 34.0% 9.0% 6.30% 8.00% 12/2009 25.0 22.0 (58.0) 76.0% 4.7% 19.5%

Progress Energy Inc. 1,673.0 2,422.0 60.0% 25.0% 15.0% 6.00% 8.75% 12/2009 242.0 120.0 (749.0) 69.1% 5.7% 18.5%

Cleco Corp. 221.1 332.8 65.0% 23.0% 12.0% 5.91% 7.80% 12/2009 18.8 0.0 (111.7) 66.4% 6.0% 17.8%

Atmos Energy Corp. 301.1 482.8 62.2% 19.6% 18.2% 5.52% 8.25% 09/2009 33.7 0.0 (181.6) 62.4% 6.7% 17.8%

Wisconsin Energy Corp. 1,026.0 1,160.7 55.0% 45.0% 0.0% 6.05% 8.25% 12/2009 275.8 0.0 (134.7) 88.4% 2.0% 17.0%

Questar Corp. 318.6 486.6 67.0% 32.0% 1.0% 6.50% 7.50% 12/2009 23.5 22.0 (168.0) 65.5% 5.6% 16.2%

Dominion Resources Inc. (Virgin ia) 4,226.0 4,126.0 39.1% 28.6% 32.3% 6.60% 8.50% 12/2009 15.0 0.0 100.0 102.4% -0.4% 15.7%

TECO Energy Inc. 388.9 587.7 66.0% 34.0% 0.0% 5.75% 8.25% 12/2009 8.2 14.0 (198.8) 66.2% 5.3% 15.6%

AGL Resources Inc. 303.0 463.0 55.0% 18.0% 27.0% 5.90% 9.00% 12/2009 26.0 0.0 (160.0) 65.4% 5.3% 15.3%

SCANA Corp. 758.9 789.4 66.0% 34.0% 0.0% 5.75% 8.50% 12/2009 0.0 0.0 (30.5) 96.1% 0.6% 15.2%

OGE Energy Corp. 496.3 619.2 43.0% 49.5% 7.5% 5.30% 8.50% 12/2009 50.5 0.0 (122.9) 80.2% 2.9% 14.7%

Nicor Inc. 363.5 305.6 60.0% 40.0% 0.0% 5.45% 8.50% 12/2009 0.0 0.0 57.9 118.9% -2.6% 13.9%

UGI Corp. 279.8 428.9 68.0% 32.0% 0.0% 5.50% 8.50% 09/2009 5.7 0.0 (149.1) 65.2% 4.6% 13.3%

Vectren Corp. 211.1 271.5 60.0% 35.0% 5.0% 6.00% 8.25% 12/2009 34.9 18.0 (60.4) 77.8% 2.8% 12.7%

DPL Inc. 243.4 323.9 35.0% 43.0% 22.0% 5.75% 8.50% 12/2009 0.4 10.4 (80.5) 75.1% 2.5% 9.9%

MDU Resources Group Inc. 255.3 352.9 4.0% 96.0% 0.0% 5.75% 8.50% 12/2009 10.7 10.2 (97.6) 72.3% 2.5% 9.0%

NextEra Energy Inc 3,028.0 1,866.0 85.0% 15.0% 0.0% 5.50% 7.75% 12/2009 0.0 29.0 1,162.0 162.3% -5.0% 8.1%

Aqua America Inc. 138.6 217.8 61.0% 27.0% 12.0% 5.91% 8.00% 12/2009 17.1 11.6 (79.2) 63.6% 2.8% 7.6%

NRG Energy Inc. 263.0 357.0 70.0% 30.0% 0.0% 5.93% 7.50% 12/2009 27.0 18.0 (94.0) 73.7% 1.8% 6.8%

EQT Corp. 49.0 63.8 59.0% 37.0% 4.0% 5.75% 8.00% 12/2009 11.6 1.2 (14.8) 76.8% 0.3% 1.1%

Totals for All Utilities Companies $103,613.4 $133,886.3 55.3% 34.1% 10.6% 5.91% 8.18% $6,646.7 $3,730.1 77.4%

Totals for 12/31/09 Utilities Reporting Companies $102,258.8 $131,918.5 55.0% 34.1% 11.0% 5.92% 8.17% $6,602.3 $3,716.4 77.5%



2009 12/31/092009 2010E*



American Electric Power Co. Inc. 3,403.0 4,701.0 54.9% 38.1% 7.0% 5.60% 8.00% 12/2009 8.0 160.0 (1,298.0) 72.4% 7.5% 27.3%

Entergy Corp. 2,607.3 3,837.7 67.0% 32.0% 1.0% 6.20% 7.25% 12/2009 132.0 270.0 (1,230.5) 67.9% 8.5% 26.6%

Xcel Energy Inc. 2,449.3 2,829.6 7.0% 55.4% 37.6% 6.00% 8.50% 12/2009 200.0 100.0 (380.3) 86.6% 3.5% 26.1%

NV Energy Inc. 670.8 757.7 49.0% 44.0% 7.0% 5.80% 7.10% 12/2009 55.8 41.5 (87.0) 88.5% 2.8% 24.6%

Public Service Enterprise Group Inc. 2,914.0 4,017.0 66.0% 26.0% 8.0% 5.90% 8.75% 12/2009 373.0 415.0 (1,103.0) 72.5% 6.6% 23.9%

Sempra Energy 2,130.0 3,083.0 64.0% 36.0% 0.0% 5.63% 7.00% 12/2009 185.0 168.0 (953.0) 69.1% 7.2% 23.2%

Al liant Energy Corp. 776.4 920.1 60.0% 36.0% 4.0% 5.80% 8.25% 12/2009 130.8 8.0 (143.7) 84.4% 3.6% 23.0%

Northwest Natural Gas Co. 201.3 308.0 50.7% 18.2% 31.1% 6.01% 8.25% 12/2009 26.7 6.2 (106.7) 65.4% 7.9% 22.9%

El Paso Electric Co. 155.1 237.7 73.0% 17.0% 10.0% 5.90% 8.50% 12/2009 11.8 10.2 (82.6) 65.3% 7.7% 22.1%

Conste llation Energy Group Inc. 1,058.1 1,469.8 57.0% 34.0% 9.0% 6.00% 8.50% 12/2009 341.5 37.0 (411.7) 72.0% 6.2% 22.1%

Southern Co. 5,627.0 6,758.0 72.0% 15.0% 13.0% 5.93% 8.50% 12/2009 24.0 0.0 (1,131.0) 83.3% 3.6% 21.6%

Duke Energy Corp. 4,224.0 4,868.0 23.0% 37.0% 40.0% 5.50% 8.50% 12/2009 819.0 0.0 (644.0) 86.8% 2.8% 21.0%

Mirant Corp. 240.0 300.0 71.0% 28.0% 1.0% 5.62% 8.50% 12/2009 1.0 1.0 (60.0) 80.0% 4.0% 19.8%

UniSource Energy Corp. 184.0 242.0 57.0% 34.0% 9.0% 6.30% 8.00% 12/2009 25.0 22.0 (58.0) 76.0% 4.7% 19.5%

Progress Energy Inc. 1,673.0 2,422.0 60.0% 25.0% 15.0% 6.00% 8.75% 12/2009 242.0 120.0 (749.0) 69.1% 5.7% 18.5%

Cleco Corp. 221.1 332.8 65.0% 23.0% 12.0% 5.91% 7.80% 12/2009 18.8 0.0 (111.7) 66.4% 6.0% 17.8%

Atmos Energy Corp. 301.1 482.8 62.2% 19.6% 18.2% 5.52% 8.25% 09/2009 33.7 0.0 (181.6) 62.4% 6.7% 17.8%

Wisconsin Energy Corp. 1,026.0 1,160.7 55.0% 45.0% 0.0% 6.05% 8.25% 12/2009 275.8 0.0 (134.7) 88.4% 2.0% 17.0%

Questar Corp. 318.6 486.6 67.0% 32.0% 1.0% 6.50% 7.50% 12/2009 23.5 22.0 (168.0) 65.5% 5.6% 16.2%

Dominion Resources Inc. (Virgin ia) 4,226.0 4,126.0 39.1% 28.6% 32.3% 6.60% 8.50% 12/2009 15.0 0.0 100.0 102.4% -0.4% 15.7%

TECO Energy Inc. 388.9 587.7 66.0% 34.0% 0.0% 5.75% 8.25% 12/2009 8.2 14.0 (198.8) 66.2% 5.3% 15.6%

AGL Resources Inc. 303.0 463.0 55.0% 18.0% 27.0% 5.90% 9.00% 12/2009 26.0 0.0 (160.0) 65.4% 5.3% 15.3%

SCANA Corp. 758.9 789.4 66.0% 34.0% 0.0% 5.75% 8.50% 12/2009 0.0 0.0 (30.5) 96.1% 0.6% 15.2%

OGE Energy Corp. 496.3 619.2 43.0% 49.5% 7.5% 5.30% 8.50% 12/2009 50.5 0.0 (122.9) 80.2% 2.9% 14.7%

Nicor Inc. 363.5 305.6 60.0% 40.0% 0.0% 5.45% 8.50% 12/2009 0.0 0.0 57.9 118.9% -2.6% 13.9%

UGI Corp. 279.8 428.9 68.0% 32.0% 0.0% 5.50% 8.50% 09/2009 5.7 0.0 (149.1) 65.2% 4.6% 13.3%

Vectren Corp. 211.1 271.5 60.0% 35.0% 5.0% 6.00% 8.25% 12/2009 34.9 18.0 (60.4) 77.8% 2.8% 12.7%

DPL Inc. 243.4 323.9 35.0% 43.0% 22.0% 5.75% 8.50% 12/2009 0.4 10.4 (80.5) 75.1% 2.5% 9.9%

MDU Resources Group Inc. 255.3 352.9 4.0% 96.0% 0.0% 5.75% 8.50% 12/2009 10.7 10.2 (97.6) 72.3% 2.5% 9.0%

NextEra Energy Inc 3,028.0 1,866.0 85.0% 15.0% 0.0% 5.50% 7.75% 12/2009 0.0 29.0 1,162.0 162.3% -5.0% 8.1%

Aqua America Inc. 138.6 217.8 61.0% 27.0% 12.0% 5.91% 8.00% 12/2009 17.1 11.6 (79.2) 63.6% 2.8% 7.6%

NRG Energy Inc. 263.0 357.0 70.0% 30.0% 0.0% 5.93% 7.50% 12/2009 27.0 18.0 (94.0) 73.7% 1.8% 6.8%

EQT Corp. 49.0 63.8 59.0% 37.0% 4.0% 5.75% 8.00% 12/2009 11.6 1.2 (14.8) 76.8% 0.3% 1.1%

Totals for All Utilities Companies $103,613.4 $133,886.3 55.3% 34.1% 10.6% 5.91% 8.18% $6,646.7 $3,730.1 77.4%

Totals for 12/31/09 Utilities Reporting Companies $102,258.8 $131,918.5 55.0% 34.1% 11.0% 5.92% 8.17% $6,602.3 $3,716.4 77.5%



2009 12/31/09

$ in Millions; Ranked by 12/31/09 Pension Liability as % of 10/15/10 Market Capitalization

Utilities: Companies with Defined Benefit Plans (cont’d)

23

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This document and the information contained herein do not constitute an offer to sell or the solicitation of an offer to buy any security, commodity or instrument or related derivative, nor do they constitute an offer or commitment to lend, syndicate or arrange a financing, underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction, or commit capital, or to participate in any trading strategies, and do not constitute legal, regulatory, accounting or tax advice to the recipient. We recommend that the recipient seek independent third party legal, regulatory, accounting and tax advice regarding the contents of this document. This document does not constitute and should not be considered as any form of financial opinion or recommendation by us or any of our affiliates. This document is not a research report and was not prepared by the research department of Morgan Stanley or any of its affiliates.

Morgan Stanley bankers may from time to time provide a variety of services to the Company, including conducting capital structure or asset/liability analysis of the Company, discussing the Company’s obligations and liabilities (including its obligations to any employee benefit plan (“Plan”) the Company may maintain), discussing the Plan’s effect on the Company’s financial position, proposing particular transactions or trades that the Company and/or the Plan should consider entering into in order to manage those obligations and liabilities, and potentially entering into such transactions (collectively, the “Services”).

We are providing this notice to ensure that any Services Morgan Stanley provides to the Company are not misconstrued so as to characterize Morgan Stanley as a fiduciary for the Plan, and to that end have set forth below the conditions under which Morgan Stanley is providing the Services.

Morgan Stanley is providing the Services and related information solely as an arm’s length counterparty and not as a fiduciary or advisor to the Plan. In connection with the provision of the Services, there is no agreement, direct or indirect, between the Company (including management and any employees or agents thereof) and Morgan Stanley for Morgan Stanley to provide advice with respect to the Plan that the Company or representatives of the Company who act as fiduciaries to the Plan are authorized to rely on in taking any action with respect to the assets of the Plan. In connection with the provision of the Services, Morgan Stanley does not possess, has not exercised, and is not authorized to exercise any authority, control, or responsibility with respect to the management or administration of the Plan or the investment of the Plan’s assets. No information obtained from the Services should be utilized by the Company as a primary basis for decisions regarding the investment of the Plan’s assets.

The foregoing materials have been provided by Morgan Stanley to certain persons in their capacity as agent for the corporate entity (and not for any of its employee benefit plans) and is for informational purposes only. They are not (and should not be construed to be) “investment advice” (as defined under ERISA) from Morgan Stanley with respect to an employee benefit plan or to any person acting as a fiduciary for an employee benefit plan, or as a primary basis for any particular plan investment decision.

You and your directors, officers, employees, agents and affiliates must hold this document and any oral information provided in connection with this document in strict confidence and may not communicate, reproduce, distribute or disclose it to any other person, or refer to it publicly, in whole or in part at any time except with our prior written consent.

Notwithstanding anything herein to the contrary, each recipient hereof (and their employees, representatives, and other agents) may disclose to any and all persons, without limitation of any kind from the commencement of discussions, the U.S. federal and state income tax treatment and tax structure of the proposed transaction and all materials of any kind (including opinions or other tax analyses) that are provided relating to the tax treatment and tax structure. For this purpose, "tax structure" is limited to facts relevant to the U.S. federal and state income tax treatment of the proposed transaction and does not include information relating to the identity of the parties, their affiliates, agents or advisors. This document is provided by Morgan Stanley & Co. Incorporated and/or certain of its affiliates, which may include Morgan Stanley Realty Incorporated, Morgan Stanley Senior Funding, Inc., Morgan Stanley Bank, Morgan Stanley & Co. International plc, Morgan Stanley Securities Limited, Morgan Stanley Bank AG, Morgan Stanley Japan Securities Co., Ltd., Morgan Stanley Asia Limited, Morgan Stanley Australia Securities Limited, Morgan Stanley Australia Limited, Morgan Stanley Asia (Singapore) Pte., Morgan Stanley Services Limited, Morgan Stanley & Co. International plc Seoul Branch and/or Morgan Stanley Canada Limited Unless governing law permits otherwise, you must contact an authorized Morgan Stanley entity in your jurisdiction regarding this document or any of the information contained herein.

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