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<SEC-DOCUMENT>0001144204-07-032936.txt : 20070621
<SEC-HEADER>0001144204-07-032936.hdr.sgml : 20070621
<ACCEPTANCE-DATETIME>20070621114222
ACCESSION NUMBER:		0001144204-07-032936
CONFORMED SUBMISSION TYPE:	S-3
PUBLIC DOCUMENT COUNT:		7
FILED AS OF DATE:		20070621
DATE AS OF CHANGE:		20070621

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			AMERICAN REAL ESTATE PARTNERS L P
		CENTRAL INDEX KEY:			0000813762
		STANDARD INDUSTRIAL CLASSIFICATION:	MISCELLANEOUS FABRICATED TEXTILE PRODUCTS [2390]
		IRS NUMBER:				133398766
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		S-3
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-143930
		FILM NUMBER:		07932982

	BUSINESS ADDRESS:	
		STREET 1:		767 FIFTH AVENUE
		STREET 2:		SUITE 4700
		CITY:			NEW YORK,
		STATE:			NY
		ZIP:			10153
		BUSINESS PHONE:		(212) 702-4300

	MAIL ADDRESS:	
		STREET 1:		767 FIFTH AVENUE
		STREET 2:		SUITE 4700
		CITY:			NEW YORK,
		STATE:			NY
		ZIP:			10153
</SEC-HEADER>
<DOCUMENT>
<TYPE>S-3
<SEQUENCE>1
<FILENAME>v077570s3.htm
<TEXT>
<html>
  <head>
    <title>
</title>
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  <body style="FONT-SIZE: 10pt; COLOR: #000000; LINE-HEIGHT: 12pt; FONT-FAMILY: Times New Roman">
    <div style="MARGIN: 0pt" align="center"><font style="FONT-FAMILY: Times New Roman" color="#000000"><strong>As
      filed with the Securities and Exchange Commission on
      June 21, 2007</strong></font></div>
    <div style="PADDING-BOTTOM: 3pt; MARGIN: 0pt; BORDER-BOTTOM: #000000 12pt double" align="right"><strong>Registration
      No.
      333-&#160;&#160;&#160;&#160;&#160;&#160;</strong></div>
    <div style="MARGIN-TOP: 5pt; MARGIN-BOTTOM: 0pt" align="center"><strong>UNITED
      STATES</strong></div>
    <div style="MARGIN: 0pt" align="center"><strong>SECURITIES AND EXCHANGE
      COMMISSION</strong></div>
    <div style="MARGIN: 0pt" align="center"><strong>Washington, D.C.
      20549</strong></div>
    <div style="MARGIN-TOP: 6pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>FORM
      S-3</strong></div>
    <div style="MARGIN-TOP: 6pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>REGISTRATION
      STATEMENT UNDER THE SECURITIES ACT OF
      1933</strong></div>
    <div style="MARGIN-TOP: 5.35pt; FONT-SIZE: 16pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 18pt" align="center"><strong>AMERICAN
      REAL ESTATE PARTNERS, L.P.</strong></div>
    <div style="MARGIN-TOP: 0pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 4pt; LINE-HEIGHT: 10pt" align="center">(Exact
      Name of Registrant as Specified in Its Charter)</div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="260">
            </td>
            <td width="19">
            </td>
            <td width="260">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="346">
              <div style="PADDING-LEFT: 6pt; MARGIN: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="center"><strong>Delaware</strong></div>
            </td>
            <td valign="top" width="26">
              <div style="MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>&#160;&#160;&#160;&#160;&#160;</strong></div>
            </td>
            <td valign="bottom" width="346">
              <div style="MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>13-3398766</strong></div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="346">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 8pt" align="center">(State
                or Other Jurisdiction of<br>Incorporation or
                Organization)</div>
            </td>
            <td valign="top" width="26">&#160;</td>
            <td valign="bottom" width="346">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 8pt" align="center">(I.R.S.
                Employer<br>Identification
                Numbers)</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="MARGIN-TOP: 3.35pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>767
      Fifth Avenue, Suite 4700<br>New York, New York
      10153<br>(212) 702-4300</strong></div>
    <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 9pt" align="center">(Address,
      Including Zip Code, and Telephone Number, Including</div>
    <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 9pt" align="center">Area
      Code, of Registrant&#8217;s Principal Executive Offices)</div>
    <div style="MARGIN-TOP: 3.35pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Keith
      A. Meister<br>Principal Executive Officer and Vice
      Chairman of the Board<br>767 Fifth Avenue, Suite 4700<br>New York, New York
      10153<br>(212) 702-4300</strong></div>
    <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 9pt" align="center">(Name,
      Address, Including Zip Code, and Telephone Number,</div>
    <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 9pt" align="center">Including
      Area Code, of Agent for Service)</div>
    <div style="MARGIN-TOP: 5pt; MARGIN-BOTTOM: 1.65pt" align="center">With copies
      to:</div>
    <div style="MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Julie M.
      Allen,
      Esq.<br>Ian B. Blumenstein, Esq.<br>Proskauer Rose LLP<br>1585 Broadway<br>New
      York, New York 10036<br>(212) 969-3000</strong></div>
    <div style="MARGIN-TOP: 5pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 10pt"><strong>Approximate
      date of commencement of proposed sale of the securities to the public:
</strong>From time to time after the effective date of this Registration
      Statement.</div>
    <div style="MARGIN-TOP: 3.35pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 10pt">If
      the only securities being registered on this Form are being offered pursuant
      to
      dividend or interest reinvestment plans, please check the following box. <font style="FONT-FAMILY: Wingdings">&#168;</font></div>
    <div style="MARGIN-TOP: 3.35pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 10pt">If
      any of the securities being registered on this Form are to be offered on a
      delayed or continuous basis pursuant to Rule 415 under the Securities Act of
      1933, as amended, other than securities offered only in connection with dividend
      or interest reinvestment plans, check the following box. <font style="FONT-FAMILY: Wingdings">&#253;</font></div>
    <div style="MARGIN-TOP: 3.35pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 11pt">If
      this Form is filed to register additional securities for an offering pursuant
      to
      Rule 462(b) under the Securities Act, please check the following box and list
      the Securities Act registration statement number of the earlier effective
      registration statement for the same offering. <font style="FONT-FAMILY: Wingdings">&#168;</font> _______________</div>
    <div style="MARGIN-TOP: 3.35pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 11pt">If
      this Form is a post-effective amendment filed pursuant to Rule 462(c) under
      the
      Securities Act, check the following box and list the Securities Act registration
      statement number of the earlier effective registration statement for the same
      offering. <font style="FONT-FAMILY: Wingdings">&#168;</font> ____________</div>
    <div style="MARGIN-TOP: 3.35pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 10pt">If
      this Form is a registration statement pursuant to General Instruction 1.D.
      or a
      post-effective amendment thereto that shall become effective upon filing with
      the Commission pursuant to Rule 462(e) under the Securities Act, check the
      following box. <font style="FONT-FAMILY: Wingdings">&#168;</font></div>
    <div style="MARGIN-TOP: 3.35pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 10pt">If
      this Form is a post-effective amendment to a registration statement filed
      pursuant to General Instruction 1.D. filed to register additional securities
      or
      additional classes of securities pursuant to Rule 413(b) under the Securities
      Act, check the following box. <font style="FONT-FAMILY: Wingdings">&#168;</font></div>
    <div style="MARGIN-TOP: 2.5pt; MARGIN-BOTTOM: 2.5pt; LINE-HEIGHT: 11pt" align="center"><strong>CALCULATION
      OF REGISTRATION FEE</strong></div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="170">
            </td>
            <td width="11">
            </td>
            <td width="79">
            </td>
            <td width="11">
            </td>
            <td width="11">
            </td>
            <td width="74">
            </td>
            <td width="11">
            </td>
            <td width="8">
            </td>
            <td width="83">
            </td>
            <td width="11">
            </td>
            <td width="7">
            </td>
            <td width="58">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="227" style="border-top: #000000 3pt double; border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 9pt"><strong>Title
                of Each Class of Securities <br>to be Registered</strong></div>
            </td>
            <td valign="top" width="15">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 9pt" align="center"><strong>&#160;&#160;&#160;&#160;&#160;</strong></div>
            </td>
            <td valign="bottom" width="105" style="border-top: #000000 3pt double; border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 9pt" align="center"><strong>Amount
                to be Registered</strong></div>
            </td>
            <td valign="top" width="15">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 9pt" align="center"><strong>&#160;&#160;&#160;&#160;&#160;</strong></div>
            </td>
            <td colspan="2" valign="bottom" width="114" style="border-top: #000000 3pt double; border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 9pt" align="center"><strong>Proposed
                Maximum Offering Price per Depositary
                Unit</strong></div>
            </td>
            <td valign="top" width="15">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 9pt" align="center"><strong>&#160;&#160;&#160;&#160;&#160;</strong></div>
            </td>
            <td colspan="2" valign="bottom" width="122" style="border-top: #000000 3pt double; border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 9pt" align="center"><strong>Proposed
                Maximum<br>Aggregate
                Offering<br>Price</strong></div>
            </td>
            <td valign="top" width="15">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 9pt" align="center"><strong>&#160;&#160;&#160;&#160;&#160;</strong></div>
            </td>
            <td colspan="2" valign="bottom" width="87" style="border-top: #000000 3pt double; border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 9pt" align="center"><strong>Amount
                of Registration Fee</strong></div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="227">
              <div style="PADDING-LEFT: 6pt; MARGIN: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 4pt">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="top" width="15">&#160;</td>
            <td valign="bottom" width="105">&#160;</td>
            <td valign="top" width="15">&#160;</td>
            <td colspan="2" valign="bottom" width="114">&#160;</td>
            <td valign="top" width="15">&#160;</td>
            <td colspan="2" valign="bottom" width="122">&#160;</td>
            <td valign="top" width="15">&#160;</td>
            <td colspan="2" valign="bottom" width="87">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="227">
              <div style="PADDING-LEFT: 6pt; MARGIN: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 11pt">Depositary
                units</div>
            </td>
            <td valign="top" width="15">&#160;</td>
            <td valign="bottom" width="105">
              <div style="MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">4,525,058(1)(2)</div>
            </td>
            <td valign="top" width="15">&#160;</td>
            <td valign="bottom" width="15">
              <div style="MARGIN: 0pt; LINE-HEIGHT: 11pt"></div>
            </td>

      <td valign="bottom" width="99"> <div style="MARGIN: 0pt; LINE-HEIGHT: 11pt" align="center">$94.96(3)</div>
            </td>
            <td valign="top" width="15">
              <div style="MARGIN: 0pt; LINE-HEIGHT: 11pt"></div>
            </td>
            <td valign="bottom" width="11">
              <div style="MARGIN: 0pt; LINE-HEIGHT: 11pt"></div>
            </td>

      <td valign="bottom" width="111"> <div style="MARGIN: 0pt; LINE-HEIGHT: 11pt" align="center">$429,699,508(3)</div>
            </td>

      <td valign="top" width="15"><div style="MARGIN: 0pt; LINE-HEIGHT: 11pt"></div>
            </td>
            <td valign="bottom" width="9">
              <div style="MARGIN: 0pt; LINE-HEIGHT: 11pt"></div>
            </td>

      <td valign="bottom" width="77"> <div style="MARGIN: 0pt; LINE-HEIGHT: 11pt" align="center">$13,191.77</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="FONT-SIZE: 11pt; MARGIN: 0pt; LINE-HEIGHT: 8pt">&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;</div>
    <div style="MARGIN-TOP: 0pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: -12pt; TEXT-INDENT: -18pt">(1)</div>
    <div style="MARGIN-TOP: 0pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 1.65pt; LINE-HEIGHT: 10pt">This
      number reflects the aggregate number of depositary units representing limited
      partnership interests issuable upon conversion of American Real Estate Partners,
      L.P.&#8217;s Variable Rate Senior Convertible Notes due 2013 at the conversion rate of
      $132.595 of our depositary units for each $1,000 principal amount of the
      notes.</div>
    <div style="MARGIN-TOP: 0pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: -12pt; TEXT-INDENT: -18pt">(2)</div>
    <div style="PADDING-LEFT: 18pt; MARGIN: 0pt; LINE-HEIGHT: 10pt">In the event
      of
      a stock split, stock dividend or similar transaction involving the amount of
      depositary units of the Registrant, in order to prevent dilution, the number
      of
      depositary units registered hereby shall be automatically adjusted to cover
      the
      additional depositary units in accordance with Rule 416 under the Securities
      Act.</div>
    <div style="MARGIN-TOP: 0pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: -12pt; TEXT-INDENT: -18pt">(3)</div>
    <div style="PADDING-LEFT: 18pt; MARGIN: 0pt; LINE-HEIGHT: 10pt">Based on the
      average of the high and low selling prices per unit as reported on the New
      York
      Stock Exchange on June&#160;15, 2007. Estimated pursuant to Rule 457(c) under
      the Securities Act, solely for the purpose of calculating the registration
      fee.</div>
    <div style="PADDING-BOTTOM: 3pt; MARGIN: 0pt; LINE-HEIGHT: 7pt; BORDER-BOTTOM: #000000 12pt double"><br></div>
    <div style="MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><br><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="MARGIN-TOP: 7.5pt; FONT-SIZE: 7.5pt; MARGIN-BOTTOM: 0pt; PAGE-BREAK-BEFORE: always; COLOR: #ff0000; LINE-HEIGHT: 9.5pt; FONT-FAMILY: Arial" align="justify"><font style="FONT-FAMILY: Arial" color="#ff0000"><strong>The
      information in this prospectus is not complete and may be changed. We may not
      sell these depositary units until the Registration Statement filed with the
      Securities and Exchange Commission is effective. This prospectus is not an
      offer
      to sell these depositary units and it is not soliciting an offer to buy these
      depositary units in any jurisdiction where the offer or sale is not
      permitted.</strong></font></div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="468">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="624">
              <div style="MARGIN: 0pt; COLOR: #ff0000" align="center"><font style="FONT-FAMILY: Times New Roman"><strong>SUBJECT
                TO COMPLETION, DATED
                JUNE 21, 2007</strong></font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="MARGIN: 0pt"><br></div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="468">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="624">
              <div style="MARGIN: 0pt; COLOR: #ff0000" align="center"><strong>PROSPECTUS</strong></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="MARGIN-TOP: 96pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 14pt" align="center"><font color="#000000"><strong>4,525,058
      Depositary
      Units</strong></font></div>
    <div style="MARGIN-TOP: 18pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 14pt" align="center"><strong>AMERICAN
      REAL ESTATE PARTNERS, L.P.</strong></div>
    <div style="MARGIN-TOP: 35pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">This
      prospectus relates to the resale of up to 4,525,058 depositary units of American
      Real Estate Partners, L.P. that may be offered and sold from time to time by
      the
      selling securityholders named in this prospectus and the persons to whom such
      selling securityholders may transfer their depositary units.</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">These
      depositary units include the 4,525,058 depositary units initially issuable
      upon
      conversion of American Real Estate Partner, L.P.&#8217;s Variable Rate Senior
      Convertible Notes due 2013, or the convertible notes. This prospectus also
      relates to any additional depositary units issuable upon conversion of the
      convertible notes in the event of a stock split, stock dividend or similar
      transaction involving the amount of depositary units of the Registrant.</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">We will
      not
      receive any proceeds from the sale of the depositary units covered by this
      prospectus.</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Our
      depositary units are listed on the New York Stock Exchange under the symbol
      &#8220;ACP.&#8221;</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 30pt; TEXT-INDENT: 18pt"><strong>Investing
      in our depositary units involves some risk. See &#8220;Risk Factors&#8221; beginning on page
      4.</strong></div>
    <div style="FONT-SIZE: 11pt; MARGIN: 0pt; LINE-HEIGHT: 13pt" align="center">&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;</div>
    <div style="MARGIN-TOP: 30pt; MARGIN-BOTTOM: 30pt; TEXT-INDENT: 18pt"><strong>Neither
      the Securities and Exchange Commission nor any state securities commission
      has
      approved or disapproved of these depositary units or passed upon the adequacy
      or
      accuracy of this prospectus. Any representation to the contrary is a criminal
      offense.</strong></div>
    <div style="FONT-SIZE: 11pt; MARGIN: 0pt; LINE-HEIGHT: 13pt" align="center">&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;</div>
    <div style="MARGIN-TOP: 30pt; MARGIN-BOTTOM: 0pt" align="center"><strong>The
      date
      of this prospectus is
&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
      2007</strong></div>
    <div style="MARGIN-TOP: 30pt; MARGIN-BOTTOM: 0pt" align="center"><br><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">

<div style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 13.35pt; PAGE-BREAK-BEFORE: always" align="center"><strong><a name="toc"></a>TABLE
  OF CONTENTS</strong></div>
    <div>

  <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">
    <tr>
      <td width="427"> </td>
      <td width="15"> </td>
      <td width="25"> </td>
    </tr>
    <tr>
      <td valign="bottom" width="569">&#160;</td>
      <td valign="top" width="20"> <div style="FONT-SIZE: 8pt; MARGIN: 0pt" align="center"><strong>&#160;&#160;&#160;&#160;&#160;</strong></div></td>
      <td valign="bottom" width="33" style="border-bottom: #000000 0.5pt solid;">
        <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Page</strong></div></td>
    </tr>
    <tr>
      <td valign="bottom" width="569">&#160;</td>
      <td valign="top" width="20">&#160;</td>
      <td valign="bottom" width="33">&#160;</td>
    </tr>
    <tr bgcolor="#ccffcc">
      <td valign="bottom" width="569"> <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 36pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 10.35pt"><a href="#1">Forward-Looking
          Statements</a></div></td>
      <td valign="top" width="20">&nbsp;</td>
      <td valign="bottom" width="33"> <div style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 1.65pt" align="right"><a href="#1">1</a></div></td>
    </tr>
    <tr bgcolor="white">
      <td valign="bottom" width="569"> <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 36pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 10.35pt"><a href="#2">About
          This Prospectus</a></div></td>
      <td valign="top" width="20">&nbsp;</td>
      <td valign="bottom" width="33"> <div style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 1.65pt" align="right"><a href="#2">3</a></div></td>
    </tr>
    <tr bgcolor="#ccffcc">
      <td valign="bottom" width="569"> <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 36pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 10.35pt"><a href="#3">Risk
          Factors</a></div></td>
      <td valign="top" width="20">&#160;</td>
      <td valign="bottom" width="33"> <div style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 1.65pt" align="right"><a href="#3">4</a></div></td>
    </tr>
    <tr bgcolor="white">
      <td valign="bottom" width="569"> <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 36pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 10.35pt"><a href="#4">Unaudited
          Pro Forma Condensed Combined Financial Statements</a></div></td>
      <td valign="top" width="20">&#160;</td>
      <td valign="bottom" width="33"> <div style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 1.65pt" align="right"><a href="#4">16</a></div></td>
    </tr>
    <tr bgcolor="#ccffcc">
      <td valign="bottom" width="569"> <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 36pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 10.35pt"><a href="#5">Use
          of Proceeds</a></div></td>
      <td valign="top" width="20">&#160;</td>
      <td valign="bottom" width="33"> <div style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 1.65pt" align="right"><a href="#5">26</a></div></td>
    </tr>
    <tr bgcolor="white">
      <td valign="bottom" width="569"> <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 36pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 10.35pt"><a href="#6">Dilution</a></div></td>
      <td valign="top" width="20">&#160;</td>
      <td valign="bottom" width="33"> <div style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 1.65pt" align="right"><a href="#6">26</a></div></td>
    </tr>
    <tr bgcolor="#ccffcc">
      <td valign="bottom" width="569"> <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 36pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 10.35pt"><a href="#7">Description
          of Depositary Units</a></div></td>
      <td valign="top" width="20">&#160;</td>
      <td valign="bottom" width="33"> <div style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 1.65pt" align="right"><a href="#4">27</a></div></td>
    </tr>
    <tr bgcolor="white">
      <td valign="bottom" width="569"> <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 36pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 10.35pt"><a href="#8">Our
          Partnership Agreement and Certain Provisions of Delaware Law</a></div></td>
      <td valign="top" width="20">&#160;</td>
      <td valign="bottom" width="33"> <div style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 1.65pt" align="right"><a href="#5">30</a></div></td>
    </tr>
    <tr bgcolor="#ccffcc">
      <td valign="bottom" width="569"> <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 36pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 10.35pt"><a href="#9">Selling
          Securityholders</a></div></td>
      <td valign="top" width="20">&#160;</td>
      <td valign="bottom" width="33"> <div style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 1.65pt" align="right"><a href="#7">36</a></div></td>
    </tr>
    <tr bgcolor="white">
      <td valign="bottom" width="569"> <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 36pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 10.35pt"><a href="#10">Plan
          of Distribution</a></div></td>
      <td valign="top" width="20">&#160;</td>
      <td valign="bottom" width="33"> <div style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 1.65pt" align="right"><a href="#10">38</a></div></td>
    </tr>
    <tr bgcolor="#ccffcc">
      <td valign="bottom" width="569"> <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 36pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 10.35pt"><a href="#11">Legal
          Matters</a></div></td>
      <td valign="top" width="20">&#160;</td>
      <td valign="bottom" width="33"> <div style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 1.65pt" align="right"><a href="#11">39</a></div></td>
    </tr>
    <tr bgcolor="white">
      <td valign="bottom" width="569"> <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 36pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 10.35pt"><a href="#12">Experts</a></div></td>
      <td valign="top" width="20">&#160;</td>
      <td valign="bottom" width="33"> <div style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 1.65pt" align="right"><a href="#12">39</a></div></td>
    </tr>
    <tr bgcolor="#ccffcc">
      <td valign="bottom" width="569"> <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 36pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 10.35pt"><a href="#13">Where
          You Can Find More Information</a></div></td>
      <td valign="top" width="20">&#160;</td>
      <td valign="bottom" width="33"> <div style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 1.65pt" align="right"><a href="#13">40</a></div></td>
    </tr>
    <tr bgcolor="white">
      <td valign="bottom" width="569"> <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 36pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 10.35pt"><a href="#14">Incorporation
          of Certain Documents by Reference</a></div></td>
      <td valign="top" width="20">&#160;</td>
      <td valign="bottom" width="33"> <div style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 1.65pt" align="right"><a href="#14">40</a></div></td>
    </tr>
    <tr bgcolor="#ccffcc">
      <td valign="bottom" width="569"> <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 36pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 10.35pt"><a href="#15">Index
          to Financial Statements</a></div></td>
      <td valign="top" width="20">&#160;</td>
      <td valign="bottom" width="33"> <div style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 1.65pt" align="right"><a href="#12">F-1</a></div></td>
    </tr>
  </table>
    </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">You
      should rely only on the information contained in this document or to which
      we
      have referred you. We have not authorized anyone to provide you with information
      that is different. This document may only be used where it is legal to sell
      securities. The information in this document may only be accurate on the date
      of
      this document.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">i</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
          <p align="left"> <strong><a href="#toc">Back to Table of Contents</a></strong></p>
 <p align="center"> <strong><a name="1"></a>FORWARD-LOOKING STATEMENTS</strong></p></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">This
      prospectus and the information incorporated herein by reference contain
&#8220;forward-looking statements&#8221; within the meaning of Section 21E of the Securities
      Exchange Act of 1934, as amended, or the Exchange Act; Section 27A of the
      Securities Act of 1933, as amended, or the Securities Act; and pursuant to
      the
      Private Securities Litigation Reform Act. These forward-looking statements
      are
      not historical facts, but rather our beliefs and expectations based on our
      current expectations, estimates, projections, beliefs and assumptions about
      our
      company and industry. Words such as &#8220;anticipates,&#8221; &#8220;expects,&#8221; &#8220;intends,&#8221;
&#8220;plans,&#8221; &#8220;believes,&#8221; &#8220;seeks,&#8221; &#8220;estimates&#8221; and similar expressions are intended
      to identify forward-looking statements. There statements are not guarantees
      of
      future performance and are subject to risks, uncertainties and other factors,
      some of which are beyond our control, are difficult to predict and could cause
      actual results to differ materially from those expressed or forecasted in the
      forward-looking statements. These risks include those set forth in the section
      of this prospectus called &#8220;Risk Factors.&#8221;</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Those
      risks are representative of factors that could affect the outcome of the
      forward-looking statements. These and the other factors discussed elsewhere
      in
      this prospectus and the documents incorporated by reference herein are not
      necessarily all of the important factors that cause our results to differ
      materially from those expressed in our forward-looking statements. We caution
      you not to place undue reliance on these forward-looking statements, which
      reflect our view only as of the respective dates of this prospectus and the
      documents incorporated herein by reference or other dates that are specified
      in
      those documents.</div>
    <div style="MARGIN: 0pt" align="center"><br><br></div>
    <div style="MARGIN: 0pt" align="center">1</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
        <p align="left"> <strong><a href="#toc">Back to Table of Contents</a></strong></p>
<p align="center"> <strong>OUR
      COMPANY</strong></p></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">American
      Real Estate Partners, L.P., or AREP, is a master limited partnership formed
      in
      Delaware on February&#160;17, 1987. We are a diversified holding company owning
      subsidiaries engaged in the following operating businesses: gaming, real estate
      and home fashion. On April 22, 2007, American Entertainment Properties Corp.,
      or
      AEP, a wholly owned indirect subsidiary of AREP, entered into a purchase
      agreement with W2007/ACEP Holdings, LLC, an affiliate of Whitehall Street Real
      Estate Funds, a series of real estate investment funds affiliated with Goldman,
      Sachs &amp; Co., or Whitehall Street Real Estate Funds, to sell all of the
      issued and outstanding membership interests of American Casino &amp;
Entertainment Properties, LLC, or ACEP, which comprises our gaming operations.
      The parties expect to close the transaction in approximately December 2007.
      On
      February 9, 2007, we entered into an agreement and plan of merger, pursuant
      to
      which we would acquire Lear Corporation, or Lear, a publicly traded company
      that
      provides automotive interior systems worldwide, for an aggregate consideration
      of approximately $5.2 billion, including the assumption by the surviving entity
      of certain outstanding indebtedness of Lear and refinancing of Lear&#8217;s existing
      term loan and credit facility. The consummation of the transaction is subject
      to
      regulatory approvals and shareholder vote.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Our
      primary business strategy is to continually evaluate our existing operating
      businesses with a view to maximizing value to our depositary unitholders. We
      may
      also seek to acquire additional businesses that are distressed or in
      out-of-favor industries and will consider the divestiture of businesses. In
      addition, we invest our available liquidity in debt and equity securities with
      a
      view to enhancing returns as we continue to assess further acquisitions of
      operating businesses.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Our
      general partner is American Property Investors, Inc., the general partner,
      or
      API, a Delaware corporation, which is indirectly wholly owned by Carl C. Icahn.
      We own our businesses and conduct our investment activities through a subsidiary
      limited partnership, American Real Estate Holdings Limited Partnership, or
      AREH,
      in which we own a 99% limited partnership interest, and its subsidiaries. API
      also acts as the general partner for AREH. API has a 1% general partnership
      interest in each of us and AREH. As of March 31, 2007, affiliates of
      Mr.&#160;Icahn beneficially owned 55,655,382 units representing AREP limited
      partner interests, or the depositary units, representing approximately 90%
      of
      the outstanding depositary units, and 10,304,013 cumulative pay-in-kind
      redeemable preferred units, representing AREP limited partner interests, or
      the
      preferred units, representing approximately 86.5% of the outstanding preferred
      units.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Our
      depositary units, representing limited partnership interests, trade on the
      New
      York Stock Exchange under the symbol &#8220;ACP.&#8221;</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">As used
      in this prospectus, &#8220;we,&#8221; &#8220;us,&#8221; &#8220;our,&#8221; &#8220;company&#8221; and &#8220;AREP&#8221; mean American Real
      Estate Partners, L.P., and, unless the context indicates otherwise, include
      our
      subsidiaries.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Our
      principal executive offices are located at 767 Fifth Avenue, Suite 4700, New
      York, New York 10153. Our phone number is (212) 702-4300. Our website address
      is
<i>http:// www.AREP.com.</i></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">2</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">

<div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
        <p align="left"> <strong><a href="#toc">Back to Table of Contents</a></strong></p>
<p align="center"><strong><a name="2"></a>ABOUT
  THIS PROSPECTUS</strong></p></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">We are
      registering for resale by the selling securityholders up to 4,525,058 depositary
      units issuable upon conversion of the convertible notes, and any additional
      depositary units issuable upon conversion of the convertible notes in the event
      of a stock split, stock dividend or similar transaction involving the amount
      of
      depositary units of the Registrant. This prospectus is part of a Registration
      Statement that the selling securityholders filed with the Securities and
      Exchange Commission, or the SEC, using a &#8220;shelf&#8221; registration process. Under
      this shelf process, we may offer, from time to time depositary units. This
      prospectus does not contain all of the information included in the Registration
      Statement. The registration statement filed with the SEC includes exhibits
      that
      provide more details about the matters discussed in this prospectus.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">We will
      not receive any of the proceeds from the sale by the selling securityholders
      of
      the depositary units. We will bear all fees and expenses incident to our
      obligation to register the depositary units. We may suspend the use of this
      prospectus for a period not to exceed sixty days in the aggregate during any
      twelve-month period, in each case for valid business reasons, to be determined
      in good faith by AREP in its reasonable judgment (which shall not include the
      avoidance of AREP&#8217;s obligations hereunder), including, without limitation, the
      acquisition or divestiture of assets, pending corporate developments, public
      filings with the SEC and similar events.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">You
      should carefully read this prospectus, the related exhibits filed with the
      SEC
      and any prospectus supplement, together with the additional information
      described below under the headings &#8220;Where You Can Find More Information&#8221; and
&#8220;Incorporation by Reference.&#8221; This prospectus incorporates important business
      and financial information about us that is not included in or delivered with
      this prospectus. We will provide without charge to each person to whom a copy
      of
      this prospectus is delivered, upon written or oral request of that person,
      a
      copy of any and all of this information. Requests for copies should be directed
      to Investor Relations Department, American Real Estate Partners, L.P., 769
      Fifth
      Avenue, Suite 4700, New York, New York 10153; (212) 702-4300. Our web site
      address is http://www.AREP.com. You should request this information at least
      five business days in advance of the date on which you expect to make your
      decision with respect to the exchange offer.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">You
      should rely only on the information contained or incorporated by reference
      in
      this prospectus and in any accompanying prospectus supplement. We have not
      authorized any other person to provide you with different information. If anyone
      provides you with different or inconsistent information, you should not rely
      on
      it. You should assume that the information appearing in this prospectus, any
      prospectus supplement and any other document incorporated by reference is
      accurate only as of the date on the front cover of those documents. We do not
      imply that there has been no change in the information contained in this
      prospectus or in our affairs since that date by delivering this
      prospectus.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">3</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">

    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
        <p align="left"> <strong><a href="#toc">Back to Table of Contents</a></strong></p>
<p align="center"> <strong><a name="3"></a>RISK
  FACTORS</strong></p></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Investing
      in our depositary units involves risks that could affect us and our business
      as
      well as the industries in which we operate and invest. Before purchasing our
      depositary units, you should carefully consider the following risks and the
      other information in this prospectus and any applicable prospectus supplement,
      as well as the documents incorporated by reference herein. Each of the risks
      described could result in a decrease in the value of our depositary units and
      your investment in them.</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>Risks Relating to
      Our
      Structure</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>Our general partner
      and its control person could exercise their influence over us to your
      detriment.</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Mr.&#160;Icahn,
      through affiliates, currently owns 100% of API, our general partner, and
      approximately 86.5% of our outstanding preferred units and approximately 90%
      of
      our depositary units, and, as a result, has the ability to influence many
      aspects of our operations and affairs, including the timing and amount of any
      distribution to unitholders. API also is the general partner of AREH.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      interests of Mr.&#160;Icahn, including his interests in entities in which he and
      we have invested or may invest in the future, may differ from your interests
      as
      a unitholder and, as such, he may take actions that may not be in your interest.
      For example, if we encounter financial difficulties or are unable to pay our
      debts as they mature, Mr.&#160;Icahn&#8217;s interests might conflict with your
      interests.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">In
      addition, if Mr.&#160;Icahn were to sell, or otherwise transfer, some or all of
      his interests in us to an unrelated party or group, a change of control could
      be
      deemed to have occurred under the terms of the indentures governing certain
      of
      our notes which would require us to offer to repurchase all such outstanding
      notes at 101% of their principal amount plus accrued and unpaid interest and
      liquidated damages, if any, to the date of repurchase. In the case of the
      convertible notes, we also would be obligated to make a &#8220;make whole&#8221; payment in
      the form of additional depositary units to any holder of convertible notes
      who
      converts such notes following a change of control. However, it is possible
      that
      we will not have sufficient funds at the time of the change of control to make
      the required repurchase of such notes.</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>We have engaged,
      and in the future may engage, in transactions with our
      affiliates.</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">We have
      invested and may in the future invest in entities in which Mr.&#160;Icahn also
      invests. We also have purchased and may in the future purchase entities or
      investments from him or his affiliates. Although API has never received fees
      in
      connection with our investments, our partnership agreement allows for the
      payment of these fees. Mr.&#160;Icahn may pursue other business opportunities in
      industries in which we compete and there is no requirement that any additional
      business opportunities be presented to us.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">We have
      entered into an agreement and plan of merger pursuant to which we would acquire
      all of the issued and outstanding common stock of Lear for an aggregate
      consideration of approximately $5.2 billion, including the assumption by the
      surviving entity of certain outstanding indebtedness of Lear and the refinancing
      of Lear&#8217;s existing term loan and credit facility. The consummation of the
      transaction is subject to regulatory approvals and shareholder vote.
      Mr.&#160;Icahn beneficially owns approximately 16.0% of Lear&#8217;s outstanding
      common stock.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Mr. Icahn
previously proposed that we acquire his interest in American Railcar, Inc., or American Railcar, and Philip
Services Corporation, or Philip Services. American Railcar is a publicly traded company that is primarily engaged in the
business of manufacturing covered hoppers and tank railcars.  Philip Services is an industrial services company that
provides industrial outsourcing, environmental services and metal services to major industry sectors throughout North
America. A committee of independent directors of the board was formed to consider those proposals. Currently, at Mr.
Icahn&#8217;s request, only the proposal regarding the potential acquisition of the metal services business of Philip Services
is being considered by the committee. Any acquisition would be subject to, among other things, the negotiation, execution
and closing of a definitive agreement and the receipt of a fairness opinion. We continuously identify, evaluate and
engage in discussions concerning potential investments and acquisitions, including potential investments in and
acquisitions of affiliates of Mr. Icahn. There cannot be any assurance that any potential transactions that we consider
will be completed.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">4</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">

<div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt; PAGE-BREAK-BEFORE: always">
  <p><strong><a href="#toc">Back to Table of Contents</a></strong></p>
  <p><strong><i>Certain of our management are committed to the management of other
    businesses.</i></strong></p>
  </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Certain
      of the individuals who conduct the affairs of API, including the chairman of
      our
      board of directors, Mr.&#160;Icahn, our principal executive officer and vice
      chairman of the board of directors, Keith A. Meister, and our president, Peter
      K. Shea, are, and will be, committed to the management of other businesses
      owned
      or controlled by Mr.&#160;Icahn and his affiliates. Accordingly, these
      individuals may focus significant amounts of time and attention on managing
      these other businesses. Conflicts may arise in the future between our interests
      and the other entities or business activities in which such individuals are
      involved. Conflicts of interest may arise in the future as we may compete with
      such affiliates for the same assets, purchasers and sellers of assets or
      financings.</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>To service our
      indebtedness and pay distributions with respect to our depositary units, we
      will
      require a significant amount of cash. Our ability to maintain our current cash
      position or generate cash depends on many factors beyond our
      control.</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Our
      ability to make payments on and to refinance our indebtedness, to pay
      distributions with respect to our depositary units and to fund operations will
      depend on existing cash balances and our ability to generate cash in the future.
      This, to a certain extent, is subject to general economic, financial,
      competitive, regulatory and other factors that are beyond our control.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Our
      current businesses and businesses that we acquire may not generate sufficient
      cash to service our debt. In addition, we may not generate sufficient cash
      flow
      from operations or investments and future borrowings may not be available to
      us
      in an amount sufficient to enable us to service our indebtedness or to fund
      our
      other liquidity needs. We may need to refinance all or a portion of our
      indebtedness on or before maturity. We cannot assure you that we will be able
      to
      refinance any of our indebtedness on commercially reasonable terms or at
      all.</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>We are a holding
      company and will depend on the businesses of our subsidiaries to satisfy our
      obligations.</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">We are
      a
      holding company. In addition to cash and cash equivalents, U.S. government
      and
      agency obligations, marketable equity and debt securities and other short-term
      investments, our assets consist primarily of investments in our subsidiaries.
      Moreover, if we make significant investments in operating businesses, it is
      likely that we will reduce the liquid assets at AREP and AREH in order to fund
      those investments and the ongoing operations of our subsidiaries. Consequently,
      our cash flow and our ability to meet our debt service obligations and make
      distributions with respect to depositary units and preferred units likely will
      depend on the cash flow of our subsidiaries and the payment of funds to us
      by
      our subsidiaries in the form of dividends, distributions, loans or
      otherwise.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      operating results of our subsidiaries may not be sufficient to make
      distributions to us. In addition, our subsidiaries are not obligated to make
      funds available to us, and distributions and intercompany transfers from our
      subsidiaries to us may be restricted by applicable law or covenants contained
      in
      debt agreements and other agreements to which these subsidiaries may be subject
      or enter into in the future. The terms of any borrowings of our subsidiaries
      or
      other entities in which we own equity may restrict dividends, distributions
      or
      loans to us. For example, the notes issued by our indirect wholly owned
      subsidiary, ACEP, contain restrictions on dividends and distributions and loans
      to us, as well as on other transactions with us. ACEP also has a credit
      agreement which contains financial covenants that have the effect of restricting
      dividends or distributions. This agreement precludes our receiving payments
      from
      the operations of our gaming properties which account for a significant portion
      of our revenues and cash flows. We have credit facilities for WestPoint
      International, Inc., or WPI, our majority owned subsidiary, and our real estate
      development properties that also restrict dividends, distributions and other
      transactions with us. To the degree any distributions and transfers are impaired
      or prohibited, our ability to make payments on our debt will be limited.</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>We or our
      subsidiaries may be able to incur substantially more debt.</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">We or
      our
      subsidiaries may be able to incur substantial additional indebtedness in the
      future. The terms of our 8.125% senior notes due 2012, our 7.125% senior notes
      due 2013 and our Variable Rate Senior Convertible Notes due 2013 do not prohibit
      us or our subsidiaries from doing so. We and AREH may incur additional
      indebtedness if we comply with certain financial tests contained in the
      indentures that govern these notes. As of March 31, 2007, based on these tests,
      we and AREH could have incurred up to approximately $1.4 billion of additional
      indebtedness. Since that date, we issued $600.0 million principal amount of
      our
      Variable Rate Senior Convertible Notes due 2013, reducing the amount that we
      and
      AREH could incur based upon this test. If we complete the acquisition of Lear
      and </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">5</div>
    <div style="MARGIN: 0pt"><br></div>
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  <p>fund the acquisition with borrowings, as we currently contemplate, under
    the financial tests contained in the indentures, AREP and AREH will not be
    able to incur additional indebtedness. However, our subsidiaries, other than
    AREH, are not subject to any of the covenants contained in the indentures
    with respect to our senior notes, including the covenant restricting debt
    incurrence. If new debt is added to our and our subsidiaries&#8217; current
    debt levels, the related risks that we, and they, now face could intensify.</p>
</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>Our failure to
      comply with the covenants contained under any of our debt instruments, including
      the indentures governing our outstanding notes, including our failure as a
      result of events beyond our control, could result in an event of default which
      would materially and adversely affect our financial
      condition.</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">If there
      were an event of default under one of our debt instruments, the holders of
      the
      defaulted debt could cause all amounts outstanding with respect to that debt
      to
      be due and payable immediately. In addition, any event of default or declaration
      of acceleration under one debt instrument could result in an event of default
      under one or more of our other debt instruments. It is possible that, if the
      defaulted debt is accelerated, our assets and cash flow may not be sufficient
      to
      fully repay borrowings under our outstanding debt instruments and we cannot
      assure you that we would be able to refinance or restructure the payments on
      those debt securities.</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>The market for
      our
      securities may be volatile.</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      market for our equity securities may be subject to disruptions that could cause
      substantial volatility in their prices. Any such disruptions may adversely
      affect the value of your securities.</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>We have only
      recently made cash distributions to our unitholders, and future distributions,
      if any, can be affected by numerous factors.</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">While
      we
      made cash distributions with respect to each of the four quarters of 2006 in
      the
      amount of $0.10 per depositary unit and the first quarter of 2007 in the amount
      of $0.15 per depositary unit, the payment of future distributions will be
      determined by the board of directors of our general partner quarterly, based
      on
      a review of a number of factors, including those described below and other
      factors that it deems relevant at the time that declaration of a distribution
      is
      considered. Our ability to pay distributions will depend on numerous factors,
      including the availability of adequate cash flow from operations; the proceeds,
      if any, from divestitures; our capital requirements and other obligations;
      restrictions contained in our financing arrangements; and our issuances of
      additional equity and debt securities. The availability of cash flow in the
      future depends as well upon events and circumstances outside our control,
      including prevailing economic and industry conditions and financial, business
      and similar factors. No assurance can be given that we will be able to make
      distributions or as to the timing of any distribution. If distributions are
      made, there can be no assurance that holders of depositary units may not be
      required to recognize taxable income in excess of cash distributions made in
      respect of the period in which a distribution is made.</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>Holders of our
      depositary units have limited voting rights, rights to participate in our
      management and control of us.</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Our
      general partner manages and operates AREP. Unlike the holders of common stock
      in
      a corporation, holders of our outstanding depositary units have only limited
      voting rights on matters affecting our business. Holders of depositary units
      have no right to elect the general partner on an annual or other continuing
      basis, and our general partner generally may not be removed except pursuant
      to
      the vote of the holders of not less than 75% of the outstanding depositary
      units. In addition, removal of the general partner may result in a default
      under
      our debt securities. As a result, holders of depositary units have limited
      say
      in matters affecting our operations and others may find it difficult to attempt
      to gain control or influence our activities.</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>Holders of
      depositary units may not have limited liability in certain circumstances and
      may
      be liable for the return of distributions that cause our liabilities to exceed
      our assets.</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">We
      conduct our businesses through AREH in several states. Maintenance of limited
      liability will require compliance with legal requirements of those states.
      We
      are the sole limited partner of AREH. Limitations on the liability of a limited
      partner for the obligations of a limited partnership have not clearly been
      established in several states. If it were determined that AREH has been
      conducting business in any state without compliance with the applicable limited
      partnership statute or the possession or exercise of the right by the
      partnership, as limited partner </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">6</div>
    <div style="MARGIN: 0pt"><br></div>
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  <p>of AREH, to remove its general partner, to approve certain amendments to
    the AREH partnership agreement or to take other action pursuant to the AREH
    partnership agreement constituted &#8220;control&#8221; of AREH&#8217;s business
    for the purposes of the statutes of any relevant state, AREP and/or unitholders,
    under certain circumstances, might be held personally liable for AREH&#8217;s
    obligations to the same extent as our general partner. Further, under the
    laws of certain states, AREP might be liable for the amount of distributions
    made to AREP by AREH.</p>
  </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Holders
      of our depositary units may also have to repay AREP amounts wrongfully
      distributed to them. Under Delaware law, we may not make a distribution to
      holders of common units if the distribution causes our liabilities to exceed
      the
      fair value of our assets. Liabilities to partners on account of their
      partnership interests and nonrecourse liabilities are not counted for purposes
      of determining whether a distribution is permitted. Delaware law provides that
      a
      limited partner who receives such a distribution and knew at the time of the
      distribution that the distribution violated Delaware law will be liable to
      the
      limited partnership for the distribution amount for three years from the
      distribution date.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Additionally,
      under Delaware law an assignee who becomes a substituted limited partner of
      a
      limited partnership is liable for the obligations, if any, of the assignor
      to
      make contributions to the partnership. However, such an assignee is not
      obligated for liabilities unknown to him or her at the time he or she became
      a
      limited partner if the liabilities could not be determined from the partnership
      agreement.</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>We may be subject
      to the pension liabilities of our affiliates.</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Mr.&#160;Icahn,
      through certain affiliates, currently owns 100% of API and approximately 90%
      of
      our outstanding depositary units and 86.5% of our outstanding preferred units.
      Applicable pension and tax laws make each member of a &#8220;controlled group&#8221; of
      entities, generally defined as entities in which there are at least an 80%
      common ownership interest, jointly and severally liable for certain pension
      plan
      obligations of any member of the controlled group. These pension obligations
      include ongoing contributions to fund the plan, as well as liability for any
      unfunded liabilities that may exist at the time the plan is terminated. In
      addition, the failure to pay these pension obligations when due may result
      in
      the creation of liens in favor of the pension plan or the Pension Benefit
      Guaranty Corporation, or the PBGC, against the assets of each member of the
      controlled group.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 11pt">As
      a result of the more than 80% ownership interest in us by Mr.&#160;Icahn&#8217;s
      affiliates, we and our subsidiaries are subject to the pension liabilities
      of
      all entities in which Mr.&#160;Icahn has a direct or indirect ownership interest
      of at least 80%. One such entity, ACF Industries LLC, or ACF, is the sponsor
      of
      several pension plans which, as of December 31, 2006, were not underfunded
      on an
      ongoing actuarial basis but would be underfunded by approximately $87.2 million
      if those plans were terminated, as most recently reported by the plans&#8217;
actuaries. These liabilities could increase or decrease, depending on a number
      of factors, including future changes in promised benefits, investment returns
      and the assumptions used to calculate the liability. As members of the
      controlled group, we would be liable for any failure of ACF to make ongoing
      pension contributions or to pay the unfunded liabilities upon a termination
      of
      the ACF pension plans. In addition, other entities now or in the future within
      the controlled group that includes us may have pension plan obligations that
      are, or may become, underfunded and we would be liable for any failure of such
      entities to make ongoing pension contributions or to pay the unfunded
      liabilities upon a termination of such plans.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      current underfunded status of the ACF pension plans requires ACF to notify
      the
      PBGC of certain &#8220;reportable events,&#8221; such as if we cease to be a member of the
      ACF controlled group, or if we make certain extraordinary dividends or stock
      redemptions. The obligation to report could cause us to seek to delay or
      reconsider the occurrence of such reportable events.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Starfire
      Holding Corporation, or Starfire, which is 100% owned by Mr.&#160;Icahn, has
      undertaken to indemnify us and our subsidiaries from losses resulting from
      any
      imposition of certain pension funding or termination liabilities that may be
      imposed on us and our subsidiaries or our assets as a result of being a member
      of the Icahn controlled group. The Starfire indemnity (which does not extend
      to
      pension liabilities of our subsidiaries that would be imposed on us as a result
      of our interest in these subsidiaries and not as a result of Mr.&#160;Icahn&#8217;s
      and his affiliates&#8217; more than 80% ownership interest in us) provides, among
      other things, that so long as such contingent liabilities exist and could be
      imposed on us, Starfire will not make any distributions to its stockholders
      that
      would reduce its net worth to below $250.0 million. Nonetheless, Starfire may
      not be able to fund its indemnification obligations to us.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">7</div>
    <div style="MARGIN: 0pt"><br></div>
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  <p><strong><i>We are subject to the risk of possibly becoming an investment
    company.</i></strong></p>
</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Because
      we are a holding company and a significant portion of our assets may, from
      time
      to time, consist of investments in companies in which we own less than a 50%
      interest, we run the risk of inadvertently becoming an investment company that
      is required to register under the Investment Company Act of 1940, as amended,
      or
      the Investment Company Act. Registered investment companies are subject to
      extensive, restrictive and potentially adverse regulation relating to, among
      other things, operating methods, management, capital structure, dividends and
      transactions with affiliates. Registered investment companies are not permitted
      to operate their business in the manner in which we operate our business, nor
      are registered investment companies permitted to have many of the relationships
      that we have with our affiliated companies.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">In order
      not to become an investment company required to register under the Investment
      Company Act, we monitor the value of our investments and structure transactions
      with an eye toward the Investment Company Act. As a result, we may structure
      transactions in a less advantageous manner than if we did not have Investment
      Company Act concerns, or we may avoid otherwise economically desirable
      transactions due to those concerns. In addition, events beyond our control,
      including significant appreciation or depreciation in the market value of
      certain of our publicly traded holdings or adverse developments with respect
      to
      our ownership of certain of our subsidiaries, such as our loss of control of
      WPI, could result in our inadvertently becoming an investment company.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">If it
      were established that we were an investment company, there would be a risk,
      among other material adverse consequences, that we could become subject to
      monetary penalties or injunctive relief, or both, in an action brought by the
      SEC, that we would be unable to enforce contracts with third parties or that
      third parties could seek to obtain rescission of transactions with us undertaken
      during the period it was established that we were an unregistered investment
      company.</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>We may become
      taxable as a corporation.</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 11pt">We
      believe that we have been and are properly treated as a partnership for federal
      income tax purposes. This allows us to pass through our income and deductions
      to
      our partners. However, the Internal Revenue Service, or IRS, could challenge
      our
      partnership status and we could fail to qualify as a partnership for past years
      as well as future years. Qualification as a partnership involves the application
      of highly technical and complex provisions of the Internal Revenue Code of
      1986,
      as amended. For example, a publicly traded partnership is generally taxable
      as a
      corporation unless 90% or more of its gross income is &#8220;qualifying&#8221; income, which
      includes interest, dividends, oil and gas revenues, real property rents, gains
      from the sale or other disposition of real property, gain from the sale or
      other
      disposition of capital assets held for the production of interest or dividends,
      and certain other items. We believe that in all prior years of our existence
      at
      least 90% of our gross income was qualifying income and we intend to structure
      our business in a manner such that at least 90% of our gross income will
      constitute qualifying income this year and in the future. However, there can
      be
      no assurance that such structuring will be effective in all events to avoid
      the
      receipt of more than 10% of non-qualifying income. If less than 90% of our
      gross
      income constitutes qualifying income, we may be subject to corporate tax on
      our
      net income, at a federal rate of up to 35% plus possible state taxes. Further,
      if less than 90% of our gross income constituted qualifying income for past
      years, we may be subject to corporate level tax plus interest and possibly
      penalties. In addition, if we register under the Investment Company Act, it
      is
      likely that we would be treated as a corporation for U.S. federal income tax
      purposes. The cost of paying federal and possibly state income tax, either
      for
      past years or going forward, could be a significant liability and would reduce
      our funds available to make distributions to holders of units, and to make
      interest and principal payments on our debt securities. To meet the qualifying
      income test, we may structure transactions in a manner that is less advantageous
      than if this were not a consideration, or we may avoid otherwise economically
      desirable transactions. Recently proposed legislation may affect the status
      of
      publicly traded partnerships such as AREP. Although as proposed the legislation
      would not impact AREP&#8217;s status as a partnership for tax purposes, it is unclear
      whether such legislation would be enacted or, if enacted, what its final form
      and effect would be.</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>Holders of
      depositary units may be required to pay tax on their share of our income even
      if
      they did not receive cash distributions from us.</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Because
      we are treated as a partnership for income tax purposes, holders of depositary
      units are generally required to pay federal income tax, and, in some cases,
      state or local income tax, on the portion of our taxable income allocated to
      them, whether or not such income is distributed. Accordingly, it is possible
      that holders of </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">8</div>
    <div style="MARGIN: 0pt"><br></div>
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  <p>depositary units may not receive cash distributions from us equal to their
    share of our taxable income, or even equal to their tax liability on the portion
    of our income allocated to them.</p>
</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>If we discover
      significant deficiencies in our internal controls over financial reporting
      or at
      any recently acquired entity, it may adversely affect our ability to provide
      timely and reliable financial information and satisfy our reporting obligations
      under federal securities laws, which also could affect the market price of
      our
      depositary units or our ability to remain listed with the New York Stock
      Exchange.</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Effective
      internal and disclosure controls are necessary for us to provide reliable
      financial reports and effectively prevent fraud and to operate successfully
      as a
      public company. If we cannot provide reliable financial reports or prevent
      fraud, our reputation and operating results would be harmed. As of December
      31,
      2006, we completed remediation of previously reported significant deficiencies
      in internal controls, as defined under interim standards adopted by the Public
      Company Accounting Oversight Board, or PCAOB &#8211; two at the holding company and
      one at a subsidiary. A &#8220;significant deficiency&#8221; is a control deficiency, or
      combination of control deficiencies, that adversely affects a company&#8217;s ability
      to initiate, authorize, record, process or report external financial data
      reliably in accordance with generally accepted accounting principles such that
      there is a more than remote likelihood that a misstatement of a company&#8217;s annual
      or interim financial statements that is more than inconsequential will not
      be
      prevented or detected.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">To the
      extent that any material weakness or significant deficiency exists in our or
      our
      consolidated subsidiaries&#8217; internal control over financial reporting, such
      material weakness or significant deficiency may adversely affect our ability
      to
      provide timely and reliable financial information necessary for the conduct
      of
      our business and satisfaction of our reporting obligations under federal
      securities laws, which could affect our ability to remain listed with the New
      York Stock Exchange. Ineffective internal and disclosure controls could cause
      investors to lose confidence in our reported financial information, which could
      have a negative effect on the trading price of our depositary units or the
      rating of our debt.</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>Since we are
      a
      limited partnership, you may not be able to pursue legal claims against us
      in
      U.S. federal courts.</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">We are
      a
      limited partnership organized under the laws of the state of Delaware. Under
      the
      rules of federal civil procedure, you may not be able to sue us in federal
      court
      on claims other than those based solely on federal law, because of lack of
      complete diversity. Case law applying diversity jurisdiction deems us to have
      the citizenship of each of our limited partners. Because we are a publicly
      traded limited partnership, it may not be possible for you to attempt to sue
      us
      in a federal court because we have citizenship in all 50 U.S. states and
      operations in many states. Accordingly, you will be limited to bring any claims
      in state court. Furthermore, American Real Estate Finance Corp., our corporate
      co-issuer for our notes, has only nominal assets and no operations. While you
      may be able to sue the corporate co-issuer in a federal court, you are not
      likely to be able to realize on any judgment rendered against it.</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>Risks Related to
      our
      Businesses</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>General</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">In
      addition to the following risk factors specific to each of our businesses,
      all
      of our businesses are subject to the effects of the following:</div>
    <div style="MARGIN-TOP: 5pt; PADDING-LEFT: 36pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: -10pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"><font style="FONT-FAMILY: Symbol">&#183;</font></div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt"><font style="FONT-FAMILY: Times New Roman">the
      continued threat of
      terrorism;</font></div>
    <div style="MARGIN-TOP: 5pt; PADDING-LEFT: 36pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: -10pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"><font style="FONT-FAMILY: Symbol">&#183;</font></div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt"><font style="FONT-FAMILY: Times New Roman">economic
      downturn;</font></div>
    <div style="MARGIN-TOP: 5pt; PADDING-LEFT: 36pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: -10pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"><font style="FONT-FAMILY: Symbol">&#183;</font></div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt"><font style="FONT-FAMILY: Times New Roman">loss
      of any of our or our subsidiaries&#8217; key
      personnel;</font></div>
    <div style="MARGIN-TOP: 5pt; PADDING-LEFT: 36pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: -10pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"><font style="FONT-FAMILY: Symbol">&#183;</font></div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt"><font style="FONT-FAMILY: Times New Roman">the
      unavailability, as needed, of
      additional financing; and</font></div>
    <div style="MARGIN-TOP: 5pt; PADDING-LEFT: 36pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: -10pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"><font style="FONT-FAMILY: Symbol">&#183;</font></div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt"><font style="FONT-FAMILY: Times New Roman">the
      unavailability of insurance at
      acceptable rates.</font></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>Our acquisition
      of
      Lear will require a significant investment or may not be successfully
      completed.</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">On
      February 9, 2007, we entered into an agreement and plan of merger, pursuant
      to
      which we would acquire Lear, a publicly traded company that provides automotive
      interior systems worldwide for aggregate consideration of </div>
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    <div style="MARGIN: 0pt" align="center">9</div>
    <div style="MARGIN: 0pt"><br></div>
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  approximately $5.2 billion, including the assumption by the surviving entity
  of certain outstanding indebtedness of Lear and the refinancing of Lear&#8217;s
  existing term loan and credit facility. The consummation of the transaction
  is subject to regulatory approvals and shareholder vote. If we complete the
  acquisition of Lear, it would require a significant investment by us, including
  approximately $1.3 billion in cash. Under the financial tests contained in the
  indentures that govern our notes due 2012 and 2013, AREP and AREH will not be
  able to incur additional indebtedness as a result of borrowings to finance the
  Lear acquisition, which may limit our flexibility in entering into future financing
  arrangements, including those to support our existing businesses or to acquire
  new businesses. Lear also has significant pension and related liabilities for
  which we could become liable as a member of a controlled group of entities.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Our
      agreement with Lear permitted Lear to solicit proposals from other potential
      purchasers for 45 days after the signing of the agreement and to respond to
      offers after that date and until Lear&#8217;s stockholders approve the transaction
      with us. No competing proposals were received as of the date of this prospectus.
      We cannot assure you that we will be able to complete the transaction or that
      the completion of the transaction will be for the consideration described
      above.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Furthermore,
      the proposed transaction is subject to additional risks and uncertainties,
      including, but not limited to, the satisfaction of conditions to closing, which
      requires Lear stockholder approval and U.S. and foreign antitrust approval.
      If
      we were to complete the acquisition, Lear&#8217;s business and operations would be
      subject to various risks, including the uncertainty of its financial performance
      following completion of the proposed transaction; general conditions affecting
      the automotive industry, particularly in the United States; and general domestic
      and international market conditions.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">In addition,
we have been named as defendants in various lawsuits challenging the transaction. Specifically, a
consolidated action is pending in the Court of Chancery of the State of Delaware which alleges, among other things, that
the purchase price is unfair to Lear stockholders. A preliminary injunction was issued requiring supplemental disclosure.
The supplemental disclosure requirement has been satisfied and, consequently, the injunction has been dissolved. A
consolidated action filed in Michigan state court making virtually identical allegations was dismissed by the court
because of the prior-filed Delaware action. Plaintiffs in the Michigan state action have filed a motion for
reconsideration which is pending. Finally, a complaint is pending in the United States District Court for the Eastern
District of Michigan, which alleges that the transaction would violate certain provisions of the Employment Retirement
Income Security Act (referred to as the Federal Action). Motions to dismiss the Federal Action have been fully briefed
and await disposition, as does plaintiff&#8217;s application for preliminary injunction. Based upon the above there is a risk
that the transaction may be enjoined, or, if the transaction is completed, liability may nevertheless be imposed
thereafter.</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>Gaming</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>Our sale of ACEP
      may not be successfully completed.</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">On April
      22, 2007, AEP entered into a Membership Interest Purchase Agreement with
      Whitehall Street Real Estate Funds to sell all of the issued and outstanding
      membership interests of ACEP, which comprises our gaming operations. The
      transaction is subject to the approval of the Nevada Gaming Commission and
      the
      Nevada State Gaming Control Board, as well as customary conditions. The parties
      expect to close the transaction in approximately December&#160;2007; however, we
      cannot assure you that we will be able to consummate the transaction.</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>The gaming industry
      is highly regulated. The gaming authorities and state and municipal licensing
      authorities have significant control over our operations.</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Our
      properties currently conduct licensed gaming operations in Nevada. Various
      regulatory authorities, including the Nevada State Gaming Control Board and
      the
      Nevada Gaining Commission, require our properties to hold various licenses
      and
      registrations, findings of suitability, permits and approvals to engage in
      gaming operations and to meet requirements of suitability. These gaming
      authorities also control approval of ownership interests in gaming operations.
      These gaming authorities may deny, limit, condition, suspend or revoke our
      gaming licenses, registrations, findings of suitability or the approval of
      any
      of our ownership interests in any of our licensed gaming operations, any of
      which could have a significant adverse effect on our business, financial
      condition and results of operations, for any cause they may deem reasonable.
      If
      we violate gaming laws or regulations that are applicable to us, we may have
      to
      pay substantial fines or forfeit assets. If, in the future, we operate or have
      an ownership interest </div>
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    <div style="MARGIN: 0pt" align="center">10</div>
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  in casino gaming facilities located outside of Nevada, we would also be subject
  to the gaming laws and regulations of those other jurisdictions.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The sale
      of alcoholic beverages at our gaming properties is subject to licensing and
      regulation by local authorities. Any limitation, condition, suspension or
      revocation of, or disciplinary action with respect to, any such license would
      reduce the number of visitors to our casinos to the extent the availability
      of
      alcoholic beverages is important to them. Any reduction in our number of
      visitors will reduce our revenue and cash flow.</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>Rising operating
      costs for our gaming properties could have a negative impact on our
      profitability.</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      operating expenses associated with our gaming properties could increase due
      to
      some of the following factors:</div>
    <div style="MARGIN-TOP: 5pt; PADDING-LEFT: 36pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: -10pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"><font style="FONT-FAMILY: Symbol">&#183;</font></div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt"><font style="FONT-FAMILY: Times New Roman">our
      properties use significant amounts of
      electricity, natural gas and other forms of energy, and energy price increases
      may reduce our profitability;</font></div>
    <div style="MARGIN-TOP: 5pt; PADDING-LEFT: 36pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: -10pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"><font style="FONT-FAMILY: Symbol">&#183;</font></div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt"><font style="FONT-FAMILY: Times New Roman">our
      properties use significant amounts of
      water and a water shortage may adversely affect our operations;</font></div>
    <div style="MARGIN-TOP: 5pt; PADDING-LEFT: 36pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: -10pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"><font style="FONT-FAMILY: Symbol">&#183;</font></div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt"><font style="FONT-FAMILY: Times New Roman">some
      of our employees are covered by
      collective bargaining agreements and we may incur higher costs or work
      slow-downs or stoppages due to union activities; and</font></div>
    <div style="MARGIN-TOP: 5pt; PADDING-LEFT: 36pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: -10pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"><font style="FONT-FAMILY: Symbol">&#183;</font></div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt"><font style="FONT-FAMILY: Times New Roman">our
      reliance on slot machine revenues and
      the concentration of manufacturing of slot machines in certain companies could
      impose additional costs on us.</font></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>We face substantial
      competition in the gaming industry.</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      gaming industry in general, and the markets in which we compete in particular,
      are highly competitive:</div>
    <div style="MARGIN-TOP: 5pt; PADDING-LEFT: 36pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: -10pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"><font style="FONT-FAMILY: Symbol">&#183;</font></div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt"><font style="FONT-FAMILY: Times New Roman">we
      compete with many world-class
      destination resorts with greater name recognition and different attractions,
      amenities and entertainment options;</font></div>
    <div style="MARGIN-TOP: 5pt; PADDING-LEFT: 36pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: -10pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"><font style="FONT-FAMILY: Symbol">&#183;</font></div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt"><font style="FONT-FAMILY: Times New Roman">we
      compete with the continued growth of
      gaming on Native American tribal lands;</font></div>
    <div style="MARGIN-TOP: 5pt; PADDING-LEFT: 36pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: -10pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"><font style="FONT-FAMILY: Symbol">&#183;</font></div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt"><font style="FONT-FAMILY: Times New Roman">the
      existence of legalized gambling in
      other jurisdictions may reduce the number of visitors to our
      properties;</font></div>
    <div style="MARGIN-TOP: 5pt; PADDING-LEFT: 36pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: -10pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"><font style="FONT-FAMILY: Symbol">&#183;</font></div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt"><font style="FONT-FAMILY: Times New Roman">certain
      states have legalized, and others
      may legalize, casino gaming in specific venues, including race tracks and/or
      in
      specific areas, including metropolitan areas from which we traditionally attract
      customers; and</font></div>
    <div style="MARGIN-TOP: 5pt; PADDING-LEFT: 36pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: -10pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"><font style="FONT-FAMILY: Symbol">&#183;</font></div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt"><font style="FONT-FAMILY: Times New Roman">our
      properties also compete, and will in
      the future compete, with all forms of legalized gambling.</font></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Many
      of
      our competitors have greater financial, selling and marketing, technical and
      other resources than we do. We may not be able to compete effectively with
      our
      competitors and we may lose market share, which could reduce our revenue and
      cash flow.</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>We cannot guarantee
      that we will be able to recover our investment made in connection with the
      acquisition of the Aquarius.</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">On May
      19, 2006, our wholly owned subsidiary, AREP Laughlin Corporation, acquired
      the
      Aquarius Casino Resort, or the Aquarius, from affiliates of Harrah&#8217;s Operating
      Company, Inc., or Harrah&#8217;s, for approximately $113.6 million, including working
      capital. Acquisitions generally involve significant risks, including
      difficulties in the assimilation of the operations, services and corporate
      culture of the acquired company.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Pursuant
      to the Membership Interest Purchase Agreement that AEP has entered into with
      Whitehall Street Real Estate Funds to sell the issued and outstanding membership
      interests of ACEP, we have agreed to make capital expenditures, including $10.5
      million through 2007 to refurbish rooms, upgrade amenities and acquire new
      gaming equipment for the Aquarius.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">There
      can
      be no assurance that this acquisition will be profitable or that we will be
      able
      to recover our investments either upon the sale of ACEP or, if the sale is
      not
      consummated, in our future gaming operations.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">11</div>
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  <strong>Real Estate Operations</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>Our investment
      in
      property development may be more costly than anticipated.</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">We have
      invested and expect to continue to invest in unentitled land, undeveloped land
      and distressed development properties. These properties involve more risk than
      properties on which development has been completed. Unentitled land may not
      be
      approved for development. These investments do not generate any operating
      revenue, while costs are incurred to obtain government approvals and develop
      the
      properties. Construction may not be completed within budget or as scheduled
      and
      projected rental levels or sales prices may not be achieved and other
      unpredictable contingencies beyond our control could occur. We will not be
      able
      to recoup any of such costs until such time as these properties, or parcels
      thereof, are either disposed of or developed into income producing assets.</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>We may be subject
      to environmental liability as an owner or operator of development and rental
      real estate.</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Under
      various federal, state and local laws, ordinances and regulations, an owner
      or
      operator of real property may become liable for the costs of removal or
      remediation of certain hazardous substances, pollutants and contaminants
      released on, under, in or from its property. These laws often impose liability
      without regard to whether the owner or operator knew of, or was responsible
      for,
      the release of such substances. To the extent any such substances are found
      in
      or on any property invested in by us, we could be exposed to liability and
      be
      required to incur substantial remediation costs. The presence of such substances
      or the failure to undertake proper remediation may adversely affect the ability
      to finance, refinance or dispose of such property. We generally conduct a Phase
      I environmental site assessment on properties in which we are considering
      investing. A Phase I environmental site assessment involves record review,
      visual site assessment and personnel interviews, but does not typically include
      invasive testing procedures such as air, soil or groundwater sampling or other
      tests performed as part of a Phase II environmental site assessment.
      Accordingly, there can be no assurance that these assessments will disclose
      all
      potential liabilities or that future property uses or conditions or changes
      in
      applicable environmental laws and regulations or activities at nearby properties
      will not result in the creation of environmental liabilities with respect to
      a
      property.</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>Home Fashion
      Operations</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>&#160;Pending legal
      proceedings may result in our ownership of WPI&#8217;s common stock being reduced to
      less than 50%. A legal action in Delaware challenges the issuance to of the
      preferred stock of WPI. Uncertainties arising from these proceedings may
      adversely affect WPI&#8217;s operations and prospects and the value of our investment
      in it.</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">We
      currently own approximately 67.7% of the outstanding shares of common stock
      and
      100% of the preferred stock of WPI. As a result of the decision of the U.S.
      District Court for the Southern District of New York reversing certain
      provisions of the Bankruptcy Court order pursuant to which we acquired our
      ownership of a majority of the common stock of WPI, the proceedings in the
      Bankruptcy Court on remand and the proceedings in the Delaware action, our
      percentage of the outstanding shares of common stock of WPI could be reduced
      to
      less than 50% and perhaps substantially less and our ownership of the preferred
      stock of WPI could also be affected. The Bankruptcy Court entered a stay of
      its
      order on remand. On May 9, 2007, the District Court issued an order conditioning
      the continuation of the Bankruptcy Court&#8217;s stay on the posting of a bond. No
      bond was posted. On May 22, 2007, WPI, its subsidiary WestPoint Home, Inc.,
      and
      we filed a Petition for a Writ of Mandamus in the U.S. Court of Appeals for
      the
      Second Circuit requesting, among other relief, the reinstatement of the Sale
      Order. The Second Circuit scheduled oral argument on the Petition for Mandamus
      for June 26, 2007 and reinstated the stay pending its decision. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">If we
      were to lose control of WPI, it could adversely affect the business and
      prospects of WPI and the value of our investment in it. In addition, we
      consolidated the balance sheet of WPI as of March 31, 2007 and WPI&#8217;s results of
      operations for the period from the date of acquisition through March 31, 2007.
      If we were to own less than 50% of the outstanding common stock or the challenge
      to our preferred stock ownership is successful, we would have to evaluate
      whether we should consolidate WPI and if so our financial statements could
      be
      materially different than as presented as of March 31, 2007, December 31, 2006
      and December 31, 2005 and for the periods then ended.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">12</div>
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  <strong><i>WPI acquired its business from the former owners through bankruptcy
  proceedings. We cannot assure you that it will be able to operate profitably.</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">WPI
      acquired the assets of WestPoint Stevens Inc., or WestPoint Stevens, as part
      of
      its bankruptcy proceedings. Certain of the issues that contributed to WestPoint
      Stevens&#8217; filing for bankruptcy, such as intense industry competition, the
      inability to produce goods at a cost competitive with overseas suppliers, the
      increasing prevalence of direct sourcing by principal customers and continued
      incurrence of overhead costs associated with an enterprise larger than the
      current business can profitably support, continue to exist and may continue
      to
      affect WPI&#8217;s business operations and financial condition adversely. In addition,
      during the protracted bankruptcy proceedings of WestPoint Stevens, several
      of
      its customers reduced the volume of business done with WestPoint Stevens. We
      have installed new management to address these issues, but we cannot assure
      you
      that new management will be effective.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">WPI
      operated at a loss during fiscal year 2006 as well as for the three months
      ended
      March 31, 2007, and we expect that WPI will continue to operate at a loss during
      fiscal year 2007. We cannot assure you that it will be able to operate
      profitably in the future.</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>The loss of any
      of
      WPI&#8217;s large customers could have an adverse effect on WPI&#8217;s
      business.</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">During
      fiscal year 2006 and the three-month period ended March 31, 2007, WPI&#8217;s six
      largest customers accounted for approximately 50% and 52%, respectively, of
      its
      net sales. Other retailers have indicated that they intend to significantly
      increase their direct sourcing of home fashion products from foreign sources.
      The loss of any of WPI&#8217;s largest accounts, or a material portion of sales to
      those accounts, would have an adverse effect upon its business, which could
      be
      material.</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>A portion of
      WPI&#8217;s
      sales are derived from licensed designer brands. The loss of a significant
      license could have an adverse effect on WPI&#8217;s business.</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">A portion
      of WPI&#8217;s sales is derived from licensed designer brands. The license agreements
      for WPI&#8217;s designer brands generally are for a term of two or three years. Some
      of the licenses are automatically renewable for additional periods, provided
      that sales thresholds set forth in the license agreements are met. The loss
      of a
      significant license could have an adverse effect upon WPI&#8217;s business, which
      effect could be material. Under certain circumstances, these licenses can be
      terminated without WPI&#8217;s consent due to circumstances beyond WPI&#8217;s
      control.</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>A shortage of
      the
      principal raw materials WPI uses to manufacture its products could force WPI
      to
      pay more for those materials and, possibly, cause WPI to increase its prices,
      which could have an adverse effect on WPI&#8217;s operations.</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Any
      shortage in the raw materials WPI uses to manufacture its products could
      adversely affect its operations. The principal raw materials that WPI uses
      in
      the manufacture of its products are cotton of various grades and staple lengths
      and polyester and nylon in staple and filament form. Since cotton is an
      agricultural product, its supply and quality are subject to weather patterns,
      disease and other factors. The price of cotton is also influenced by supply
      and
      demand considerations, both domestically and worldwide, and by the cost of
      polyester. Although WPI has been able to acquire sufficient quantities of cotton
      for its operations in the past, any shortage in the cotton supply by reason
      of
      weather patterns, disease or other factors, or a significant increase in the
      price of cotton, could adversely affect its operations. The price of man-made
      fibers, such as polyester and nylon, is influenced by demand, manufacturing
      capacity and costs, petroleum prices, cotton prices and the cost of polymers
      used in producing these fibers. In particular, the effect of increased energy
      prices may have a direct impact upon the cost of dye and chemicals, polyester
      and other synthetic fibers. Any significant prolonged petrochemical shortages
      could significantly affect the availability of man-made fibers and could cause
      a
      substantial increase in demand for cotton. This could result in decreased
      availability of cotton and possibly increased prices and could adversely affect
      WPI&#8217;s operations.</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>The home fashion
      industry is highly competitive and WPI&#8217;s success depends on WPI&#8217;s ability to
      compete effectively in the market.</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The home
      fashion industry is highly competitive. WPI&#8217;s future success will, to a large
      extent, depend on its ability to remain a low-cost producer and to remain
      competitive. WPI competes with both foreign and domestic companies on, among
      other factors, the basis of price, quality and customer service. In the home
      fashion market, WPI competes with many companies. WPI&#8217;s future success depends
      on its ability to remain competitive in the areas </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">13</div>
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  <p></p>
  of marketing, product development, price, quality, brand names, manufacturing
  capabilities, distribution and order processing. We cannot assure you of WPI&#8217;s
  ability to compete effectively in any of these areas. Any failure to compete
  effectively could adversely affect WPI&#8217;s sales and, accordingly, its operations.
  Additionally, the easing of trade restrictions over time has led to growing
  competition from low priced products imported from Asia and Latin America. The
  lifting of import quotas in 2005 has accelerated the loss of WPI&#8217;s market
  share. There can be no assurance that the foreign competition will not grow
  to a level that could have an adverse effect upon WPI&#8217;s ability to compete
  effectively.</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>WPI intends to
      increase the percentage of its products that are made overseas. There is no
      assurance that WPI will be successful in obtaining goods of sufficient quality
      on a timely basis and on advantageous terms. WPI will be subject to additional
      risks relating to doing business overseas.</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">WPI
      intends to increase the percentage of its products that are made overseas and
      may face additional risks associated with these efforts. Adverse factors that
      WPI may encounter include:</div>
    <div style="MARGIN-TOP: 3.35pt; PADDING-LEFT: 36pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: -10pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"><font style="FONT-FAMILY: Symbol">&#183;</font></div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt"><font style="FONT-FAMILY: Times New Roman">logistical
      challenges caused by
      distance;</font></div>
    <div style="MARGIN-TOP: 3.35pt; PADDING-LEFT: 36pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: -10pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"><font style="FONT-FAMILY: Symbol">&#183;</font></div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt"><font style="FONT-FAMILY: Times New Roman">language
      and cultural
      differences;</font></div>
    <div style="MARGIN-TOP: 3.35pt; PADDING-LEFT: 36pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: -10pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"><font style="FONT-FAMILY: Symbol">&#183;</font></div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt"><font style="FONT-FAMILY: Times New Roman">legal
      and regulatory
      restrictions;</font></div>
    <div style="MARGIN-TOP: 3.35pt; PADDING-LEFT: 36pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: -10pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"><font style="FONT-FAMILY: Symbol">&#183;</font></div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt"><font style="FONT-FAMILY: Times New Roman">the
      difficulty of enforcing agreements with
      overseas suppliers;</font></div>
    <div style="MARGIN-TOP: 3.35pt; PADDING-LEFT: 36pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: -10pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"><font style="FONT-FAMILY: Symbol">&#183;</font></div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt"><font style="FONT-FAMILY: Times New Roman">currency
      exchange rate
      fluctuations;</font></div>
    <div style="MARGIN-TOP: 3.35pt; PADDING-LEFT: 36pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: -10pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"><font style="FONT-FAMILY: Symbol">&#183;</font></div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt"><font style="FONT-FAMILY: Times New Roman">political
      and economic instability;
      and</font></div>
    <div style="MARGIN-TOP: 3.35pt; PADDING-LEFT: 36pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: -10pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"><font style="FONT-FAMILY: Symbol">&#183;</font></div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt"><font style="FONT-FAMILY: Times New Roman">potential
      adverse tax
      consequences.</font></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>There has been
      consolidation of retailers of WPI&#8217;s products that may reduce its
      profitability.</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Retailers
      of consumer goods have become fewer and more powerful over time. As buying
      power
      has become more concentrated, pricing pressure on vendors has grown. With the
      ability to buy imported products directly from foreign sources, retailers&#8217;
pricing leverage has increased and also allowed for growth in private label
      brands that displace and compete with WPI proprietary brands. Retailers&#8217; pricing
      leverage has resulted in a decline in WPI&#8217;s unit pricing and margins and
      resulted in a shift in product mix to more private label programs. If WPI is
      unable to diminish the decline in its pricing and margins, it may not be able
      to
      achieve or maintain profitability.</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>WPI is subject
      to
      various federal, state and local environmental and health and safety laws and
      regulations. If it does not comply with these regulations, it may incur
      significant costs in the future to become compliant.</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">WPI is
      subject to various federal, state and local laws and regulations governing,
      among other things, the discharge, storage, handling, usage and disposal of
      a
      variety of hazardous and non-hazardous substances and wastes used in, or
      resulting from, its operations, including potential remediation obligations
      under those laws and regulations. WPI&#8217;s operations are also governed by federal,
      state and local laws and regulations relating to employee safety and health
      which, among other things, establish exposure limitations for cotton dust,
      formaldehyde, asbestos and noise, and which regulate chemical, physical and
      ergonomic hazards in the workplace. Consumer product safety laws, regulations
      and standards at the federal and state level govern the manufacture and sale
      of
      products by WPI. Although WPI does not expect that compliance with any of these
      laws and regulations will adversely affect its operations, we cannot assure
      you
      that regulatory requirements will not become more stringent in the future or
      that WPI will not incur significant costs to comply with those
      requirements.</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>Investments</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>We may not be
      able
      to identify suitable investments, and our investments may not result in
      favorable returns or may result in losses.</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Our
      partnership agreement allows us to take advantage of investment opportunities
      we
      believe exist outside of our operating businesses. The equity securities in
      which we may invest may include common stock, preferred stock and securities
      convertible into common stock, as well as warrants to purchase these securities.
      The debt securities in which we may invest may include bonds, debentures, notes
      or non-rated mortgage-related securities, municipal obligations, bank debt
      and
      mezzanine loans. Certain of these securities may include lower-rated or
      non-rated </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">14</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; PAGE-BREAK-BEFORE: always">
  <p><strong><a href="#toc">Back to Table of Contents</a></strong></p>
  <p></p>
  securities which may provide the potential for higher yields and therefore may
  entail higher risk and may include the securities of bankrupt or distressed
  companies. In addition, we may engage in various investment techniques, including
  derivatives, options and futures transactions, foreign currency transactions,
  &#8220;short&#8221; sales and leveraging for either hedging or other purposes.
  We may concentrate our activities by owning significant or controlling interest
  in certain investments. We may not be successful in finding suitable opportunities
  to invest our cash and our strategy of investing in undervalued assets may expose
  us to numerous risks.</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>Our investments
      may
      be subject to significant uncertainties.</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Our
      investments may not be successful for many reasons, including, but not limited
      to:</div>
    <div style="MARGIN-TOP: 5pt; PADDING-LEFT: 36pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: -10pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"><font style="FONT-FAMILY: Symbol">&#183;</font></div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt"><font style="FONT-FAMILY: Times New Roman">fluctuation
      of interest rates;</font></div>
    <div style="MARGIN-TOP: 5pt; PADDING-LEFT: 36pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: -10pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"><font style="FONT-FAMILY: Symbol">&#183;</font></div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt"><font style="FONT-FAMILY: Times New Roman">lack
      of control in minority
      investments;</font></div>
    <div style="MARGIN-TOP: 5pt; PADDING-LEFT: 36pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: -10pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"><font style="FONT-FAMILY: Symbol">&#183;</font></div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt"><font style="FONT-FAMILY: Times New Roman">worsening
      of general economic and market
      conditions;</font></div>
    <div style="MARGIN-TOP: 5pt; PADDING-LEFT: 36pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: -10pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"><font style="FONT-FAMILY: Symbol">&#183;</font></div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt"><font style="FONT-FAMILY: Times New Roman">lack
      of diversification;</font></div>
    <div style="MARGIN-TOP: 5pt; PADDING-LEFT: 36pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: -10pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"><font style="FONT-FAMILY: Symbol">&#183;</font></div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt"><font style="FONT-FAMILY: Times New Roman">fluctuation
      of U.S. dollar exchange rates;
      and</font></div>
    <div style="MARGIN-TOP: 5pt; PADDING-LEFT: 36pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: -10pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"><font style="FONT-FAMILY: Symbol">&#183;</font></div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt"><font style="FONT-FAMILY: Times New Roman">adverse
      legal and regulatory developments
      that may affect particular businesses.</font></div>
    <div style="MARGIN: 0pt" align="center"><br><br></div>
    <div style="MARGIN: 0pt" align="center">15</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">

<div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt" align="center">
  <p align="left"><strong><a href="#toc">Back to Table of Contents</a></strong></p>
  <p></p>
  <strong><a name="4"></a>AMERICAN REAL ESTATE PARTNERS, L.P. AND SUBSIDIARIES<br>
  UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      following unaudited pro forma condensed combined financial statements that
      follow are presented to give effect to:</div>
    <div style="MARGIN-TOP: 5pt; PADDING-LEFT: 36pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: -10pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"><font style="FONT-FAMILY: Symbol">&#183;</font></div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt"><font style="FONT-FAMILY: Times New Roman">the
      pending acquisition of Lear for an
      aggregate cash purchase price of approximately $2.9 billion, funded in part
      by
      approximately $1.3 billion from our cash and cash equivalents and
      investments;</font></div>
    <div style="MARGIN-TOP: 5pt; PADDING-LEFT: 36pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: -10pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"><font style="FONT-FAMILY: Symbol">&#183;</font></div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt"><font style="FONT-FAMILY: Times New Roman">the
      issuance of $2.6&#160;billion of notes
      to be issued to finance a portion of the Lear acquisition and finance and
      replace a portion of Lear&#8217;s existing credit facilities; and</font></div>
    <div style="MARGIN-TOP: 5pt; PADDING-LEFT: 36pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: -10pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"><font style="FONT-FAMILY: Symbol">&#183;</font></div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt"><font style="FONT-FAMILY: Times New Roman">the
      pending sale of American Casino &amp;
Entertainment Properties LLC, or ACEP, our indirect wholly owned
      subsidiary.</font></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      unaudited pro forma condensed combined financial statements are based on the
      historical financial statements of AREP, ACEP and Lear, as well as the
      assumptions and adjustments described below and in the accompanying notes to
      the
      unaudited pro forma condensed combined financial statements.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      unaudited pro forma condensed combined balance sheet as of March&#160;31, 2007
      is presented as if the pending acquisition of Lear and the notes to be issued
      to
      finance the Lear acquisition occurred on March&#160;31, 2007. The unaudited pro
      forma condensed combined statements of operations for the three months ended
      March&#160;31, 2007 and the fiscal year ended December&#160;31, 2006 has been
      prepared to give effect to the unaudited pro forma adjustments necessary as
      if
      the pending acquisition of Lear and the notes to be issued to finance the Lear
      acquisition had taken place on January&#160;1, 2006.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">As
      described in Note 3 to the pro forma condensed combined financial statements,
      on
      October 16, 2006 and March 31, 2007, Lear completed the divestiture of
      substantially all of its European and North American interior businesses,
      respectively. Accordingly, the unaudited pro forma condensed combined statement
      of operations for the three months ended March&#160;31, 2007 gives effect to the
      IAC North America Transaction (as defined below) as if it had occurred as of
      January&#160;1, 2007. The unaudited pro forma condensed combined statement of
      operations for the year ended December 31, 2006 gives effect to the IAC Europe
      Transaction (as defined below) and North America Transaction as if they had
      occurred as of January 1, 2006.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      unaudited pro forma condensed combined balance sheet as of March&#160;31, 2007
      is presented as if the pending sale of ACEP occurred on March&#160;31, 2007. The
      unaudited pro forma condensed combined statements of operations for the three
      months ended March&#160;31, 2007 and the years ended December&#160;31, 2006,
      2005 and 2004 has been prepared to give effect to the unaudited pro forma
      adjustments necessary as if the pending sale of ACEP had taken place on
      January&#160;1, 2004. In accordance with SEC guidelines, such historical pro
      forma statements of operations are presented for discontinued operations that
      are not yet required to be reflected in historical statements.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      preliminary allocation of the purchase price of Lear used in the unaudited
      pro
      forma condensed combined financial statements is based upon preliminary
      estimates. The estimates and assumptions, some of which cannot be made prior
      to
      completion of the Lear acquisition, are subject to change upon the acquisition
      date and finalization of the valuation of Lear&#8217;s assets and liabilities. Upon
      completion of the acquisition, AREP expects to make additional adjustments,
      and
      these valuations could change significantly from those used in the pro forma
      condensed combined financial data presented below. The final determination
      of
      the allocation of the purchase price will be based on the actual tangible and
      intangible assets of Lear that exist as of the acquisition date.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      unaudited pro forma condensed combined results do not purport to be indicative
      of the financial position and results of operations that we will obtain in
      the
      future, or that we would have obtained if the pending sale of ACEP and
      acquisition of Lear were effective as of the dates indicated above. The pro
      forma adjustments are based upon currently available information and upon
      certain assumptions that we believe are reasonable. The unaudited pro forma
      condensed combined financial statements should be read in conjunction with
      the
      historical consolidated financial statements of AREP and Lear included in their
      respective annual reports on Form 10-K and quarterly reports on Form 10-Q,
      and
      related amendments.</div>
    <div style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 6.65pt" align="center"><br><br></div>
    <div style="MARGIN: 0pt" align="center">16</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 6.65pt; PAGE-BREAK-BEFORE: always" align="center">
  <p align="left"><strong><a href="#toc">Back to Table of Contents</a></strong></p>
  <p></p>
  <div align="center"><strong>AMERICAN REAL ESTATE PARTNERS, L.P. AND SUBSIDIARIES</strong></div>
</div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 6.65pt" align="center"><strong>UNAUDITED
      PRO FORMA CONDENSED COMBINED BALANCE
      SHEETS<br>(amounts in 000s)</strong></div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="119">
            </td>
            <td width="9">
            </td>
            <td width="4">
            </td>
            <td width="36">
            </td>
            <td width="9">
            </td>
            <td width="4">
            </td>
            <td width="42">
            </td>
            <td width="9">
            </td>
            <td width="4">
            </td>
            <td width="47">
            </td>
            <td width="12">
            </td>
            <td width="15">
            </td>
            <td width="9">
            </td>
            <td width="4">
            </td>
            <td width="42">
            </td>
            <td width="9">
            </td>
            <td width="15">
            </td>
            <td width="14">
            </td>
            <td width="9">
            </td>
            <td width="4">
            </td>
            <td width="47">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="159">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td colspan="19" valign="bottom" width="452" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>March
                31, 2007</strong></div>
            </td>
          </tr>
          <tr>
            <td rowspan="2" valign="bottom" width="159">&#160;</td>
            <td rowspan="2" valign="bottom" width="12">&#160;</td>
            <td colspan="5" valign="bottom" width="128" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Historical</strong></div>
            </td>
            <td rowspan="2" valign="bottom" width="12">&#160;</td>
            <td colspan="13" valign="bottom" width="311" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Pro
                Forma Adjustments</strong></div>
            </td>
          </tr>
          <tr>
            <td colspan="2" valign="bottom" width="54" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>AREP</strong></div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td colspan="2" valign="bottom" width="62" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>LEAR</strong></div>
            </td>
            <td colspan="2" valign="bottom" width="68" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Acquisition<br>of
                Lear</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="20">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td colspan="2" valign="bottom" width="62" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Sale
                of <br>ACEP</strong></div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="20">&#160;</td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td colspan="2" valign="bottom" width="68" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Pro
                Forma<br>Results</strong></div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="159">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="48">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="56">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="62">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="20">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="56">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="20">&#160;</td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="62">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="159">
              <div style="MARGIN-TOP: 1.5pt; PADDING-LEFT: 6pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 9.5pt" align="center"><strong>ASSETS</strong></div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="48">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="56">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="62">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="20">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="56">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="20">&#160;</td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="62">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="159">
              <div style="MARGIN-TOP: 1.5pt; PADDING-LEFT: 6pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 9.5pt">Current
                assets:</div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="48">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="56">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="62">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="20">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="56">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="20">&#160;</td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="62">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="159">
              <div style="MARGIN-TOP: 1.5pt; PADDING-LEFT: 18pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 9.5pt">Cash
                and cash equivalents</div>
            </td>
            <td valign="bottom" width="12">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt">&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">$</div>
            </td>
            <td valign="bottom" width="48">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">2,331,521</div>
            </td>
            <td valign="bottom" width="12">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt">&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">$</div>
            </td>
            <td valign="bottom" width="56">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">330,400</div>
            </td>
            <td valign="bottom" width="12">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt">&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">$</div>
            </td>
            <td valign="bottom" width="62">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">(1,456,491</div>
            </td>
            <td valign="bottom" width="16">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">)&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="20">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">(4a)</div>
            </td>
            <td valign="bottom" width="12">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt">&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">$</div>
            </td>
            <td valign="bottom" width="56">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">1,004,450</div>
            </td>
            <td valign="bottom" width="12">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt">&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="20">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">(5a)</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="12">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt">&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">$</div>
            </td>
            <td valign="bottom" width="62">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">2,209,880</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="159">
              <div style="MARGIN-TOP: 1.5pt; PADDING-LEFT: 18pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 9.5pt">Investments</div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="48">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">563,552</div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="56">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="62">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="20">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="56">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">(3,159</div>
            </td>
            <td valign="bottom" width="12">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">)</div>
            </td>
            <td valign="bottom" width="20">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">(5b)</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="62">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">560,393</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="159">
              <div style="MARGIN-TOP: 1.5pt; PADDING-LEFT: 18pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 9.5pt">Inventories,
                net</div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="48">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">235,358</div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="56">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">599,000</div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="62">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="20">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="56">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="20">&#160;</td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="62">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">834,358</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="159">
              <div style="MARGIN-TOP: 1.5pt; PADDING-LEFT: 18pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 9.5pt">Trade,
                notes and other receivables,<br>net</div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="48">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">169,841</div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="56">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">2,412,700</div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="62">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="20">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="56">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">(6,348</div>
            </td>
            <td valign="bottom" width="12">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">)</div>
            </td>
            <td valign="bottom" width="20">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">(5b)</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="62">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">2,576,193</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="159">
              <div style="MARGIN-TOP: 1.5pt; PADDING-LEFT: 18pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 9.5pt">Other
                current assets</div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="48">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">124,594</div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="56">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">355,900</div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="62">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="20">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="56">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">(18,535</div>
            </td>
            <td valign="bottom" width="12">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">)</div>
            </td>
            <td valign="bottom" width="20">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">(5b)</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="62">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">461,959</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="159">
              <div style="MARGIN-TOP: 1.5pt; PADDING-LEFT: 30pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Total
                current assets</div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6" style="border-top: #000000 0.5pt solid; border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="48" style="border-top: #000000 0.5pt solid; border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">3,424,866</div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6" style="border-top: #000000 0.5pt solid; border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="56" style="border-top: #000000 0.5pt solid; border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">3,698,000</div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6" style="border-top: #000000 0.5pt solid; border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="62" style="border-top: #000000 0.5pt solid; border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">(1,456,491</div>
            </td>
            <td valign="bottom" width="16">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">)</div>
            </td>
            <td valign="bottom" width="20">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6" style="border-top: #000000 0.5pt solid; border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="56" style="border-top: #000000 0.5pt solid; border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">976,408</div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="20">&#160;</td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6" style="border-top: #000000 0.5pt solid; border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="62" style="border-top: #000000 0.5pt solid; border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">&#160;6,642,783</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="159">
              <div style="MARGIN-TOP: 6pt; PADDING-LEFT: 18pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 11pt">Property,
                plant and equipment, net</div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="48">
              <div style="MARGIN-TOP: 6pt; PADDING-LEFT: 18pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 11pt" align="right">898,594</div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="56">
              <div style="MARGIN-TOP: 6pt; PADDING-LEFT: 18pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 11pt" align="right">1,425,900</div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="62">
              <div style="MARGIN-TOP: 6pt; PADDING-LEFT: 18pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 11pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="20">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="56">
              <div style="MARGIN-TOP: 6pt; PADDING-LEFT: 18pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 11pt" align="right">(417,978</div>
            </td>
            <td valign="bottom" width="12">
              <div style="MARGIN-TOP: 6pt; PADDING-LEFT: 18pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 11pt">)</div>
            </td>
            <td valign="bottom" width="20">
              <div style="MARGIN-TOP: 6pt; PADDING-LEFT: 18pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 11pt">(5b)</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="62">
              <div style="MARGIN-TOP: 6pt; PADDING-LEFT: 18pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 11pt" align="right">1,906,516</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="159">
              <div style="MARGIN-TOP: 1.5pt; PADDING-LEFT: 6pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 9.5pt">Investments</div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="48">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">201,943</div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="56">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">183,200</div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="62">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="20">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="56">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="20">&#160;</td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="62">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">385,143</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="159">
              <div style="MARGIN-TOP: 1.5pt; PADDING-LEFT: 6pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 9.5pt">Goodwill</div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="48">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="56">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">2,006,600</div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="62">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">2,182,900</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="20">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">(4b)</div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="56">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="20">&#160;</td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="62">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">4,189,500</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="159">
              <div style="MARGIN-TOP: 1.5pt; PADDING-LEFT: 6pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 9.5pt">Intangible
                assets</div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="48">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">25,772</div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="56">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">40,900</div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="62">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="20">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="56">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">(2,370</div>
            </td>
            <td valign="bottom" width="12">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">)</div>
            </td>
            <td valign="bottom" width="20">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">(5b)</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="62">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">64,302</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="159">
              <div style="MARGIN-TOP: 1.5pt; PADDING-LEFT: 6pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 9.5pt">Other
                non current assets</div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="48" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">71,492</div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="56" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">306,400</div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="62" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="20">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="56" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">(41,631</div>
            </td>
            <td valign="bottom" width="12">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">)</div>
            </td>
            <td valign="bottom" width="20">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">(5b)</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="62" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">336,261</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="159">
              <div style="MARGIN-TOP: 1.5pt; PADDING-LEFT: 30pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt"><strong>Total
                assets</strong></div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">$</div>
            </td>
            <td valign="bottom" width="48" style="border-bottom: #000000 3pt double;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">4,622,667</div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">$</div>
            </td>
            <td valign="bottom" width="56" style="border-bottom: #000000 3pt double;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">7,661,000</div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">$</div>
            </td>
            <td valign="bottom" width="62" style="border-bottom: #000000 3pt double;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">726,409</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="20">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">$</div>
            </td>
            <td valign="bottom" width="56" style="border-bottom: #000000 3pt double;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">514,429</div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="20">&#160;</td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">$</div>
            </td>
            <td valign="bottom" width="62" style="border-bottom: #000000 3pt double;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">13,524,505</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="159">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="48">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="56">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="62">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="20">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="56">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="20">&#160;</td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="62">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="159">
              <div style="MARGIN-TOP: 1.5pt; PADDING-LEFT: 6pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 9.5pt" align="center"><strong>LIABILITIES
                AND<br>PARTNERS&#8217; EQUITY</strong></div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="48">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="56">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="62">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="20">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="56">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="20">&#160;</td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="62">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="159">
              <div style="MARGIN-TOP: 1.5pt; PADDING-LEFT: 6pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 9.5pt">Current
                liabilities:</div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="48">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="56">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="62">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="20">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="56">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="20">&#160;</td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="62">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="159">
              <div style="MARGIN-TOP: 1.5pt; PADDING-LEFT: 18pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Accounts
                payable</div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">$</div>
            </td>
            <td valign="bottom" width="48">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">66,497</div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">$</div>
            </td>
            <td valign="bottom" width="56">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">2,480,300</div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">$</div>
            </td>
            <td valign="bottom" width="62">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="20">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">$</div>
            </td>
            <td valign="bottom" width="56">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">(6,749</div>
            </td>
            <td valign="bottom" width="12">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">)</div>
            </td>
            <td valign="bottom" width="20">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">(5b)</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">$</div>
            </td>
            <td valign="bottom" width="62">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">2,540,048</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="159">
              <div style="MARGIN-TOP: 1.5pt; PADDING-LEFT: 18pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -5.75pt; LINE-HEIGHT: 10pt">Accrued
                expenses and other current liabilities</div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="48">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">168,744</div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="56">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">1,181,000</div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="62">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="20">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="56">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">210,981</div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="20">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">(5b)</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="62">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">1,560,725</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="159">
              <div style="MARGIN-TOP: 1.5pt; PADDING-LEFT: 18pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -5.75pt; LINE-HEIGHT: 10pt">Current
                portion of long-term debt</div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="48">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">23,620</div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="56">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">26,400</div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="62">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="20">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="56">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">(502</div>
            </td>
            <td valign="bottom" width="12">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">)</div>
            </td>
            <td valign="bottom" width="20">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">(5b)</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="62">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">49,518</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="159">
              <div style="MARGIN-TOP: 1.5pt; PADDING-LEFT: 30pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Total
                current liabilities</div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6" style="border-top: #000000 0.5pt solid; border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="48" style="border-top: #000000 0.5pt solid; border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">258,861</div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6" style="border-top: #000000 0.5pt solid; border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="56" style="border-top: #000000 0.5pt solid; border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">3,687,700</div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6" style="border-top: #000000 0.5pt solid; border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="62" style="border-top: #000000 0.5pt solid; border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="20">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6" style="border-top: #000000 0.5pt solid; border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="56" style="border-top: #000000 0.5pt solid; border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">203,730</div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="20">&#160;</td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6" style="border-top: #000000 0.5pt solid; border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="62" style="border-top: #000000 0.5pt solid; border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">4,150,291</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="159">
              <div style="MARGIN-TOP: 6pt; PADDING-LEFT: 18pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 11pt">Long-term
                debt</div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="48">
              <div style="MARGIN-TOP: 6pt; PADDING-LEFT: 18pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 11pt" align="right">1,675,498</div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="56">
              <div style="MARGIN-TOP: 6pt; PADDING-LEFT: 18pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 11pt" align="right">2,431,800</div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="62">
              <div style="MARGIN-TOP: 6pt; PADDING-LEFT: 18pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 11pt" align="right">1,481,600</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="20">
              <div style="MARGIN-TOP: 6pt; PADDING-LEFT: 18pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 11pt">(4c)</div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="56">
              <div style="MARGIN-TOP: 6pt; PADDING-LEFT: 18pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 11pt" align="right">(257,202</div>
            </td>
            <td valign="bottom" width="12">
              <div style="MARGIN-TOP: 6pt; PADDING-LEFT: 18pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 11pt">)</div>
            </td>
            <td valign="bottom" width="20">
              <div style="MARGIN-TOP: 6pt; PADDING-LEFT: 18pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 11pt">(5b)
                </div>
            </td>
            <td valign="bottom" width="19">
              <div style="MARGIN-TOP: 6pt; PADDING-LEFT: 18pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 11pt">(5c)</div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="62">
              <div style="MARGIN-TOP: 6pt; PADDING-LEFT: 18pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 11pt" align="right">5,331,696</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="159">
              <div style="MARGIN-TOP: 1.5pt; PADDING-LEFT: 6pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 9.5pt">Other
                non-current liabilities</div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="48">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">23,738</div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="56">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">820,100</div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="62">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="20">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="56">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">(6,144</div>
            </td>
            <td valign="bottom" width="12">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">)</div>
            </td>
            <td valign="bottom" width="20">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">(5b)</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="62">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">837,694</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="159">
              <div style="MARGIN-TOP: 1.5pt; PADDING-LEFT: 6pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 9.5pt">Preferred
                limited partnership units</div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="48" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">119,073</div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="56" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="62" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="20">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="56" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="20">&#160;</td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="62" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">119,073</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="159">
              <div style="MARGIN-TOP: 1.5pt; PADDING-LEFT: 30pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 9.5pt">Total
                long-term liabilities</div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="48" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">1,818,309</div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="56" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">3,251,900</div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="62" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">1,481,600</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="20">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="56" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">(263,346</div>
            </td>
            <td valign="bottom" width="12">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">)</div>
            </td>
            <td valign="bottom" width="20">&#160;</td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="62" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">6,288,463</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="159">
              <div style="MARGIN-TOP: 1.5pt; PADDING-LEFT: 30pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 9.5pt"><strong>Total
                Liabilities</strong></div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="48" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">2,077,170</div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="56" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">6,939,600</div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="62" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">1,481,600</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="20">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="56" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">(59,616</div>
            </td>
            <td valign="bottom" width="12">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">)</div>
            </td>
            <td valign="bottom" width="20">&#160;</td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="62" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">10,438,754</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="159">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="48">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="56">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="62">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="20">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="56">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="20">&#160;</td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="62">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="159">
              <div style="MARGIN-TOP: 1.5pt; PADDING-LEFT: 6pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 9.5pt">Minority
                interests</div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="48">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">198,019</div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="56">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">28,900</div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="62">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="20">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="56">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="20">&#160;</td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="62">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">226,919</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="159">
              <div style="MARGIN-TOP: 1.5pt; PADDING-LEFT: 18pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 9.5pt"><strong>Partners&#8217;
                equity</strong></div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="48" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">2,347,478</div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="56" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">692,500</div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="62" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">(755,191</div>
            </td>
            <td valign="bottom" width="16">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">)</div>
            </td>
            <td valign="bottom" width="20">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">(4d)</div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="56" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">574,045</div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="20">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">(5d)</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="62" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">2,858,832</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="159">
              <div style="MARGIN-TOP: 1.5pt; PADDING-LEFT: 18pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 9.5pt"><strong>Total
                liabilities and partners&#8217;<br>equity</strong></div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">$</div>
            </td>
            <td valign="bottom" width="48" style="border-bottom: #000000 3pt double;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">4,622,667</div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">$</div>
            </td>
            <td valign="bottom" width="56" style="border-bottom: #000000 3pt double;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">7,661,000</div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">$</div>
            </td>
            <td valign="bottom" width="62" style="border-bottom: #000000 3pt double;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">&#160;726,409</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="20">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">$</div>
            </td>
            <td valign="bottom" width="56" style="border-bottom: #000000 3pt double;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">514,429</div>
            </td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="20">&#160;</td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">$</div>
            </td>
            <td valign="bottom" width="62" style="border-bottom: #000000 3pt double;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">13,524,505</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="MARGIN: 0pt" align="center"><br><br></div>
    <div style="MARGIN: 0pt" align="center">17</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt" align="center">
  <p align="left"><strong><a href="#toc">Back to Table of Contents</a></strong></p>
  <p></p>
  <strong>AMERICAN REAL ESTATE PARTNERS, L.P. AND SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 6.65pt" align="center"><strong>UNAUDITED
      PRO FORMA CONDENSED COMBINED STATEMENTS OF
      OPERATIONS<br>(amounts in 000s except per unit amounts)</strong></div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="168">
            </td>
            <td width="8">
            </td>
            <td width="4">
            </td>
            <td width="26">
            </td>
            <td width="8">
            </td>
            <td width="4">
            </td>
            <td width="37">
            </td>
            <td width="8">
            </td>
            <td width="5">
            </td>
            <td width="33">
            </td>
            <td width="8">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="36">
            </td>
            <td width="8">
            </td>
            <td width="14">
            </td>
            <td width="4">
            </td>
            <td width="28">
            </td>
            <td width="8">
            </td>
            <td width="4">
            </td>
            <td width="32">
            </td>
            <td width="2">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="224">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td colspan="19" valign="bottom" width="385" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Three
                Months Ended March 31, 2007</strong></div>
            </td>
            <td valign="bottom" width="3">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="224">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td colspan="5" valign="bottom" width="106">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Historical</strong></div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td colspan="13" valign="bottom" width="268" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Pro
                Forma Adjustments</strong></div>
            </td>
            <td valign="bottom" width="3">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="224">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td colspan="2" valign="bottom" width="40" style="border-top: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>AREP</strong></div>
            </td>
            <td valign="bottom" width="10" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td colspan="2" valign="bottom" width="55" style="border-top: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>LEAR</strong></div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td colspan="2" valign="bottom" width="52">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Acquisition<br>of
                Lear</strong></div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td colspan="2" valign="bottom" width="55">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Lear
                IAC<br>Transaction<br>(4f)</strong></div>
            </td>
            <td valign="bottom" width="11">&#160;</td>
            <td valign="top" width="18">&#160;</td>
            <td colspan="2" valign="bottom" width="43">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Sale
                of<br>ACEP (5e)</strong></div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td colspan="2" valign="bottom" width="48" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Pro
                Forma<br>Results</strong></div>
            </td>
            <td valign="bottom" width="3">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="224">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="34" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="50" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="7" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="48" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="11">&#160;</td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="5" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="38" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="42">&#160;</td>
            <td valign="bottom" width="3">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="224">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 6pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 8.65pt">Revenues:</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="34">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="50">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="44">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="48">&#160;</td>
            <td valign="bottom" width="11">&#160;</td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="38">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="42">&#160;</td>
            <td valign="bottom" width="3">&#160;</td>
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          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="224">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 8.65pt">Lear
                Automotive </div>
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            <td valign="bottom" width="10">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt">&#160;&#160;&#160;&#160;</div>
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            <td valign="bottom" width="5">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt">$</div>
            </td>
            <td valign="bottom" width="34">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
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            <td valign="bottom" width="10">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt">&#160;&#160;&#160;&#160;</div>
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            <td valign="bottom" width="5">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt">$</div>
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            <td valign="bottom" width="50">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">4,406,100</div>
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            <td valign="bottom" width="10">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt">&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt">$</div>
            </td>
            <td valign="bottom" width="44">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="10">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt">&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt">$</div>
            </td>
            <td valign="bottom" width="48">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">(580,500</div>
            </td>
            <td valign="bottom" width="11">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt">)&#160;&#160;&#160;</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="5">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt">$</div>
            </td>
            <td valign="bottom" width="38">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="10">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt">&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="5">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt">$</div>
            </td>
            <td valign="bottom" width="42">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">3,825,600</div>
            </td>
            <td valign="bottom" width="3">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="224">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 8.65pt">Gaming</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="34">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">112,888</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="50">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="44">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="48">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="11">&#160;</td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="38">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">(112,888</div>
            </td>
            <td valign="bottom" width="10">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt">)</div>
            </td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="42">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="3">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="224">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 8.65pt">Real
                Estate</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="34">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">27,887</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="50">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="44">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="48">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="11">&#160;</td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="38">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="42">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">27,887</div>
            </td>
            <td valign="bottom" width="3">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="224">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 8.65pt">Home
                Furnishings</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="34" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">210,604</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="48" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="11">&#160;</td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="38" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="42" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">210,604</div>
            </td>
            <td valign="bottom" width="3" style="border-bottom: white 0.5pt solid;">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="224">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="34" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">351,379</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">4,406,100</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="48" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">(580,500</div>
            </td>
            <td valign="bottom" width="11" style="border-bottom: #ccffcc 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt">)</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="38" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">(112,888</div>
            </td>
            <td valign="bottom" width="10">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt">)</div>
            </td>
            <td valign="bottom" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="42" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">4,064,091</div>
            </td>
            <td valign="bottom" width="3" style="border-bottom: #ccffcc 0.5pt solid;">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="224">
              <div style="MARGIN-TOP: 5.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt">Expenses:</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="34">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="50">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="44">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="48">&#160;</td>
            <td valign="bottom" width="11">&#160;</td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="38">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="42">&#160;</td>
            <td valign="bottom" width="3">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="224">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 8.65pt">Lear
                Automotive </div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="34">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="50">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">4,220,700</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="44">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="48">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">(579,600</div>
            </td>
            <td valign="bottom" width="11">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt">)</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="38">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="42">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">3,641,100</div>
            </td>
            <td valign="bottom" width="3">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="224">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 8.65pt">Loss
                on divestiture of Lear&#8217;s Interior business</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 8.65pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">25,600</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 8.65pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="48">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 0.5pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -0.5pt; LINE-HEIGHT: 8.65pt" align="right">(25,600</div>
            </td>
            <td valign="bottom" width="11">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="justify">)</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="38">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 8.65pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="42">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 8.65pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="3">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="224">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 8.65pt">Gaming</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="34">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">89,661</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="50">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="44">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="48">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="11">&#160;</td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="38">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">(89,661</div>
            </td>
            <td valign="bottom" width="10">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt">)</div>
            </td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="42">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="3">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="224">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 8.65pt">Real
                Estate</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="34">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">23,606</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="50">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="44">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="48">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="11">&#160;</td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="38">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="42">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">23,606</div>
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            <td valign="bottom" width="3">&#160;</td>
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          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="224">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 8.65pt">Home
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            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="34">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">249,619</div>
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            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="50">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
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            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="44">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
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            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="48">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
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            <td valign="bottom" width="11">&#160;</td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="38">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="42">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">249,619</div>
            </td>
            <td valign="bottom" width="3">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="224">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 8.65pt">Holding
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            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="34" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">7,679</div>
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            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="48" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="11">&#160;</td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="38" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="42" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">7,679</div>
            </td>
            <td valign="bottom" width="3" style="border-bottom: white 0.5pt solid;">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="224">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="34" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">370,565</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">4,246,300</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="48" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">(605,200</div>
            </td>
            <td valign="bottom" width="11" style="border-bottom: #ccffcc 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt">)</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="38" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">(89,661</div>
            </td>
            <td valign="bottom" width="10">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt">)</div>
            </td>
            <td valign="bottom" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="42" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">3,922,004</div>
            </td>
            <td valign="bottom" width="3" style="border-bottom: #ccffcc 0.5pt solid;">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="224">
              <div style="MARGIN-TOP: 2.65pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt">Operating
                income (loss)</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN-TOP: 2.65pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt" align="right">(19,186</div>
            </td>
            <td valign="bottom" width="10">
              <div style="MARGIN-TOP: 2.65pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt">)</div>
            </td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN-TOP: 2.65pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt" align="right">159,800</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN-TOP: 2.65pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="48">
              <div style="MARGIN-TOP: 2.65pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt" align="right">24,700</div>
            </td>
            <td valign="bottom" width="11">&#160;</td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="38">
              <div style="MARGIN-TOP: 2.65pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt" align="right">(23,227</div>
            </td>
            <td valign="bottom" width="10">
              <div style="MARGIN-TOP: 2.65pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt">)</div>
            </td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="42">
              <div style="MARGIN-TOP: 2.65pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt" align="right">142,087</div>
            </td>
            <td valign="bottom" width="3">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="224">
              <div style="MARGIN-TOP: 2.65pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt">Other
                income (expense), net:</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="34">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="50">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="44">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="48">&#160;</td>
            <td valign="bottom" width="11">&#160;</td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="38">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="42">&#160;</td>
            <td valign="bottom" width="3">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="224">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 8.65pt">Interest
                expense</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="34">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">(32,977</div>
            </td>
            <td valign="bottom" width="10">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt">)</div>
            </td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="50">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">(51,500</div>
            </td>
            <td valign="bottom" width="10">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt">)</div>
            </td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="44">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">(27,743</div>
            </td>
            <td valign="bottom" width="10">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt">)</div>
            </td>
            <td valign="bottom" width="17">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt">(4e)</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="48">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">200</div>
            </td>
            <td valign="bottom" width="11">&#160;</td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="38">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">5,436</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="42">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">(106,584</div>
            </td>
            <td valign="bottom" width="3">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="224">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 8.65pt">Interest
                and other income</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="34">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">31,458</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="50">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="44">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="48">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="11">&#160;</td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="38">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">(419</div>
            </td>
            <td valign="bottom" width="10">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt">)</div>
            </td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="42">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">31,039</div>
            </td>
            <td valign="bottom" width="3">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="224">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 8.65pt">Other
                income (expense), net</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="34">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">84,781</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="50">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">(17,200</div>
            </td>
            <td valign="bottom" width="10">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt">)</div>
            </td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="44">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="48">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">3,100</div>
            </td>
            <td valign="bottom" width="11">&#160;</td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="38">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="42">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">70,681</div>
            </td>
            <td valign="bottom" width="3">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="224">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 8.65pt">Equity
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            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="34" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 8.65pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">1,300</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 8.65pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="48" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 8.65pt" align="right">(400</div>
            </td>
            <td valign="bottom" width="11">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt">)</div>
            </td>
            <td valign="top" width="18">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 0.3pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.45pt; LINE-HEIGHT: 8.65pt">(4g)</div>
            </td>
            <td valign="bottom" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="38" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 8.65pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="42" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 8.65pt" align="right">900</div>
            </td>
            <td valign="bottom" width="3">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="224">
              <div style="MARGIN-TOP: 5.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt">Income
                (loss) from continuing operations before income taxes and minority
                interests</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN-TOP: 5.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt" align="right">64,076</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN-TOP: 5.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt" align="right">92,400</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN-TOP: 5.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt" align="right">(27,743</div>
            </td>
            <td valign="bottom" width="10">
              <div style="MARGIN-TOP: 5.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt">)</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="48">
              <div style="MARGIN-TOP: 5.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt" align="right">27,600</div>
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            <td valign="bottom" width="11">&#160;</td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="38">
              <div style="MARGIN-TOP: 5.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt" align="right">(18,210</div>
            </td>
            <td valign="bottom" width="10">
              <div style="MARGIN-TOP: 5.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt">)</div>
            </td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="42">
              <div style="MARGIN-TOP: 5.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt" align="right">138,123</div>
            </td>
            <td valign="bottom" width="3" style="border-top: #ffffff 0.5pt solid;">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="224">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 8.65pt">Income
                tax expense</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN-TOP: 5.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt" align="right">(6,949</div>
            </td>
            <td valign="bottom" width="10">
              <div style="MARGIN-TOP: 5.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt">)</div>
            </td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN-TOP: 5.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt" align="right">(32,400</div>
            </td>
            <td valign="bottom" width="10">
              <div style="MARGIN-TOP: 5.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt">)</div>
            </td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN-TOP: 5.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="48">
              <div style="MARGIN-TOP: 5.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt" align="right">1,600</div>
            </td>
            <td valign="bottom" width="11">&#160;</td>
            <td valign="top" width="18">
              <div style="MARGIN-TOP: 5.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt">(4h)</div>
            </td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="38">
              <div style="MARGIN-TOP: 5.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt" align="right">6,192</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="42">
              <div style="MARGIN-TOP: 5.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt" align="right">(31,557</div>
            </td>
            <td valign="bottom" width="3">
              <div style="MARGIN-TOP: 5.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="224">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 8.65pt">Minority
                interests</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="34" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">11,590</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">(10,100</div>
            </td>
            <td valign="bottom" width="10">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt">)</div>
            </td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="48" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">(300</div>
            </td>
            <td valign="bottom" width="11" style="border-bottom: white 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt">)</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="38" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="42" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">1,190</div>
            </td>
            <td valign="bottom" width="3" style="border-bottom: white 0.5pt solid;">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="224">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 6pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 8.65pt"><strong>Income
                (loss) from continuing operations</strong></div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="34">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">68,717</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="50">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">49,900</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="44">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">(27,743</div>
            </td>
            <td valign="bottom" width="10">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt">)</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="48">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">28,900</div>
            </td>
            <td valign="bottom" width="11">&#160;</td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="38">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">(12,018</div>
            </td>
            <td valign="bottom" width="10">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt">)</div>
            </td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="42">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">107,756</div>
            </td>
            <td valign="bottom" width="3">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="224">
              <div style="MARGIN-TOP: 5.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt"><strong>Income
                (loss) from discontinued operations</strong></div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="34" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 5.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt" align="right">27,861</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 5.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 5.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="48" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 5.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="11">&#160;</td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="38" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 5.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt" align="right">12,018</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="42" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 5.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt" align="right">39,879</div>
            </td>
            <td valign="bottom" width="3">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="224">
              <div style="MARGIN-TOP: 2.65pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt"><strong>Net
                earnings</strong></div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 2.65pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt">$</div>
            </td>
            <td valign="bottom" width="34" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 2.65pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt" align="right">96,578</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 2.65pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt">$</div>
            </td>
            <td valign="bottom" width="50" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 2.65pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt" align="right">49,900</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 2.65pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt">$</div>
            </td>
            <td valign="bottom" width="44" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 2.65pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt" align="right">(27,743</div>
            </td>
            <td valign="bottom" width="10">
              <div style="MARGIN-TOP: 2.65pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt">)</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 2.65pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt">$</div>
            </td>
            <td valign="bottom" width="48" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 2.65pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt" align="right">28,900</div>
            </td>
            <td valign="bottom" width="11">&#160;</td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 2.65pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt">$</div>
            </td>
            <td valign="bottom" width="38" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 2.65pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 2.65pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt">$</div>
            </td>
            <td valign="bottom" width="42" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 2.65pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt" align="right">147,635</div>
            </td>
            <td valign="bottom" width="3" style="border-bottom: #ccffcc 3pt double;">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="224">
              <div style="MARGIN-TOP: 2.65pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt">Net
                earnings (loss) attributable to:</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="34">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="50">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="44">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="48">&#160;</td>
            <td valign="bottom" width="11">&#160;</td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="38">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="42">&#160;</td>
            <td valign="bottom" width="3">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="224">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 8.65pt">Limited
                partner </div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt">$</div>
            </td>
            <td valign="bottom" width="34">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">94,656</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt">$</div>
            </td>
            <td valign="bottom" width="50">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">48,907</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="7">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt">$</div>
            </td>
            <td valign="bottom" width="44">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">(27,191</div>
            </td>
            <td valign="bottom" width="10">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt">)</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt">$</div>
            </td>
            <td valign="bottom" width="48">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">28,325</div>
            </td>
            <td valign="bottom" width="11">&#160;</td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="5">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt">$</div>
            </td>
            <td valign="bottom" width="38">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt">$</div>
            </td>
            <td valign="bottom" width="42">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">144,697</div>
            </td>
            <td valign="bottom" width="3">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="224">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 8.65pt">General
                partner </div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="34" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">1,922</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">993</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">(552</div>
            </td>
            <td valign="bottom" width="10">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt">)</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="48" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">575</div>
            </td>
            <td valign="bottom" width="11">&#160;</td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="38" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="42" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">2,938</div>
            </td>
            <td valign="bottom" width="3">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="224">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 3pt double;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt">$</div>
            </td>
            <td valign="bottom" width="34" style="border-bottom: #000000 3pt double;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">96,578</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 3pt double;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt">$</div>
            </td>
            <td valign="bottom" width="50" style="border-bottom: #000000 3pt double;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">49,900</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 3pt double;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt">$</div>
            </td>
            <td valign="bottom" width="44" style="border-bottom: #000000 3pt double;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">(27,743</div>
            </td>
            <td valign="bottom" width="10">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt">)</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt">$</div>
            </td>
            <td valign="bottom" width="48" style="border-bottom: #000000 3pt double;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">28,900</div>
            </td>
            <td valign="bottom" width="11">&#160;</td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 3pt double;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt">$</div>
            </td>
            <td valign="bottom" width="38" style="border-bottom: #000000 3pt double;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 3pt double;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt">$</div>
            </td>
            <td valign="bottom" width="42" style="border-bottom: #000000 3pt double;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">147,635</div>
            </td>
            <td valign="bottom" width="3" style="border-bottom: #ccffcc 3pt double;">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="224">
              <div style="MARGIN-TOP: 2.65pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt">Net&#160;earnings
                per&#160;limited partnership unit:</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="34">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="50">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="44">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="48">&#160;</td>
            <td valign="bottom" width="11">&#160;</td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="38">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="42">&#160;</td>
            <td valign="bottom" width="3">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="224">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 8.65pt">Basic&#160;earnings:</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="34">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="50">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="44">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="48">&#160;</td>
            <td valign="bottom" width="11">&#160;</td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="38">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="42">&#160;</td>
            <td valign="bottom" width="3">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="224">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 8.65pt">Income
                from continuing operations</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt">$</div>
            </td>
            <td valign="bottom" width="34">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">1.09</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="50">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="44">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="48">&#160;</td>
            <td valign="bottom" width="11">&#160;</td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="38">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt">$</div>
            </td>
            <td valign="bottom" width="42">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">1.71</div>
            </td>
            <td valign="bottom" width="3">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="224">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 8.65pt">Income
                from discontinued operations</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="34" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">0.44</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="50">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="44">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="48">&#160;</td>
            <td valign="bottom" width="11">&#160;</td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="38">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="42" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">0.63</div>
            </td>
            <td valign="bottom" width="3">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="224">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 8.65pt">Basic
                earnings&#160;(loss) per&#160;LP&#160;unit</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 3pt double;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt">$</div>
            </td>
            <td valign="bottom" width="34" style="border-bottom: #000000 3pt double;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">1.53</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="50">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="44">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="48">&#160;</td>
            <td valign="bottom" width="11">&#160;</td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="38">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 3pt double;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt">$</div>
            </td>
            <td valign="bottom" width="42" style="border-bottom: #000000 3pt double;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">2.34</div>
            </td>
            <td valign="bottom" width="3">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="224">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 6pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 8.65pt">Weighted&#160;average&#160;limited
                partnership&#160;units&#160;outstanding:</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 3pt double;">&#160;</td>
            <td valign="bottom" width="34" style="border-bottom: #000000 3pt double;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">61,857</div>
            </td>
            <td valign="bottom" width="10" style="border-bottom: #ccffcc 3pt double;">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="50">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="44">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="48">&#160;</td>
            <td valign="bottom" width="11">&#160;</td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="38">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 3pt double;">&#160;</td>
            <td valign="bottom" width="42" style="border-bottom: #000000 3pt double;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">61,857</div>
            </td>
            <td valign="bottom" width="3" style="border-bottom: #ccffcc 3pt double;">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="224">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 8.65pt">Diluted&#160;earnings:</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="34">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="50">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="44">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="48">&#160;</td>
            <td valign="bottom" width="11">&#160;</td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="38">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="42">&#160;</td>
            <td valign="bottom" width="3">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="224">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 8.65pt">Income
                from&#160;continuing&#160;operations</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt">$</div>
            </td>
            <td valign="bottom" width="34">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">1.09</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="50">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="44">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="48">&#160;</td>
            <td valign="bottom" width="11">&#160;</td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="38">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt">$</div>
            </td>
            <td valign="bottom" width="42">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">1.70</div>
            </td>
            <td valign="bottom" width="3">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="224">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 8.65pt">Income
                from&#160;discontinued&#160;operations</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="34" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">0.44</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="50">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="44">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="48">&#160;</td>
            <td valign="bottom" width="11">&#160;</td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="38">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="42" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">0.62</div>
            </td>
            <td valign="bottom" width="3">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="224">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 8.65pt">Diluted&#160;earnings
                per&#160;LP&#160;unit</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 3pt double;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt">$</div>
            </td>
            <td valign="bottom" width="34" style="border-bottom: #000000 3pt double;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">1.53</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="50">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="44">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="48">&#160;</td>
            <td valign="bottom" width="11">&#160;</td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="38">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 3pt double;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt">$</div>
            </td>
            <td valign="bottom" width="42" style="border-bottom: #000000 3pt double;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">2.32</div>
            </td>
            <td valign="bottom" width="3">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="224">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 6pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 8.65pt">Weighted&#160;average&#160;LP&#160;units
                and equivalent partnership units outstanding</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 3pt double;">&#160;</td>
            <td valign="bottom" width="34" style="border-bottom: #000000 3pt double;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">61,857</div>
            </td>
            <td valign="bottom" width="10" style="border-bottom: white 3pt double;">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="50">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="44">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="48">&#160;</td>
            <td valign="bottom" width="11">&#160;</td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="38">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 3pt double;">&#160;</td>
            <td valign="bottom" width="42" style="border-bottom: #000000 3pt double;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="right">62,920</div>
            </td>
            <td valign="bottom" width="3" style="border-bottom: white 3pt double;">&#160;</td>
          </tr>

      </table>
    </div>
    <div style="MARGIN: 0pt" align="center"><br><br></div>
    <div style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 5pt" align="center"><i>See
      accompanying notes</i></div>
    <div style="MARGIN: 0pt" align="center">18</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt" align="center">
  <p align="left"><strong><a href="#toc">Back to Table of Contents</a></strong></p>
  <p></p>
  <strong>AMERICAN REAL ESTATE PARTNERS, L.P. AND SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 8.35pt; MARGIN-BOTTOM: 6.65pt" align="center"><strong>UNAUDITED
      PRO FORMA CONDENSED COMBINED STATEMENTS OF
      OPERATIONS<br>(amounts in 000s except per unit amounts)</strong></div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="164">
            </td>
            <td width="6">
            </td>
            <td width="4">
            </td>
            <td width="32">
            </td>
            <td width="6">
            </td>
            <td width="4">
            </td>
            <td width="36">
            </td>
            <td width="6">
            </td>
            <td width="4">
            </td>
            <td width="35">
            </td>
            <td width="6">
            </td>
            <td width="12">
            </td>
            <td width="4">
            </td>
            <td width="40">
            </td>
            <td width="4">
            </td>
            <td width="13">
            </td>
            <td width="4">
            </td>
            <td width="30">
            </td>
            <td width="6">
            </td>
            <td width="4">
            </td>
            <td width="41">
            </td>
            <td width="2">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="218">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td colspan="19" valign="bottom" width="393" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Year
                Ended December 31, 2006</strong></div>
            </td>
            <td valign="bottom" width="3">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="218">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td colspan="5" valign="bottom" width="109">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Historical</strong></div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td colspan="13" valign="bottom" width="276" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Pro
                Forma Adjustments</strong></div>
            </td>
            <td valign="bottom" width="3">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="218">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td colspan="2" valign="bottom" width="48" style="border-top: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>AREP</strong></div>
            </td>
            <td valign="bottom" width="8" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td colspan="2" valign="bottom" width="53" style="border-top: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>LEAR</strong></div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td colspan="2" valign="bottom" width="52">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Acquisition<br>of
                Lear</strong></div>
            </td>
            <td valign="top" width="8">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td colspan="2" valign="top" width="59" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Lear
                IAC<br>Transactions<br>(4f)</strong></div>
            </td>
            <td valign="top" width="6">&#160;</td>
            <td valign="top" width="17">&#160;</td>
            <td colspan="2" valign="bottom" width="46">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Sale
                of<br>ACEP<br>(5e)</strong></div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td colspan="2" valign="bottom" width="61">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Pro
                Forma<br>Results</strong></div>
            </td>
            <td valign="bottom" width="3">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="218">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="42" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="48" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="46" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="top" width="8">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="top" width="5">&#160;</td>
            <td valign="top" width="53">&#160;</td>
            <td valign="top" width="6">&#160;</td>
            <td valign="top" width="17">&#160;</td>
            <td valign="bottom" width="5" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="41" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="55" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="3">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="218">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 6pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 8.65pt">Revenues:</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="42">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="48">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="46">&#160;</td>
            <td valign="top" width="8">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="top" width="5">&#160;</td>
            <td valign="top" width="53">&#160;</td>
            <td valign="top" width="6">&#160;</td>
            <td valign="top" width="17">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="41">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="55">&#160;</td>
            <td valign="bottom" width="3">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="218">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 8.65pt">Lear
                Automotive </div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt">&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="5">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt">$</div>
            </td>
            <td valign="bottom" width="42">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt">&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="5">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt">$</div>
            </td>
            <td valign="bottom" width="48">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">17,838,900</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt">&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="5">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt">$</div>
            </td>
            <td valign="bottom" width="46">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">&#8212;</div>
            </td>
            <td valign="top" width="8">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt">&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="top" width="5">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt">$</div>
            </td>
            <td valign="top" width="53">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">(3,067,200</div>
            </td>
            <td valign="top" width="6">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt">)&#160;</div>
            </td>
            <td valign="top" width="17">&#160;</td>
            <td valign="bottom" width="5">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt">$</div>
            </td>
            <td valign="bottom" width="41">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt">&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="5">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt">$</div>
            </td>
            <td valign="bottom" width="55">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">14,771,700</div>
            </td>
            <td valign="bottom" width="3">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="218">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 8.65pt">Gaming</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="42">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">385,699</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="48">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">&#8212;</div>
            </td>
            <td valign="top" width="8">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="top" width="5">&#160;</td>
            <td valign="top" width="53">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">&#8212;</div>
            </td>
            <td valign="top" width="6">&#160;</td>
            <td valign="top" width="17">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="41">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">(385,699</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt">)</div>
            </td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="55">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="3">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="218">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 8.65pt">Real
                Estate</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="42">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">134,575</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="48">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">&#8212;</div>
            </td>
            <td valign="top" width="8">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="top" width="5">&#160;</td>
            <td valign="top" width="53">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">&#8212;</div>
            </td>
            <td valign="top" width="6">&#160;</td>
            <td valign="top" width="17">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="41">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="55">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">134,575</div>
            </td>
            <td valign="bottom" width="3">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="218">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 8.65pt">Home
                Furnishings</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="42" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">957,656</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="48" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">&#8212;</div>
            </td>
            <td valign="top" width="8">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="top" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="top" width="53" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">&#8212;</div>
            </td>
            <td valign="top" width="6" style="border-bottom: white 0.5pt solid;">&#160;</td>
            <td valign="top" width="17">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="41" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="55" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">957,656</div>
            </td>
            <td valign="bottom" width="3">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="218">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="42" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">1,477,930</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="48" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">17,838,900</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">&#8212;</div>
            </td>
            <td valign="top" width="8">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="top" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="top" width="53" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">(3,067,200</div>
            </td>
            <td valign="top" width="6" style="border-bottom: #ccffcc 0.5pt solid;">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt">)</div>
            </td>
            <td valign="top" width="17">&#160;</td>
            <td valign="top" width="5">&#160;</td>
            <td valign="top" width="41">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">(385,699</div>
            </td>
            <td valign="top" width="8">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt">)</div>
            </td>
            <td valign="top" width="5">&#160;</td>
            <td valign="top" width="55">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">15,863,931</div>
            </td>
            <td valign="top" width="3">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="218">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 8.65pt">Expenses:</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="42">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="48">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="46">&#160;</td>
            <td valign="top" width="8">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="top" width="5">&#160;</td>
            <td valign="top" width="53">&#160;</td>
            <td valign="top" width="6">&#160;</td>
            <td valign="top" width="17">&#160;</td>
            <td valign="top" width="5">&#160;</td>
            <td valign="top" width="41">&#160;</td>
            <td valign="top" width="8">&#160;</td>
            <td valign="top" width="5">&#160;</td>
            <td valign="top" width="55">&#160;</td>
            <td valign="top" width="3">&#160;</td>
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          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="218">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 8.65pt">Lear
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            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="42">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="48">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">17,545,500</div>
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            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">&#8212;</div>
            </td>
            <td valign="top" width="8">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="top" width="5">&#160;</td>
            <td valign="top" width="53">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">(3,247,300</div>
            </td>
            <td valign="top" width="6">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt">)</div>
            </td>
            <td valign="top" width="17">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="41">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="55">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">14,298,200</div>
            </td>
            <td valign="bottom" width="3">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="218">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 8.65pt">Loss
                on divestiture of Lear&#8217;s Interior business</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="42">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="48">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">636,000</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="top" width="5">&#160;</td>
            <td valign="top" width="53">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">(636,000</div>
            </td>
            <td valign="top" width="6">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt">)</div>
            </td>
            <td valign="top" width="17">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="41">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="55">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="3">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="218">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 8.65pt">Gaming</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="42">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">326,984</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="48">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">&#8212;</div>
            </td>
            <td valign="top" width="8">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="top" width="5">&#160;</td>
            <td valign="top" width="53">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">&#8212;</div>
            </td>
            <td valign="top" width="6">&#160;</td>
            <td valign="top" width="17">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="41">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">(326,984</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt">)</div>
            </td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="55">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="3">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="218">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 8.65pt">Real
                Estate</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="42">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">106,621</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="48">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">&#8212;</div>
            </td>
            <td valign="top" width="8">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="top" width="5">&#160;</td>
            <td valign="top" width="53">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">&#8212;</div>
            </td>
            <td valign="top" width="6">&#160;</td>
            <td valign="top" width="17">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="41">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="55">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">106,621</div>
            </td>
            <td valign="bottom" width="3">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="218">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 8.65pt">Home
                Furnishings</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="42">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">1,108,293</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="48">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">&#8212;</div>
            </td>
            <td valign="top" width="8">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="top" width="5">&#160;</td>
            <td valign="top" width="53">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">&#8212;</div>
            </td>
            <td valign="top" width="6">&#160;</td>
            <td valign="top" width="17">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="41">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="55">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">1,108,293</div>
            </td>
            <td valign="bottom" width="3">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="218">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 8.65pt">Holding
                Company Expenses</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="42" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">25,822</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="48" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">&#8212;</div>
            </td>
            <td valign="top" width="8">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="top" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="top" width="53" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">&#8212;</div>
            </td>
            <td valign="top" width="6" style="border-bottom: white 0.5pt solid;">&#160;</td>
            <td valign="top" width="17">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="41" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="55" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">25,822</div>
            </td>
            <td valign="bottom" width="3">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="218">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="42" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">1,567,720</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="48" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">18,181,500</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">&#8212;</div>
            </td>
            <td valign="top" width="8">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="top" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="top" width="53" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">(3,883,300</div>
            </td>
            <td valign="top" width="6" style="border-bottom: #ccffcc 0.5pt solid;">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt">)</div>
            </td>
            <td valign="top" width="17">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="41" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">(326,984</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt">)</div>
            </td>
            <td valign="bottom" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="55" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">15,538,936</div>
            </td>
            <td valign="bottom" width="3">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="218">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 6pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 8.65pt">Operating
                income (loss)</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="42">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">(89,790</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt">)</div>
            </td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="48">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">(342,600</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt">)</div>
            </td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">&#8212;</div>
            </td>
            <td valign="top" width="8">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="top" width="5">&#160;</td>
            <td valign="top" width="53">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">816,100</div>
            </td>
            <td valign="top" width="6">&#160;</td>
            <td valign="top" width="17">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="41">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">(58,715</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt">)</div>
            </td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="55">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">324,995</div>
            </td>
            <td valign="bottom" width="3">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="218">
              <div style="MARGIN-TOP: 2pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt">Other
                income (expense), net:</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="42">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="48">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="46">&#160;</td>
            <td valign="top" width="8">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="top" width="5">&#160;</td>
            <td valign="top" width="53">&#160;</td>
            <td valign="top" width="6">&#160;</td>
            <td valign="top" width="17">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="41">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="55">&#160;</td>
            <td valign="bottom" width="3">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="218">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 8.65pt">Interest
                expense</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="42">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">(106,612</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt">)</div>
            </td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="48">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">(209,800</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt">)</div>
            </td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">(110,972</div>
            </td>
            <td valign="top" width="8">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt">)</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt">(4e)</div>
            </td>
            <td valign="top" width="5">&#160;</td>
            <td valign="top" width="53">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">400</div>
            </td>
            <td valign="top" width="6">&#160;</td>
            <td valign="top" width="17">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="41">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">21,314</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="55">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">(405,670</div>
            </td>
            <td valign="bottom" width="3">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="218">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 8.65pt">Interest
                and other income</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="42">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">52,672</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="48">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">&#8212;</div>
            </td>
            <td valign="top" width="8">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="top" width="5">&#160;</td>
            <td valign="top" width="53">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">&#8212;</div>
            </td>
            <td valign="top" width="6">&#160;</td>
            <td valign="top" width="17">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="41">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">(2,239</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt">)</div>
            </td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="55">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">50,433</div>
            </td>
            <td valign="bottom" width="3">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="218">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 8.65pt">Other
                income (expense), net</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="42">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">99,277</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="48">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">(101,000</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt">)</div>
            </td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">&#8212;</div>
            </td>
            <td valign="top" width="8">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="top" width="5">&#160;</td>
            <td valign="top" width="53">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">6,000</div>
            </td>
            <td valign="top" width="6">&#160;</td>
            <td valign="top" width="17">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="41">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">239</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="55">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">4,516</div>
            </td>
            <td valign="bottom" width="3">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="218">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 8.65pt">Equity
                on earnings of affiliate</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="42" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">12,620</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="48" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">16,200</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">&#8212;</div>
            </td>
            <td valign="top" width="8">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="top" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="top" width="53" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">(43,400</div>
            </td>
            <td valign="top" width="6">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt">)</div>
            </td>
            <td valign="top" width="17">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt">(4g)</div>
            </td>
            <td valign="bottom" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="41" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="55" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">(14,580</div>
            </td>
            <td valign="bottom" width="3">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="218">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 8.65pt">Loss
                from continuing operations before<br>income taxes and minority
                interests</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="42">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 8.65pt" align="right">(31,833</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 8.65pt">)</div>
            </td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="48">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 8.65pt" align="right">(637,200</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 8.65pt">)</div>
            </td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 8.65pt" align="right">(110,972</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 8.65pt">)</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="top" width="5">&#160;</td>
            <td valign="bottom" width="53">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 8.65pt" align="right">779,100</div>
            </td>
            <td valign="top" width="6" style="border-top: #ffffff 0.5pt solid;">&#160;</td>
            <td valign="top" width="17">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="41">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 8.65pt" align="right">(39,401</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 8.65pt">)</div>
            </td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="55">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 8.65pt" align="right">(40,306</div>
            </td>
            <td valign="bottom" width="3">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 8.65pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="218">
              <div style="MARGIN-TOP: 2pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt">Income
                tax expense</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="42">
              <div style="MARGIN-TOP: 2pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt" align="right">(13,271</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN-TOP: 2pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt">)</div>
            </td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="48">
              <div style="MARGIN-TOP: 2pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt" align="right">(54,900</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN-TOP: 2pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt">)</div>
            </td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN-TOP: 2pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
            </td>
            <td valign="top" width="8">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="top" width="5">&#160;</td>
            <td valign="top" width="53">
              <div style="MARGIN-TOP: 2pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt" align="right">(13,700</div>
            </td>
            <td valign="top" width="6">
              <div style="MARGIN-TOP: 2pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt">)</div>
            </td>
            <td valign="top" width="17">
              <div style="MARGIN-TOP: 2pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt">(4h)</div>
            </td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="41">
              <div style="MARGIN-TOP: 2pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt" align="right">12,758</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="55">
              <div style="MARGIN-TOP: 2pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt" align="right">(69,113</div>
            </td>
            <td valign="bottom" width="3">
              <div style="MARGIN-TOP: 2pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="218">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 6pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Minority
                interests</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="42" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">68,173</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="48" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">(18,300</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt">)</div>
            </td>
            <td valign="bottom" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">&#8212;</div>
            </td>
            <td valign="top" width="8">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="top" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="top" width="53" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">(1,100</div>
            </td>
            <td valign="top" width="6" style="border-bottom: white 0.5pt solid;">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt">)</div>
            </td>
            <td valign="top" width="17">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="41" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="55" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">48,773</div>
            </td>
            <td valign="bottom" width="3" style="border-bottom: white 0.5pt solid;">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="218">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 6pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 8.65pt"><strong>Income
                (loss) from continuing operations</strong></div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="42">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">23,069</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="48">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">(710,400</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt">)</div>
            </td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">(110,972</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt">)</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="top" width="5">&#160;</td>
            <td valign="bottom" width="53">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">764,300</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="top" width="17">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="41">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">(26,643</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt">)</div>
            </td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="55">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">(60,646</div>
            </td>
            <td valign="bottom" width="3">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="218">
              <div style="MARGIN-TOP: 2.65pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 8.65pt"><strong>Income
                (loss) from discontinued operations</strong></div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="42" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 2.65pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 8.65pt" align="right">775,764</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="48" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 2.65pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 8.65pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 2.65pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 8.65pt" align="right">&#8212;</div>
            </td>
            <td valign="top" width="8">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="top" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="53" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 2.65pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 8.65pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: white 0.5pt solid;">&#160;</td>
            <td valign="top" width="17">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="41" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 2.65pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 8.65pt" align="right">26,643</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="55" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 2.65pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 8.65pt" align="right">802,407</div>
            </td>
            <td valign="bottom" width="3" style="border-bottom: white 0.5pt solid;">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="218">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 8.65pt">Income
                (loss) before cumulative effect of<br>a change in accounting
                principle</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="42">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 8.65pt" align="right">798,833</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="48">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 8.65pt" align="right">(710,400</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 8.65pt">)</div>
            </td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 8.65pt" align="right">(110,972</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 8.65pt">)</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="top" width="5">&#160;</td>
            <td valign="bottom" width="53">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 8.65pt" align="right">764,300</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="top" width="17">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="41">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 8.65pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="55">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 8.65pt" align="right">741,761</div>
            </td>
            <td valign="bottom" width="3">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="218">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt">Cumulative
                effect of a change in accounting<br>principle</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="42" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="48" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt" align="right">2,900</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
            </td>
            <td valign="top" width="8">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="top" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="53" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: white 0.5pt solid;">&#160;</td>
            <td valign="top" width="17">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="41" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="55" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt" align="right">2,900</div>
            </td>
            <td valign="bottom" width="3">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="218">
              <div style="MARGIN-TOP: 2pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt"><strong>Net
                earnings (loss)</strong></div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 2pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt">$</div>
            </td>
            <td valign="bottom" width="42" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 2pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt" align="right">798,833</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 2pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt">$</div>
            </td>
            <td valign="bottom" width="48" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 2pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt" align="right">(707,500</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN-TOP: 2pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt">)</div>
            </td>
            <td valign="bottom" width="5" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 2pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt">$</div>
            </td>
            <td valign="bottom" width="46" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 2pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt" align="right">(110,972</div>
            </td>
            <td valign="top" width="8">
              <div style="MARGIN-TOP: 2pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt">)</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="top" width="5" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 2pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt">$</div>
            </td>
            <td valign="bottom" width="53" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 2pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt" align="right">764,300</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #ccffcc 3pt double;">&#160;</td>
            <td valign="top" width="17">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 2pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt">$</div>
            </td>
            <td valign="bottom" width="41" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 2pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 2pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt">$</div>
            </td>
            <td valign="bottom" width="55" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 2pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt" align="right">744,661</div>
            </td>
            <td valign="bottom" width="3" style="border-bottom: #ccffcc 3pt double;">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="218">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 6pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 8.65pt">Net
                earnings (loss) attributable to:</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="42">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="48">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="46">&#160;</td>
            <td valign="top" width="8">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="top" width="5">&#160;</td>
            <td valign="bottom" width="53">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="top" width="17">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="41">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="55">&#160;</td>
            <td valign="bottom" width="3">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="218">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 6pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 8.65pt">Limited
                partner</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt">$</div>
            </td>
            <td valign="bottom" width="42">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">782,936</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt">$</div>
            </td>
            <td valign="bottom" width="48">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">(693,420</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt">)</div>
            </td>
            <td valign="bottom" width="5">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt">$</div>
            </td>
            <td valign="bottom" width="46">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">(108,764</div>
            </td>
            <td valign="top" width="8">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt">)</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="top" width="5">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt">$</div>
            </td>
            <td valign="bottom" width="53">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">749,090</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="top" width="17">&#160;</td>
            <td valign="bottom" width="5">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt">$</div>
            </td>
            <td valign="bottom" width="41">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt">$</div>
            </td>
            <td valign="bottom" width="55">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">729,842</div>
            </td>
            <td valign="bottom" width="3">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="218">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 6pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 8.65pt">General
                partner </div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="42" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">15,897</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="48" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">(14,080</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt">)</div>
            </td>
            <td valign="bottom" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">(2,208</div>
            </td>
            <td valign="top" width="8">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt">)</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="top" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="53" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">15,210</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="top" width="17">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="41" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="55" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">14,819</div>
            </td>
            <td valign="bottom" width="3">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="218">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt">$</div>
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            <td valign="bottom" width="42" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">798,833</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt">$</div>
            </td>
            <td valign="bottom" width="48" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">(707,500</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt">)</div>
            </td>
            <td valign="bottom" width="5" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt">$</div>
            </td>
            <td valign="bottom" width="46" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">(110,972</div>
            </td>
            <td valign="top" width="8">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt">)</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="top" width="5" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt">$</div>
            </td>
            <td valign="bottom" width="53" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">764,300</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #ccffcc 3pt double;">&#160;</td>
            <td valign="top" width="17">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt">$</div>
            </td>
            <td valign="bottom" width="41" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt">$</div>
            </td>
            <td valign="bottom" width="55" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">744,661</div>
            </td>
            <td valign="bottom" width="3" style="border-bottom: #ccffcc 3pt double;">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="218">
              <div style="MARGIN-TOP: 2pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt">Net&#160;earnings
                per&#160;limited partnership unit:</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="42">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="48">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="46">&#160;</td>
            <td valign="top" width="8">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="top" width="5">&#160;</td>
            <td valign="bottom" width="53">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="top" width="17">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="41">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="55">&#160;</td>
            <td valign="bottom" width="3">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="218">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 8.65pt">Basic&#160;earnings:</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="42">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="48">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="46">&#160;</td>
            <td valign="top" width="8">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="top" width="5">&#160;</td>
            <td valign="bottom" width="53">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="top" width="17">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="41">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="55">&#160;</td>
            <td valign="bottom" width="3">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="218">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 8.65pt">Income
                (loss) from&#160;continuing&#160;operations</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt">$</div>
            </td>
            <td valign="bottom" width="42">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">0.40</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="48">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="46">&#160;</td>
            <td valign="top" width="8">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="top" width="5">&#160;</td>
            <td valign="bottom" width="53">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="top" width="17">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="41">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt">$</div>
            </td>
            <td valign="bottom" width="55">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">(0.93</div>
            </td>
            <td valign="bottom" width="3">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="218">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 8.65pt">Income&#160;from&#160;discontinued&#160;operations</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="42">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">12.29</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="48">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="46">&#160;</td>
            <td valign="top" width="8">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="top" width="5">&#160;</td>
            <td valign="bottom" width="53">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="top" width="17">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="41">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="55">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">12.71</div>
            </td>
            <td valign="bottom" width="3">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="218">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 8.65pt">Cumulative
                effect of a change in<br>accounting principle</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="42" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="8" style="border-bottom: white 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="48">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="46">&#160;</td>
            <td valign="top" width="8">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="top" width="5">&#160;</td>
            <td valign="bottom" width="53">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="top" width="17">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="41">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="55" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">0.05</div>
            </td>
            <td valign="bottom" width="3" style="border-bottom: white 0.5pt solid;">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="218">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 30pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 8.65pt">Basic
                earnings&#160;(loss) per&#160;LP&#160;unit</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt">$</div>
            </td>
            <td valign="bottom" width="42" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">12.69</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="48">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="46">&#160;</td>
            <td valign="top" width="8">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="top" width="5">&#160;</td>
            <td valign="bottom" width="53">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="top" width="17">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="41">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt">$</div>
            </td>
            <td valign="bottom" width="55" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">11.83</div>
            </td>
            <td valign="bottom" width="3">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="218">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 6pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 8.65pt">Weighted&#160;average&#160;limited
                partnership&#160;units&#160;outstanding:</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 3pt double;">&#160;</td>
            <td valign="bottom" width="42" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">61,857</div>
            </td>
            <td valign="bottom" width="8" style="border-bottom: white 3pt double;">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="48">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="46">&#160;</td>
            <td valign="top" width="8">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="top" width="5">&#160;</td>
            <td valign="bottom" width="53">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="top" width="17">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="41">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 3pt double;">&#160;</td>
            <td valign="bottom" width="55" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">61,857</div>
            </td>
            <td valign="bottom" width="3" style="border-bottom: white 3pt double;">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="218">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 8.65pt">Diluted&#160;earnings:</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="42">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="48">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="46">&#160;</td>
            <td valign="top" width="8">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="top" width="5">&#160;</td>
            <td valign="top" width="53">&#160;</td>
            <td valign="top" width="6">&#160;</td>
            <td valign="top" width="17">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="41">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="55">&#160;</td>
            <td valign="bottom" width="3">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="218">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 8.65pt">Income
                (loss) from&#160;continuing&#160;operations</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt">$</div>
            </td>
            <td valign="bottom" width="42">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">0.40</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="48">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="46">&#160;</td>
            <td valign="top" width="8">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="top" width="5">&#160;</td>
            <td valign="top" width="53">&#160;</td>
            <td valign="top" width="6">&#160;</td>
            <td valign="top" width="17">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="41">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt">$</div>
            </td>
            <td valign="bottom" width="55">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">(0.93</div>
            </td>
            <td valign="bottom" width="3">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="218">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 8.65pt">Income&#160;from&#160;discontinued&#160;operations</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="42">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">12.29</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="48">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="46">&#160;</td>
            <td valign="top" width="8">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="top" width="5">&#160;</td>
            <td valign="top" width="53">&#160;</td>
            <td valign="top" width="6">&#160;</td>
            <td valign="top" width="17">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="41">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="55">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">12.71</div>
            </td>
            <td valign="bottom" width="3" style="border-bottom: #ccffcc 3pt double;">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="218">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 18pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 8.65pt">Cumulative
                effect of a change in<br>accounting principle</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="42" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="8" style="border-bottom: white 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="48">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="46">&#160;</td>
            <td valign="top" width="8">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="top" width="5">&#160;</td>
            <td valign="top" width="53">&#160;</td>
            <td valign="top" width="6">&#160;</td>
            <td valign="top" width="17">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="41">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="55" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">0.05</div>
            </td>
            <td valign="bottom" width="3" style="border-bottom: white 0.5pt solid;">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="218">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 30pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 8.65pt">Diluted&#160;earnings&#160;per&#160;LP&#160;unit</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt">$</div>
            </td>
            <td valign="bottom" width="42" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">12.69</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="48">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="46">&#160;</td>
            <td valign="top" width="8">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="top" width="5">&#160;</td>
            <td valign="top" width="53">&#160;</td>
            <td valign="top" width="6">&#160;</td>
            <td valign="top" width="17">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="41">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt">$</div>
            </td>
            <td valign="bottom" width="55" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">11.83</div>
            </td>
            <td valign="bottom" width="3">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="218">
              <div style="MARGIN-TOP: 1.35pt; PADDING-LEFT: 6pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 8.65pt">Weighted&#160;average&#160;LP&#160;units&#160;and
                equivalent<br>partnership units outstanding:</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 3pt double;">&#160;</td>
            <td valign="bottom" width="42" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">61,857</div>
            </td>
            <td valign="bottom" width="8" style="border-bottom: white 3pt double;">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="48">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="46">&#160;</td>
            <td valign="top" width="8">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="top" width="5">&#160;</td>
            <td valign="top" width="53">&#160;</td>
            <td valign="top" width="6">&#160;</td>
            <td valign="top" width="17">&#160;</td>
            <td valign="bottom" width="5">&#160;</td>
            <td valign="bottom" width="41">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="5" style="border-bottom: #000000 3pt double;">&#160;</td>
            <td valign="bottom" width="55" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 1.35pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 8.65pt" align="right">61,857</div>
            </td>
            <td valign="bottom" width="3" style="border-bottom: white 3pt double;">&#160;</td>
          </tr>

      </table>
    </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 5.35pt" align="center"><br><br></div>
    <div style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 5pt" align="center"><i>See
      accompanying notes</i></div>
    <div style="MARGIN: 0pt" align="center">19</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="MARGIN-TOP: .35pt; MARGIN-BOTTOM: 6.65pt; PAGE-BREAK-BEFORE: always" align="center">
</div>
    <div style="MARGIN: 0pt" align="center">
<p align="left"><strong><a href="#toc">Back to Table of Contents</a></strong></p>
  <p></p>
  <strong>AMERICAN REAL ESTATE PARTNERS, L.P. AND SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 8.35pt; MARGIN-BOTTOM: 6.65pt" align="center"><strong>UNAUDITED
      PRO FORMA CONDENSED COMBINED STATEMENTS OF
      OPERATIONS<br>(amounts in 000s except per share amounts)</strong></div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="303">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="32">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="38">
            </td>
            <td width="15">
            </td>
            <td width="5">
            </td>
            <td width="34">
            </td>
            <td width="3">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="404">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="8" valign="bottom" width="198" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Year
                Ended December 31, 2005</strong></div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="404">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Historical</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="58" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Pro
                Forma<br>Adjustments</strong></div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td colspan="2" valign="bottom" width="52">&#160;</td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="404">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>AREP</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="58" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Sale
                of<br>ACEP (5e)</strong></div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td colspan="2" valign="bottom" width="52" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Pro
                Forma<br>Results</strong></div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="404">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="43">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="51">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">&#160;</td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="404">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Revenues:</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="43">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="51">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">&#160;</td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="404">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Gaming</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="43">
              <div style="MARGIN: 0pt" align="right">327,982</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">(327,982</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="404">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Real
                Estate</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="43">
              <div style="MARGIN: 0pt" align="right">100,299</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">100,299</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="404">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Home
                Furnishings</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="43" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">472,681</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="51" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">472,681</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: #ccffcc 0.5pt solid;">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="404">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="43" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">900,962</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="51" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(327,982</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">572,980</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: white 0.5pt solid;">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="404">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Expenses:</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="43">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="51">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">&#160;</td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="404">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Gaming</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="43">
              <div style="MARGIN: 0pt" align="right">260,955</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">(260,955</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="404">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Real
                Estate</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="43">
              <div style="MARGIN: 0pt" align="right">82,512</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">82,512</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="404">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Home
                Furnishings</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="43">
              <div style="MARGIN: 0pt" align="right">495,110</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">495,110</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="404">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Holding
                Company Expenses</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="43">
              <div style="MARGIN: 0pt" align="right">12,478</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">12,478</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="404">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Acquisition
                costs</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="43" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">4,664</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="51" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">4,664</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: white 0.5pt solid;">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="404">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="43" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">855,719</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="51" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(260,955</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">594,764</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: #ccffcc 0.5pt solid;">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="404">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Operating
                income (loss)</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="43">
              <div style="MARGIN: 0pt" align="right">45,243</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">(67,027</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">(21,784</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="404">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">Other
                income (expense), net:</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="43">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="51">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">&#160;</td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="404">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Interest
                expense</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="43">
              <div style="MARGIN: 0pt" align="right">(91,174</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">18,846</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">(72,328</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="404">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Interest
                and other income</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="43">
              <div style="MARGIN: 0pt" align="right">42,791</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">(1,617</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">41,174</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="404">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Other
                income (expense), net</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="43">
              <div style="MARGIN: 0pt" align="right">(12,861</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">(25</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">(12,886</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="404">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Equity
                on earnings of affiliate</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="43" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">1,375</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="51" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">1,375</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: #ccffcc 0.5pt solid;">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="404">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">Loss
                from continuing operations before income taxes and minority
                interests</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="43">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt" align="right">(14,626</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">)</div>
            </td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="51">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt" align="right">(49,823</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">)</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt" align="right">(64,449</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="404">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Income
                tax expense</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="43">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt" align="right">(18,170</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">)</div>
            </td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="51">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt" align="right">16,789</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt" align="right">(1,381</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="404">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Minority
                interests</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="43" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">10,140</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="51" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">10,140</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: white 0.5pt solid;">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="404">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt"><strong>Loss
                from continuing operations</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="43">
              <div style="MARGIN: 0pt" align="right">(22,656</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">(33,034</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">(55,690</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="404">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt"><strong>Income
                (loss) from discontinued operations</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="43" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt" align="right">(3,013</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">)</div>
            </td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="51" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt" align="right">33,034</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt" align="right">30,021</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="404">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt"><strong>Net
                loss</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">$</div>
            </td>
            <td valign="bottom" width="43" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt" align="right">(25,669</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">)</div>
            </td>
            <td valign="bottom" width="7" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">$</div>
            </td>
            <td valign="bottom" width="51" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">$</div>
            </td>
            <td valign="bottom" width="46" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt" align="right">(25,669)</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: #ccffcc 3pt double;">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="404">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">Net
                loss attributable to:</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="43">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="51">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">&#160;</td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="404">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Limited
                partner</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="43">
              <div style="MARGIN: 0pt" align="right">(20,292</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">(20,292</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="404">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">General
                partner</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="43" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(5,377</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="51" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(5,377</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="404">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="43" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">(25,669</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="51" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="46" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">(25,669</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: #ccffcc 3pt double;">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="404">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">Net&#160;loss
                per&#160;limited partnership unit:</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="43">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="51">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">&#160;</td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="404">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Basic&#160;earnings:</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="43">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="51">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">&#160;</td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="404">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Loss
                from&#160;continuing&#160;operations</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="43">
              <div style="MARGIN: 0pt" align="right">(0.31</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="51">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">(0.90</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="404">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Income&#160;from&#160;discontinued&#160;operations</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="43" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(0.05</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="51">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">0.54</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="404">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Basic
                loss per&#160;LP&#160;unit</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="43" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">(0.36</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="51">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="46" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">(0.36</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="404">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Weighted&#160;average&#160;limited
                partnership&#160;units&#160;outstanding:</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">&#160;</td>
            <td valign="bottom" width="43" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">54,085</div>
            </td>
            <td valign="bottom" width="16" style="border-bottom: #ccffcc 3pt double;">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="51">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">&#160;</td>
            <td valign="bottom" width="46" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">54,085</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: #ccffcc 3pt double;">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="404">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Diluted&#160;earnings:</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="43">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="51">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">&#160;</td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="404">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Loss
                from&#160;continuing&#160;operations</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="43">
              <div style="MARGIN: 0pt" align="right">(0.31</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="51">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">(0.90</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="404">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Income&#160;(loss)&#160;from&#160;discontinued&#160;operations</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="43" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(0.05</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="51">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">0.54</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="404">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Diluted&#160;loss&#160;per&#160;LP&#160;unit</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="43" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">(0.36</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="51">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="46" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">(0.36</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="404">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Weighted&#160;average&#160;LP&#160;units
                and&#160;equivalent partnership&#160;units&#160;outstanding</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">&#160;</td>
            <td valign="bottom" width="43" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">54,085</div>
            </td>
            <td valign="bottom" width="16" style="border-bottom: white 3pt double;">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="51">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">&#160;</td>
            <td valign="bottom" width="46" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">54,085</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: white 3pt double;">&#160;</td>
          </tr>

      </table>
    </div>
    <div style="MARGIN: 0pt" align="center"><br><br></div>
    <div style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 5pt" align="center"><i>See
      accompanying notes</i></div>
    <div style="MARGIN: 0pt" align="center">20</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt" align="center">
  <p align="left"><strong><a href="#toc">Back to Table of Contents</a></strong></p>
  <p></p>
  <strong>AMERICAN REAL ESTATE PARTNERS, L.P. AND SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 6.65pt" align="center"><strong>UNAUDITED
      PRO FORMA CONDENSED COMBINED STATEMENTS OF
      OPERATIONS<br>(amounts in 000s except per share amounts)</strong></div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="299">
            </td>
            <td width="13">
            </td>
            <td width="5">
            </td>
            <td width="33">
            </td>
            <td width="13">
            </td>
            <td width="5">
            </td>
            <td width="39">
            </td>
            <td width="16">
            </td>
            <td width="5">
            </td>
            <td width="33">
            </td>
            <td width="3">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="398">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td colspan="8" valign="bottom" width="203" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Year
                Ended December&#160;31, 2004 </strong></div>
            </td>
            <td valign="top" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="398">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td colspan="2" valign="bottom" width="51" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Historical</strong></div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td colspan="2" valign="bottom" width="60" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Pro
                Forma<br>Adjustments</strong></div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td colspan="2" valign="bottom" width="51">&#160;</td>
            <td valign="top" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="398">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td colspan="2" valign="bottom" width="51" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>AREP</strong></div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td colspan="2" valign="bottom" width="60" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Sale
                of<br>ACEP (5e)</strong></div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td colspan="2" valign="bottom" width="51" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Pro
                Forma<br>Results</strong></div>
            </td>
            <td valign="top" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="398">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="45">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="45">&#160;</td>
            <td valign="top" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="398">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Revenues:</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="45">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="45">&#160;</td>
            <td valign="top" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="398">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Gaming</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">299,981</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">(299,981</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="top" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="398">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Real
                Estate</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">61,557</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">61,557</div>
            </td>
            <td valign="top" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="398">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-top: #000000 0.5pt solid; border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="45" style="border-top: #000000 0.5pt solid; border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">361,538</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7" style="border-top: #000000 0.5pt solid; border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="52" style="border-top: #000000 0.5pt solid; border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(299,981</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6" style="border-top: #000000 0.5pt solid; border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="45" style="border-top: #000000 0.5pt solid; border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">61,557</div>
            </td>
            <td valign="top" width="4" style="border-top: #ffffff 0.5pt solid; border-bottom: #ccffcc 0.5pt solid;">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="398">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Expenses:</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="45">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="45">&#160;</td>
            <td valign="top" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="398">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Gaming</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">251,119</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">(251,119</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="top" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="398">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Real
                Estate</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">49,681</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">49,681</div>
            </td>
            <td valign="top" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="398">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Holding
                Company Expenses</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">4,327</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">4,327</div>
            </td>
            <td valign="top" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="398">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Acquisition
                costs</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="45" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">414</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="52" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="45" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">414</div>
            </td>
            <td valign="top" width="4" style="border-bottom: white 0.5pt solid;">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="398">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="45" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">305,541</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="52" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(251,119</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="45" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">54,422</div>
            </td>
            <td valign="top" width="4" style="border-bottom: #ccffcc 0.5pt solid;">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="398">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Operating
                income (loss)</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">55,997</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">(48,862</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">7,135</div>
            </td>
            <td valign="top" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="398">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="45">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="45">&#160;</td>
            <td valign="top" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="398">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Other
                income (expense), net:</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="45">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="45">&#160;</td>
            <td valign="top" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="398">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Interest
                expense</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">(47,320</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">18,939</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">(28,381</div>
            </td>
            <td valign="top" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="398">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Interest
                and other income</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">42,145</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">(1,049</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">41,096</div>
            </td>
            <td valign="top" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="398">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Other
                income (expense), net</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">24,453</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">24,453</div>
            </td>
            <td valign="top" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="398">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">Income
                (Loss) from continuing operations before income taxes </div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="45" style="border-top: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt" align="right">75,275</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="52" style="border-top: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt" align="right">(30,972</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">)</div>
            </td>
            <td valign="bottom" width="6" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="45" style="border-top: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt" align="right">44,303</div>
            </td>
            <td valign="top" width="4" style="border-top: #ffffff 0.5pt solid;">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="398">
              <div style="MARGIN: 0pt">Income tax expense</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">(10,099</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">10,099</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="top" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="398">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt"><strong>Income
                (loss) from continuing operations</strong></div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="45" style="border-top: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">65,176</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="52" style="border-top: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(20,873</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="45" style="border-top: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">44,303</div>
            </td>
            <td valign="top" width="4" style="border-top: #ffffff 0.5pt solid;">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="398">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt"><strong>Income
                from discontinued operations</strong></div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="45" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt" align="right">88,578</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="52" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt" align="right">20,873</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="45" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt" align="right">109,451</div>
            </td>
            <td valign="top" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="398">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt"><strong>Net
                earnings</strong></div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">$</div>
            </td>
            <td valign="bottom" width="45" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt" align="right">153,754</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">$</div>
            </td>
            <td valign="bottom" width="52" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">$</div>
            </td>
            <td valign="bottom" width="45" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt" align="right">153,754</div>
            </td>
            <td valign="top" width="4" style="border-bottom: white 3pt double;">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="398">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Net
                earnings attributable to:</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="45">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="45">&#160;</td>
            <td valign="top" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="398">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Limited
                partner</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">130,850</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">130,850</div>
            </td>
            <td valign="top" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="398">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">General
                partner</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="45" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">22,904</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="52" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="45" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">22,904</div>
            </td>
            <td valign="top" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="398">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="45" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">153,754</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="52" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="45" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">153,754</div>
            </td>
            <td valign="top" width="4" style="border-bottom: white 3pt double;">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="398">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Net&#160;earnings
                per&#160;limited partnership unit:</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="45">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="45">&#160;</td>
            <td valign="top" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="398">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Basic&#160;earnings:</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="45">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="45">&#160;</td>
            <td valign="top" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="398">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Income
                (loss) from&#160;continuing&#160;operations</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">0.96</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">0.51</div>
            </td>
            <td valign="top" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="398">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Income&#160;(loss)&#160;from&#160;discontinued&#160;operations</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="45" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">1.88</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="45" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">2.33</div>
            </td>
            <td valign="top" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="398">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Basic
                earnings&#160;(loss) per&#160;LP&#160;unit</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="45" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">2.84</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="45" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">2.84</div>
            </td>
            <td valign="top" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="398">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Weighted&#160;average&#160;limited
                partnership&#160;units&#160;outstanding:</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">&#160;</td>
            <td valign="bottom" width="45" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">46,098</div>
            </td>
            <td valign="bottom" width="17" style="border-bottom: white 3pt double;">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">&#160;</td>
            <td valign="bottom" width="45" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">46,098</div>
            </td>
            <td valign="top" width="4" style="border-bottom: white 3pt double;">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="398">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Diluted&#160;earnings:</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="45">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="45">&#160;</td>
            <td valign="top" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="398">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Income
                (loss) from&#160;continuing&#160;operations</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">0.95</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">0.51</div>
            </td>
            <td valign="top" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="398">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Income&#160;(loss)&#160;from&#160;discontinued&#160;operations</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="45" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">1.69</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="45" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">2.33</div>
            </td>
            <td valign="top" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="398">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Diluted&#160;earnings&#160;(loss)&#160;per&#160;LP&#160;unit</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="45" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">2.64</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="45" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">2.84</div>
            </td>
            <td valign="top" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="398">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Weighted&#160;average&#160;LP&#160;units
                and&#160;equivalent partnership&#160;units&#160;outstanding</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">&#160;</td>
            <td valign="bottom" width="45" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">51,542</div>
            </td>
            <td valign="bottom" width="17" style="border-bottom: #ccffcc 3pt double;">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">&#160;</td>
            <td valign="bottom" width="45" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">46,098</div>
            </td>
            <td valign="top" width="4" style="border-bottom: #ccffcc 3pt double;">&#160;</td>
          </tr>

      </table>
    </div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt"><br><br></div>
    <div style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 5pt" align="center"><i>See
      accompanying notes</i></div>
    <div style="MARGIN: 0pt" align="center">21</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt" align="center">
  <p align="left"><strong><a href="#toc">Back to Table of Contents</a></strong></p>
  <p></p>
  <strong>NOTES TO UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>1. DESCRIPTION OF
      TRANSACTIONS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>Potential
      Acquisition</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">On
      February 9, 2007, we entered into an agreement and plan of merger pursuant
      to
      which we would acquire Lear for an aggregate consideration of approximately
      $5.2
      billion, including the assumption by the surviving entity of certain outstanding
      indebtedness of Lear and the refinancing of Lear&#8217;s existing term loan and credit
      facility. In connection with the planned merger, our subsidiary, AREP Car
      Holdings Corp., entered into a commitment letter with Bank of America, N.A.,
      and
      Banc of America Securities LLC on February 8, 2007, pursuant to which Bank
      of
      America would act as the initial lender under two senior secured credit
      facilities in an aggregate principal amount of $3.6 billion, consisting of
      a
      $1.0 billion senior secured revolving facility and a $2.6 billion senior secured
      term loan B facility. The credit facilities, along with cash on hand, are
      intended to refinance and replace Lear&#8217;s existing credit facilities and to fund
      the transactions contemplated by the merger. We intend to fund approximately
      $1.3 billion of the purchase price from our cash and cash equivalents and
      investments. The transaction is conditioned upon (i)&#160;clearance under the
      Hart-Scott-Rodino Antitrust Improvements Act of 1976, and the applicable foreign
      antitrust laws of certain other jurisdictions, (ii) approval of the merger
      and
      adoption of the merger agreement by Lear stockholders and (iii) other customary
      closing conditions. AREP expects that the transaction will close on or about
      July 1, 2007, provided the foregoing conditions which have not yet been
      satisfied or waived are satisfied or waived. There can be no assurance that
      we
      will be able to consummate the transaction.</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>Pending Sale
      of
      American Casino &amp; Entertainment Properties LLC</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">On April
      22, 2007, American Entertainment Properties Corp, or AEP, a wholly owned
      indirect subsidiary of AREP, entered into a Membership Interest Purchase
      Agreement with W2007/ACEP Holdings, LLC, an affiliate of Whitehall Street Real
      Estate Funds, a series of real estate investment funds affiliated with Goldman,
      Sachs &amp; Co., to sell all of the issued and outstanding membership interests
      of ACEP, which comprises our gaming operations, for $1.3 billion, plus or minus
      certain adjustments such as working capital, more fully described in the
      agreement. Pursuant to the terms of the agreement, AEP is required to cause
      ACEP
      to repay, from funds provided by AEP, the principal, interest, prepayment
      penalty or premium due on ACEP&#8217;s 7.85% senior secured notes due 2012 and ACEP&#8217;s
      senior secured credit facility. With this transaction, we anticipate realizing
      a
      gain of approximately $0.57 billion on our investments in ACEP, after income
      taxes. ACEP&#8217;s casino assets are comprised of the Stratosphere Casino Hotel &amp;
Tower, the Arizona Charlie&#8217;s Decatur, the Arizona Charlie&#8217;s Boulder and the
      Aquarius Casino Resort. The transaction is subject to the approval of the Nevada
      Gaming Commission and the Nevada State Gaming Control Board, as well as
      customary conditions. The parties expect to close the transaction in
      approximately December&#160;2007; however, there can be no assurance that we
      will be able to consummate the transaction.</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>2. BASIS OF
      PRESENTATION</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">AREP
      accounts for acquisitions under Financial Accounting Standards Board Statement
      No. 141, <i>Business Combinations</i>. In accordance with business combination
      accounting, AREP will allocate the purchase price of Lear to the tangible and
      intangible assets acquired and liabilities assumed based on their estimated
      fair
      values. AREP&#8217;s management has not yet determined the fair value of the assets
      and liabilities to be acquired as the acquisition has not yet been consummated.
      The final determination of such assumptions and estimates cannot be made until
      AREP completes the acquisition of Lear. Therefore, for purposes of the pro
      forma
      financial statements, the excess of the purchase price over the book value
      of
      Lear&#8217;s assets and liabilities has been allocated to goodwill.</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>3. LEAR
      ACQUISITION</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      purchase price and purchase price allocation below are preliminary estimates
      as
      the acquisition has not been completed and the date for which the assets to
      be
      acquired and liabilities to be assumed has not been determined.</div>
    <div style="MARGIN: 0pt" align="center"><br><br></div>
    <div style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 5pt" align="center"><i>See
      accompanying notes</i></div>
    <div style="MARGIN: 0pt" align="center">22</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt" align="center">
  <p align="left"><strong><a href="#toc">Back to Table of Contents</a></strong></p>
  <p></p>
  <strong>NOTES TO UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>3. LEAR ACQUISITION
&#8211;
(continued)</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>Preliminary
      Purchase Price</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 6.65pt; TEXT-INDENT: 18pt">The
      total preliminary purchase price to be allocated is comprised of:</div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="302">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="40">
            </td>
            <td width="3">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="403">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="60">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center">(in
                000s)</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="403">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Purchase
                of outstanding common stock of Lear at $36.00 per
                share&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="53">
              <div style="MARGIN: 0pt" align="right">2,857,991</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="403">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Less
                amount to be allocated to the general partner(1) </div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="53" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(62,691</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="403">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Total
                preliminary purchase price to be allocated</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="53" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">2,795,300</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: #000000 3pt double;">&#160;</td>
          </tr>

      </table>
    </div>
    <div style="FONT-SIZE: 11pt; MARGIN: 0pt; LINE-HEIGHT: 13pt">&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;</div>
    <div style="MARGIN-TOP: 0pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: -12pt; TEXT-INDENT: -18pt">(1)</div>
    <div style="MARGIN-TOP: 0pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 2.5pt">As of
      March&#160;31, 2007, Icahn Partners LP, Icahn Partners Master Fund LP, Koala
      Holding Limited Partnership and High River Limited Partnership, which are
      affiliates of Mr. Icahn, beneficially owned approximately 16% of Lear&#8217;s
      outstanding common stock. In accordance with generally accepted accounting
      principles, in connection with the acquisition of Lear stock, the excess of
      cash
      disbursed over the historical cost of the shares beneficially owned by Mr.
      Icahn, which amounts to approximately $62.7 million, will be charged to AREP&#8217;s
      general partner&#8217;s equity.</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>Preliminary
      Purchase Price Allocation</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">For
      purposes of the pro forma financial statements, AREP has used Lear&#8217;s assets and
      liabilities as of March 31, 2007 as the basis for developing AREP&#8217;s fair value
      estimates.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 6.65pt; TEXT-INDENT: 18pt">The
      total preliminary purchase price will be allocated to Lear&#8217;s tangible and
      intangible assets acquired, and liabilities assumed based on their estimated
      fair values as of the acquisition date. The excess of the purchase price over
      the net tangible and identifiable intangible assets will be recorded as
      goodwill. For purposes of the accompanying pro forma financial statements,
      the
      total preliminary purchase price was allocated as follows:</div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="317">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="43">
            </td>
            <td width="3">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="423">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="64">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center">(in
                000s)</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="423">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Current
                assets </div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="57">
              <div style="MARGIN: 0pt" align="right">3,579,600</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="423">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Property,
                plant &amp; equipment, net </div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="57">
              <div style="MARGIN: 0pt" align="right">1,425,900</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="423">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Investments</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="57">
              <div style="MARGIN: 0pt" align="right">183,200</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="423">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Other
                non current assets </div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="57">
              <div style="MARGIN: 0pt" align="right">347,300</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="423">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Goodwill,
                net </div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="57">
              <div style="MARGIN: 0pt" align="right">4,189,500</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="423">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Current
                liabilities </div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="57">
              <div style="MARGIN: 0pt" align="right">(3,671,000</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="423">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Long-term
                debt </div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="57">
              <div style="MARGIN: 0pt" align="right">(2,431,800</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="423">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Other
                non current liabilities and minority interests</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="57" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(827,400</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="423">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Total
                preliminary purchase price
                allocation&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="57" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">2,795,300</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: #ccffcc 3pt double;">&#160;</td>
          </tr>

      </table>
    </div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>Lear IAC
      Transactions</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 11pt">On
      October 16, 2006, Lear completed the contribution of substantially all of its
      European interior business to International Automotive Components Group, LLC
      (&#8220;IAC Europe&#8221;), its joint venture with WL Ross &amp; Co. LLC and Franklin Mutual
      Advisers, LLC, in exchange for a one-third equity interest in IAC Europe (the
      &#8220;IAC Europe Transaction&#8221;). On March 31, 2007, Lear completed the transfer of
      substantially all of the assets of its North American interior business (as
      well
      as its interests in two China joint ventures) to International Automotive
      Components Group North America, Inc. (the &#8220;IAC North America Transaction&#8221;). In
      addition, a wholly owned subsidiary of Lear contributed approximately $27
      million in cash to International Automotive Components Group North America,
      LLC
      (&#8220;IACNA&#8221;) in exchange for a 25% equity interest in IACNA and warrants for an
      additional 7% of the current outstanding common equity of IACNA. In connection
      with the IAC North America Transaction, International Automotive Components
      Group North America, Inc. assumed the ordinary course liabilities of Lear&#8217;s
      North American interior business, and Lear retained certain pre-closing
      liabilities, including pension and postretirement liabilities incurred through
      the closing date of the transaction.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">For
      accounting purposes, Lear&#8217;s interests in IACNA and IAC Europe will be accounted
      for under the equity method of accounting. The pro forma adjustments related
      to
      Lear&#8217;s accounting for these equity investments do not reflect purchase
      accounting adjustments to be recorded by IACNA and IAC Europe and do not reflect
      the operations</div>
    <div style="MARGIN: 0pt" align="center"><br><br></div>
    <div style="MARGIN: 0pt" align="center">23</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt" align="center">
  <p align="left"><strong><a href="#toc">Back to Table of Contents</a></strong></p>
  <p></p>
  <strong>NOTES TO UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>3. LEAR ACQUISITION
&#8211;
(continued)</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt">of other businesses acquired
      by IAC Europe. Consequently, the amounts reflected in Lear&#8217;s unaudited pro forma
      condensed consolidated financial statements are subject to change.</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>4. PRO FORMA
      ADJUSTMENTS &#8211; LEAR ACQUISITION</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      following pro forma adjustments are included in the unaudited pro forma
      condensed combined balance sheet:</div>
    <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: -12pt; TEXT-INDENT: -18pt">4a</div>
    <div style="MARGIN-TOP: 0pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 6.65pt">To
      record the following adjustments to cash:</div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="298">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="43">
            </td>
            <td width="3">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="398">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="64">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center">(in
                000s)</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="398">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Estimated
                proceeds from borrowings </div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="57">
              <div style="MARGIN: 0pt" align="right">2,600,000</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="398">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Estimated
                cash paid for Lear common
                stock&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="57">
              <div style="MARGIN: 0pt" align="right">(2,857,991</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="398">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Estimated
                transaction costs &#8211; Lear</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="57">
              <div style="MARGIN: 0pt" align="right">(80,100</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="398">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Estimated
                repayment of Lear debt </div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="57" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(1,118,400</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="398">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Total
                adjustments to cash </div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="57" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">(1,456,491</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: #ccffcc 3pt double;">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: -12pt; TEXT-INDENT: -18pt">4b</div>
    <div style="MARGIN-TOP: 0pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 6.65pt">To
      record the following adjustments to goodwill:</div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="302">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="40">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="403">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="60">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center">(in
                000s)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="403">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Preliminary
                fair
                value&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="53">
              <div style="MARGIN: 0pt" align="right">4,189,500</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="403">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Historical
                amount </div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="53" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">2,006,600</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="403">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Increase
                </div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="53" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">2,182,900</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: -12pt; TEXT-INDENT: -18pt">4c</div>
    <div style="MARGIN-TOP: 0pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 6.65pt">To
      record the following adjustments to long-term debt:</div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="303">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="43">
            </td>
            <td width="3">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="404">&#160;</td>
            <td valign="top" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="64">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center">(in
                000s)</div>
            </td>
            <td valign="top" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="404">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Estimated
                proceeds from
                borrowings&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="top" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="57">
              <div style="MARGIN: 0pt" align="right">2,600,000</div>
            </td>
            <td valign="top" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="404">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Estimated
                repayment of Lear debt </div>
            </td>
            <td valign="top" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="57" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(1,118,400</div>
            </td>
            <td valign="top" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="404">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Increase
                </div>
            </td>
            <td valign="top" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="57" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">1,481,600</div>
            </td>
            <td valign="top" width="4" style="border-bottom: #ccffcc 3pt double;">&#160;</td>
          </tr>

      </table>
    </div>
    <div style="MARGIN-TOP: 5pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: -12pt; TEXT-INDENT: -18pt">4d</div>
    <div style="PADDING-LEFT: 18pt; MARGIN: 0pt">To eliminate Lear&#8217;s historical
      stockholders&#8217; equity and to record $62.7 million of the purchase price of Lear
      stock allocated to the General Partner. </div>
    <div style="MARGIN-TOP: 5pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: -12pt; TEXT-INDENT: -18pt">4e</div>
    <div style="PADDING-LEFT: 18pt; MARGIN: 0pt">To record additional interest
      expense associated with the net increase in debt as per Note 4c above.</div>
    <div style="MARGIN-TOP: 5pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: -12pt; TEXT-INDENT: -18pt">4f</div>
    <div style="PADDING-LEFT: 18pt; MARGIN: 0pt">To eliminate the results of
      operations arising from the IAC North America Transaction and the IAC Europe
      Transaction.</div>
    <div style="MARGIN-TOP: 5pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: -12pt; TEXT-INDENT: -18pt">4g</div>
    <div style="PADDING-LEFT: 18pt; MARGIN: 0pt">To reflect Lear&#8217;s estimated equity
      loss of $0.4 million and $42.1 million for the three months ended March&#160;31,
      2007 and the year ended December&#160;31, 2006, respectively, related to its 25%
      ownership interest in IACNA and Lear&#8217;s estimated equity loss of $1.3 million for
      the year ended December&#160;31, 2006 related to its one-third equity interest
      in IAC Europe. These adjustments do not reflect purchase accounting adjustments
      to be made by IACNA and IAC Europe and do not reflect the operations of other
      businesses acquired by IAC Europe.</div>
    <div style="MARGIN-TOP: 5pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: -12pt; TEXT-INDENT: -18pt">4h</div>
    <div style="PADDING-LEFT: 18pt; MARGIN: 0pt">Primarily reflects the elimination
      of tax expense relating to the IAC North America Transaction for the three
      months ended March&#160;31, 2007, and the elimination of tax benefits relating
      to the IAC North America Transaction and the IAC Europe Transaction for the
      year
      ended December&#160;31, 2006.</div>
    <div style="MARGIN: 0pt" align="center"><br><br></div>
    <div style="MARGIN: 0pt" align="center">24</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt" align="center">
  <p align="left"><strong><a href="#toc">Back to Table of Contents</a></strong></p>
  <p></p>
  <strong>NOTES TO UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>5. PRO FORMA
      ADJUSTMENTS &#8211; DISPOSITION OF ACEP</strong></div>
    <div style="MARGIN-TOP: 5pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: -12pt; TEXT-INDENT: -18pt">5a</div>
    <div style="MARGIN-TOP: 0pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 5pt">To record
      the following adjustments to cash:</div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="299">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="40">
            </td>
            <td width="3">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="398">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="60">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center">(in
                000s)</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="398">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Estimated
                gross proceeds from sale of ACEP </div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="top" width="53">
              <div style="MARGIN: 0pt" align="right">1,300,000</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="398">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Add:
                net working capital </div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="top" width="53" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">50,335</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: white 0.5pt solid;">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="398">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Total
                proceeds</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="top" width="53">
              <div style="MARGIN: 0pt" align="right">1,350,335</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="398">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Repayment
                of long-term debt (including redemption
                fees)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="top" width="53" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(263,600</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: white 0.5pt solid;">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="398">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Net
                proceeds</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="top" width="53">
              <div style="MARGIN: 0pt" align="right">1,086,735</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="398">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Estimated
                transaction costs </div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="top" width="53">
              <div style="MARGIN: 0pt" align="right">(6,757</div>
            </td>
            <td valign="bottom" width="4" style="border-top: #ffffff 0.5pt solid;">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="398">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">ACEP&#8217;s
                cash balance included in net working capital </div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="top" width="53">
              <div style="MARGIN: 0pt" align="right">(70,528</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="398">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Stay
                bonuses </div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="top" width="53">
              <div style="MARGIN: 0pt" align="right">(5,000</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="398">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Total
                adjustments to cash </div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-top: #000000 0.5pt solid; border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="top" width="53" style="border-top: #000000 0.5pt solid; border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">1,004,450</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: #ccffcc 3pt double;">&#160;</td>
          </tr>

      </table>
    </div>
    <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: -12pt; TEXT-INDENT: -18pt">5b</div>
    <div style="PADDING-LEFT: 18pt; MARGIN: 0pt">Reflects the elimination of the
      March 31, 2007 carrying value of the assets and liabilities of ACEP.</div>
    <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: -12pt; TEXT-INDENT: -18pt">5c</div>
    <div style="PADDING-LEFT: 18pt; MARGIN: 0pt">Reflects the payment of ACEP&#8217;s
      long-term debt by AREP of $255 million.</div>
    <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: -12pt; TEXT-INDENT: -18pt">5d</div>
    <div style="PADDING-LEFT: 18pt; MARGIN: 0pt">Reflects the amount of the
      estimated net gain on the transaction, net of income taxes.</div>
    <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: -12pt; TEXT-INDENT: -18pt">5e</div>
    <div style="PADDING-LEFT: 18pt; MARGIN: 0pt">Reflects the reversal of revenues
      and expenses included in income from continuing operations attributable to
      the
      sale of ACEP, net of income taxes.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt"><br></div>
    <div style="MARGIN: 0pt" align="center"><br><br></div>
    <div style="MARGIN: 0pt" align="center">25</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">

<div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt" align="center">
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  <p></p>
  <strong><a name="5"></a>USE OF PROCEEDS</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      selling securityholders will receive all of the proceeds from the sale of the
      depositary units under this prospectus. We will not receive any proceeds from
      these sales.</div>

<div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong><a name="6"></a>DILUTION</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">None
      of
      the depositary units offered and sold pursuant to this prospectus are being
      sold
      by us. Therefore, there will be no dilution in the net tangible book value
      per
      depositary units as a result of the sale of the depositary units offered and
      sold pursuant to this prospectus.</div>
    <div style="MARGIN: 0pt" align="center"><br><br></div>
    <div style="MARGIN: 0pt" align="center">26</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">

<div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt" align="center">
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  <p></p>
  <strong><a name="7"></a>DESCRIPTION OF DEPOSITARY UNITS</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      following description of our depositary units does not purport to be complete
      and is qualified in its entirety by reference to applicable Delaware law, and
      to
      provisions of our partnership agreement, dated as of May 12, 1987, as amended,
      or our partnership agreement, and the depositary agreement, as amended, or
      the
      depositary agreement, entered into among us, the Registrar and Transfer Company,
      as depositary, or the depositary, and the unitholders.</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>General</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      depositary units represent limited partner interests in AREP. The percentage
      interest in AREP represented by a depositary unit is equal to the ratio it
      bears
      at the time of such determination to the total number of depositary units in
      AREP (including any undeposited depositary units) outstanding, multiplied by
      99%, which is the aggregate percentage interest in AREP of all holders of
      depositary units. Subject to the rights and preferences of preferred units,
      each
      depositary unit evidences entitlement to a portion of AREP&#8217;s distributions and
      an allocation of AREP&#8217;s net income and net loss, as determined in accordance
      with our partnership agreement. We are authorized to issue additional depositary
      units or other securities from time to time to unitholders or additional
      investors without the consent or approval of holders of depositary units, or
      unitholders. There is no limit to the number of depositary units or additional
      classes of units, including preferred units, which may be issued. The board
      of
      directors of our general partner has the power, without any further action
      by
      the unitholders, to issue units with such designations, preferences and
      relative, participating or other special rights, powers and duties, including
      rights, powers and duties senior to existing classes of depositary units or
      preferred units. The depositary units have no preemptive rights.</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>Transfer of Depositary
      Units</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Until
      a
      depositary unit has been transferred on the books of the depositary, we and
      the
      depositary will treat the record holder of the unit as the absolute owner for
      all purposes. A transfer of depositary units will not be recognized by the
      depositary or us unless and until the transferee of the depositary units, or
      a
      subsequent transferee, executes and delivers a transfer application to the
      depositary. Transfer applications appear on the back of each depositary receipt
      and also will be furnished at no charge by the depositary upon receipt of a
      request for it. By executing and delivering a transfer application to the
      depositary, a subsequent transferee automatically requests admission as a
      substituted unitholder in the partnership, agrees to be bound by the terms
      and
      conditions of our partnership agreement and grants a power of attorney to our
      general partner.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">On a
      monthly basis, the depositary will, on behalf of subsequent transferees who
      have
      submitted transfer applications, request the general partner to admit such
      subsequent transferees as substituted limited partners of AREP. If our general
      partner consents to such substitution, a subsequent transferee will be admitted
      to the partnership as a substituted limited partner upon the recordation of
      such
      subsequent transferee&#8217;s name in our books and records. Upon admission, which is
      in the sole discretion of our general partner, he will be entitled to all of
      the
      rights of a limited partner under the Delaware Revised Uniform Limited
      Partnership Act, or the Delaware Act, and pursuant to our partnership
      agreement.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">A
      subsequent transferee will, after submitting a transfer application to the
      depositary but before being admitted to AREP as a substituted unitholder of
      record, have the rights of an assignee under the Delaware Act and our
      partnership agreement, including the right to receive its pro rata share of
      distributions. A subsequent transferee who does not execute and deliver a
      transfer application to the depositary will not be recognized as the record
      holder of depositary units and will only have the right to transfer or assign
      its depositary units to a purchaser or other transferee. Therefore, such
      subsequent transferee will neither receive distributions from the partnership
      nor be entitled to vote on partnership matters or any other rights to which
      record holders of depositary units are entitled under the Delaware Act or
      pursuant to our partnership agreement. Distributions made in respect of the
      depositary units held by such subsequent transferees will continue to be paid
      to
      the transferor of such depositary units.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">A
      subsequent transferee will be deemed to be a party to the depositary agreement
      and to be bound by its terms and conditions whether or not such subsequent
      transferee executes and delivers a transfer application to the depositary.
      A
      transferor will have no duty to ensure the execution of a transfer application
      by a subsequent transferee and will have no liability or responsibility if
      such
      subsequent transferee neglects or chooses not to execute and deliver the
      transfer application to the depositary. Whenever depositary units are
      transferred, the transfer application requires that a subsequent transferee
      answer a series of questions. The required information is designed to provide
      us
      with the information necessary to prepare our tax information return.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">27</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
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  <p></p>
  <strong>Withdrawal of Depositary Units from Deposit</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">A
      unitholder may withdraw from the depositary the depositary units represented
      by
      its depositary receipts upon written request and surrender of the depositary
      receipts evidencing the depositary units in exchange for a certificate issued
      by
      us evidencing the same number of depositary units. A subsequent transferee
      is
      required to become a unitholder of record before being entitled to withdraw
      depositary units from the depositary. Depositary units which have been withdrawn
      from the depositary, and therefore are not evidenced by depositary receipts,
      are
      not transferable except upon death, by operation of law, by transfer to us
      or
      redeposit with the depositary. A holder of depositary units withdrawn from
      deposit will continue to receive its respective share of distributions and
      allocations of net income and losses pursuant to our partnership agreement.
      In
      order to transfer depositary units withdrawn from the depositary other than
      upon
      death, by operation of law or to the partnership, a unitholder must redeposit
      the certificate evidencing such withdrawn depositary units with the depositary
      and request issuance of depositary receipts representing such depositary units,
      which depositary receipts then may be transferred. Any redeposit of such
      withdrawn depositary units with the depositary requires 60 days&#8217; advance written
      notice and payment to the depositary of a redeposit fee initially $5.00 per
      100
      depositary units or portion thereof, and will be subject to the satisfaction
      of
      certain other procedural requirements under the depositary agreement.</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>Replacement of Lost
      Depositary Receipts and Certificates</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">A
      unitholder or subsequent transferee who loses or has its certificate for
      depositary units or depositary receipts stolen or destroyed may obtain a
      replacement certificate or depositary receipt by furnishing an indemnity bond
      and by satisfying certain other procedural requirements under the depositary
      agreement.</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>Amendment of
      Depositary Agreement</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Subject
      to the restrictions described below, any provision of the depositary agreement,
      including the form of depositary receipt, may, at any time and from time to
      time, be amended by the mutual agreement of us and the depositary in any respect
      deemed necessary or appropriate by them, without the approval of the holders
      of
      depositary units. No amendment to the depositary agreement, however, may impair
      the right of a holder of depositary units to surrender a depositary receipt
      and
      to withdraw any or all of the deposited depositary units evidenced by a
      depositary receipt or to redeposit depositary units pursuant to the depositary
      agreement and receive a depositary receipt evidencing redeposited depositary
      units.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      depositary will furnish notice to each record holder of a depositary unit,
      and
      to each securities exchange on which depositary units are listed for trading,
      of
      any material amendment made to the depositary agreement. Each record holder
      of a
      depositary unit at the time any amendment of the depositary agreement becomes
      effective will be deemed, by continuing to hold the depositary unit, to consent
      and agree to the amendment and to be bound by the depositary agreement, as
      so
      amended.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      depositary will give notice of the imposition of any fee or charge, other than
      fees and charges provided for in the depositary agreement, or change to the
      fees
      and charges, upon record holders of depositary units to any securities exchange
      on which the depositary units are listed for trading and to all record holders
      of depositary units. The imposition of any fee or charge, or change to them,
      will not be effective until the expiration of 30 days after the date of such
      notice, unless it becomes effective in the form of an amendment to the
      depositary agreement effected by us and the depositary.</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>Termination of
      Depositary Agreement</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">We may
      not terminate the depositary agreement unless the termination (1) is in
      connection with us entering into a similar agreement with a new depositary
      selected by the general partner, (2) is as a result of our receipt of an opinion
      of counsel to the effect that the termination is necessary for us to avoid
      being
      treated as an &#8220;association&#8221; taxable as a corporation for federal income tax
      purposes or to avoid being in violation of any applicable federal or state
      securities laws or (3) is in connection with our dissolution.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      depositary will terminate the depositary agreement, when directed to do so
      by
      us, by mailing notice of termination to the record holders of depositary units
      then outstanding at least 60 days before the date fixed for the termination
      in
      such notice. Termination will be effective on the date fixed in such notice,
      which date must be at least 60 days after it is mailed. Upon termination of
      the
      depositary agreement, the depositary will discontinue the transfer of depositary
      units, suspend the distribution of reports, notices and disbursements and cease
      to perform any other </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">28</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; PAGE-BREAK-BEFORE: always">
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  <p></p>
  acts under the depositary agreement, except in the event the depositary agreement
  is not being terminated in connection with us entering into a similar agreement
  with a new depositary, the depositary will assist in the facilitation of the
  withdrawal of depositary units by holders who desire to surrender their depositary
  receipts.</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>Resignation or Removal
      of Depositary</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      depositary may resign as depositary and may be removed by us at any time upon
      60
      days&#8217; written notice. The resignation or removal of the depositary becomes
      effective upon the appointment of a successor depositary by us and written
      acceptance by the successor depositary of its appointment. In the event a
      successor depositary is not appointed within 75 days of notification of such
      resignation or removal, the general partner will act as depositary until a
      successor depositary is appointed. Any corporation into or with which the
      depositary may be merged or consolidated will be the successor depositary
      without the execution or filing of any document or any further act.</div>
    <div style="MARGIN: 0pt" align="center"><br><br></div>
    <div style="MARGIN: 0pt" align="center">29</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">

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  <p></p>
  <strong><a name="8"></a>OUR PARTNERSHIP AGREEMENT AND CERTAIN<br>
  PROVISIONS OF DELAWARE LAW</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      rights of a limited partner of the partnership are set forth in our partnership
      agreement and the Delaware Act. The following is a summary of certain provisions
      of our partnership agreement and the agreement of limited partnership of AREH,
      or the AREH partnership agreement, which is similar to our partnership agreement
      in all material respects (except for the preferred units). The following summary
      discusses certain provisions which relate to both, and is qualified in its
      entirety by reference to both our partnership agreement and the AREH partnership
      agreement. A reference to the &#8220;partnership agreement&#8221; in this prospectus refers
      to both of our partnership agreement and the AREH partnership agreement, unless
      otherwise indicated.</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>Removal of the General
      Partner</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Subject
      to certain limitations on the exercise by unitholders of voting rights, the
      general partner may be removed by the written consent or affirmative vote of
      holders of depositary units owning more than 75% of the total number of all
      outstanding depositary units, voting as a class, then held by unitholders,
      including the general partner and its affiliates to the extent that they are
      holders of depositary units. Upon the removal of the general partner by holders
      of depositary units, the holders of depositary units will be obligated to elect
      a successor general partner and to continue the business of the partnership.
      At
      the election of the general partner, a successor general partner will be
      required, at the effective date of its admission as a general partner, to
      purchase API&#8217;s 1% general partner interest directly from API for a price equal
      to its &#8220;fair market value,&#8221; as described below.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">If API
      does not elect to sell its interest, the successor general partner will be
      required to contribute to the capital of AREP cash in an amount equal to 1/99th
      of the product of the number of depositary units outstanding immediately prior
      to the effective date of such successor general partner&#8217;s admission (but after
      giving effect to the conversion of API&#8217;s general partner interest into
      depositary units described below) and the average price at which the depositary
      units had been trading over the 20-day period immediately preceding the
      successor general partner&#8217;s admission. Thereafter, the successor general partner
      will be entitled to one percent (1%) of all partnership allocations and
      distributions.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">If API
      chooses not to sell its 1% general partner interest directly to a successor
      general partner, API&#8217;s general partner interest in AREP will be converted into
      depositary units, with the number of depositary units to be received to be
      based
      upon the &#8220;fair market value&#8221; of its general partner interest at the time of its
      removal and the average price at which the depositary units had been trading
      over the 20-day period preceding the effective date of API&#8217;s departure. In this
      regard, the &#8220;fair market value&#8221; of the departing general partner&#8217;s interest is
      the amount that would be distributable to API on account of the interest if
      AREP
      were to dispose of all of its assets in an orderly liquidation, commencing
      on
      the effective date of its removal at a price equal to the fair market value
      of
      those assets (discounted at the rate then payable on one-year U.S. Treasury
      obligations to the effective date of such removal to reflect the time reasonably
      anticipated to be necessary to consummate the sales), as agreed upon between
      API
      as the departing general partner and its successor, or, in the absence of an
      agreement, as determined by an independent appraiser.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Upon
      removal of API from the partnership, API also will be removed as general partner
      of AREH and its general partner interest in AREH will either be purchased by
      the
      successor general partner or converted into depositary units (in which case
      the
      successor shall also contribute to the capital of AREH) in the same manner
      as
      provided above with respect to the partnership.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      partnership agreement provides that, upon the departure of API and the
      conversion of its general partner interest in AREP to depositary units, AREP
      will, at the request of the departing general partner, file with the SEC up
      to
      three registration statements under the Securities Act registering the offering
      and sale of all or a portion of the depositary units owned by API, including
      those depositary units received upon conversion of its general partner interest
      in AREP and AREH. The cost of the first registrations will be borne by AREP
      and
      the cost of any other such registration will be borne by API.</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>Withdrawal of the
      General Partner</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      general partner may withdraw, but only if:</div>
    <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 36pt; MARGIN-BOTTOM: -12pt; TEXT-INDENT: -18pt">(1)</div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt">the withdrawal is with the consent
      of a majority interest;</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">30</div>

     <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
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  <p></p>
    <div style="PADDING-LEFT: 36pt; MARGIN-BOTTOM: -12pt; TEXT-INDENT: -18pt">
  (2)</div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt">API, with the consent of a majority
      interest, transfers all of its interest as general partner in the
      partnership;</div>
    <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 36pt; MARGIN-BOTTOM: -12pt; TEXT-INDENT: -18pt">(3)</div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt">the transferee consents to be bound
      by the partnership agreement and the transferee has the necessary legal
      authority to act as successor general partner of the partnership; and</div>
    <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 36pt; MARGIN-BOTTOM: -12pt; TEXT-INDENT: -18pt">(4)</div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt">AREP receives an opinion of counsel
      to the effect that a vote by the unitholders and the admission of a new general
      partner is in conformity with local law, will not cause the loss of limited
      liability to the unitholders and will not cause AREP to be treated as an
&#8220;association&#8221; taxable as a corporation for federal income tax purposes.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Notwithstanding
      the foregoing, API may, without the consent of the unitholders (to the extent
      permitted by law), transfer its interest as general partner in AREP to any
      person or entity that has, by merger, consolidation or otherwise, acquired
      all
      or substantially all of the assets or stock of API and continued its business,
      provided that such person or entity has a net worth no less than that of API
      and
      has accepted and agreed to be bound by the terms and conditions of the
      partnership agreement. The general partner also may mortgage, pledge,
      hypothecate or grant a security interest in its interest as general partner
      in
      AREP without the consent of unitholders.</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>Distributions</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      general partner has the power and authority to retain or use partnership assets
      or revenues as, in the sole and absolute discretion of the general partner,
      may
      be required to satisfy the anticipated present and future cash needs of the
      partnership, whether for operations, expansion, improvements, acquisitions
      or
      otherwise.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Subject
      to Section 17-607 of the Delaware Act and to the provision with respect to
      distributions upon liquidation or dissolution of the partnership, the general
      partner, in its sole and absolute discretion, may make such distribution from
      partnership assets or otherwise as it deems appropriate in its sole discretion,
      quarterly, annually or at any other time. Any distributions will be distributed
      to the general partner and the record holders in accordance with their
      respective percentage interests.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Distribution
      of proceeds on liquidation or dissolution of the partnership will be made:
      first, to the payment of any debts and liabilities of the partnership which
      are
      then due and payable; next, to the establishment of such reserves as the general
      partner deems reasonably necessary to provide for any future, contingent or
      unforeseen liabilities or obligations of the partnership; and next, pro rata
      in
      accordance with and to the extent of the positive balances in the general
      partner&#8217;s and record holders&#8217; respective capital accounts.</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>Allocations of Income
      and Loss</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Our
      partnership agreement provides, in general, that, after allocation to the
      holders of preferred units of an amount of income or gain equal to the 5%
      accrued distribution rate for the year, all items of income, gain, loss and
      deduction are allocated to API and to the holders of depositary units in
      accordance with their respective percentage ownership in the partnership. Items
      allocated to the holders of depositary units are further allocated among them
      pro rata in accordance with the respective number of depositary units owned
      by
      each of them. The partnership&#8217;s income gain, and loss and deduction, for federal
      income tax purposes, will be computed on an annual basis and apportioned equally
      among the calendar months among the general partner and record holders of
      depositary units in accordance with their percentage interests as of the close
      of business on the last day of the month in which taxable income or losses
      are
      apportioned. The partnership&#8217;s gains and losses from capital transactions
      generally will be allocated among the general partner and record holders of
      depositary units in proportion to their percentage interests as of the close
      of
      business on the last day of the month in which such gains and losses occurred.
      However, if gain from a capital transaction is recognized by the partnership
      over more than one calendar year, gain recognized by the partnership in years
      subsequent to the year in which the capital transaction occurred shall be
      allocated in the same manner as income of the partnership allocated.</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>Nevada Gaming Law
      Dispositions</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">If any
      Nevada gaming authority requires that a limited partner be licensed, qualified
      or found suitable under any applicable Nevada gaming law and the limited
      partner</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">31</div>
    <div style="MARGIN: 0pt"><br></div>
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<p align="left"><strong><a href="#toc">Back to Table of Contents</a></strong></p></div>
<div style="MARGIN-TOP: 5pt; PADDING-LEFT: 36pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: -10pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"><font style="FONT-FAMILY: Symbol">&#183;</font></div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt"><font style="FONT-FAMILY: Times New Roman">fails
      to apply for a license, qualification
      or a finding of suitability within 30 days, or such shorter period as may be
      required by the applicable Nevada gaming authority after being requested to
      do
      so by the Nevada gaming authority, or</font></div>
    <div style="MARGIN-TOP: 5pt; PADDING-LEFT: 36pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: -10pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"><font style="FONT-FAMILY: Symbol">&#183;</font></div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt"><font style="FONT-FAMILY: Times New Roman">is
      denied such license or qualification or
      not found suitable,</font></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt">then the general partner
      will have the right, exercisable in its sole and absolute discretion,</div>
    <div style="MARGIN-TOP: 5pt; PADDING-LEFT: 36pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: -10pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"><font style="FONT-FAMILY: Symbol">&#183;</font></div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt"><font style="FONT-FAMILY: Times New Roman">to
      require each the limited partner to
      dispose of its partnership interest within 30 days, or such earlier date as
      may
      be required by the applicable Nevada gaming authority, of the occurrence of
      the
      event described above, or</font></div>
    <div style="MARGIN-TOP: 5pt; PADDING-LEFT: 36pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: -10pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"><font style="FONT-FAMILY: Symbol">&#183;</font></div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt"><font style="FONT-FAMILY: Times New Roman">to
      redeem the partnership interest of the
      limited partner, on behalf of and for the account of the partnership, at a
      redemption price equal to lowest of</font></div>
    <div style="MARGIN-TOP: 5pt; PADDING-LEFT: 54pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: -10pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"><font style="FONT-FAMILY: Symbol">&#183;</font></div>
    <div style="PADDING-LEFT: 54pt; MARGIN: 0pt"><font style="FONT-FAMILY: Times New Roman">the
      market price for the partnership
      interest on the filing date, as defined, which, in the case of a depositary
      unit, will be the unit price;</font></div>
    <div style="MARGIN-TOP: 5pt; PADDING-LEFT: 54pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: -10pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"><font style="FONT-FAMILY: Symbol">&#183;</font></div>
    <div style="PADDING-LEFT: 54pt; MARGIN: 0pt"><font style="FONT-FAMILY: Times New Roman">the
      price at which such limited partner
      acquired the partnership interest; and</font></div>
    <div style="MARGIN-TOP: 5pt; PADDING-LEFT: 54pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: -10pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"><font style="FONT-FAMILY: Symbol">&#183;</font></div>
    <div style="PADDING-LEFT: 54pt; MARGIN: 0pt"><font style="FONT-FAMILY: Times New Roman">such
      other lesser amount as may be required
      by any Nevada gaming authority.</font></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Immediately
      upon a determination by a Nevada gaming authority that a limited partner will
      not be licensed, qualified or found suitable and must dispose of its partnership
      interest, the limited partner will, to the extent required by applicable Nevada
      gaming laws, have no further right to exercise, directly or indirectly, any
      rights to which limited partners or record holders are entitled under the
      Delaware Act or partnership agreement or to receive any distributions made
      by
      the partnership, except the redemption price.</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>New Jersey Gaming
      Law
      Dispositions</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Securities
      of
      the partnership are held subject to the condition that if a holder of any
      security is found to be disqualified by the New Jersey Casino Control Commission
      pursuant to the provisions of the New Jersey Casino Control Act, or the Casino
      Control Act, the holder will dispose of his interest in the partnership in
      accordance with the Casino Control Act. The partnership agreement is deemed
      to
      include all provisions required by the Casino Control Act and the regulations
      under it.</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>Amendment of the
      Partnership Agreement</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Amendments
      to
      the partnership agreement may be proposed by the general partner or by holders
      of depositary units owning at least 10% of the total number of depositary units
      outstanding then owned by all unitholders. Any proposed amendment (other than
      those described below) must be approved by the general partner in writing and,
      subject to limitations on the exercise by unitholders of voting rights, by
      at
      least a majority interest in order to be adopted. Unless approved by API in
      writing and, subject to limitations on the exercise by unitholders of voting
      rights, by all of the holders of depositary units, no amendment may be made
      to
      the partnership agreement if the amendment, in the opinion of counsel would
      result in the loss of the limited liability of unitholders or AREP as the sole
      limited partner of AREH or would cause AREP or AREH to be treated as an
      association taxable as a corporation for federal income tax purposes. In
      addition, no amendment to the partnership agreement may be made which
      would:</div>
    <div style="MARGIN-TOP: 5pt; PADDING-LEFT: 36pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: -10pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"><font style="FONT-FAMILY: Symbol">&#183;</font></div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt"><font style="FONT-FAMILY: Times New Roman">enlarge
      the obligations of the general
      partner or any unitholder or convert the interest of any unitholder into the
      interest of a general partner;</font></div>
    <div style="MARGIN-TOP: 5pt; PADDING-LEFT: 36pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: -10pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"><font style="FONT-FAMILY: Symbol">&#183;</font></div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt"><font style="FONT-FAMILY: Times New Roman">modify
      the expense reimbursement payable to
      the general partner and its affiliates pursuant to the partnership agreement
      or
      the fees and compensation payable to the general partner and its affiliates
      pursuant to the AREH partnership agreement;</font></div>
    <div style="MARGIN-TOP: 5pt; PADDING-LEFT: 36pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: -10pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"><font style="FONT-FAMILY: Symbol">&#183;</font></div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt"><font style="FONT-FAMILY: Times New Roman">modify
      the order and method for allocations
      of net income and net loss or distributions of net cash flow from operations
      without the consent of the general partner or the unitholders adversely
      affected; or</font></div>
    <div style="MARGIN-TOP: 5pt; PADDING-LEFT: 36pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: -10pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"><font style="FONT-FAMILY: Symbol">&#183;</font></div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt"><font style="FONT-FAMILY: Times New Roman">amend
      sections of the partnership agreement
      concerning amendments of the agreement without the consent of unitholders owning
      more than 95% of the total number of depositary units outstanding then held
      by
      all unitholders.</font></div>
    <div style="MARGIN-TOP: 5pt; MARGIN-BOTTOM: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">32</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
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  <p></p>
  Notwithstanding the foregoing, the general partner may make amendments to the
  partnership agreement without the consent of the unitholders, if such amendments
  are necessary or appropriate:</div>
    <div style="MARGIN-TOP: 5pt; PADDING-LEFT: 36pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: -10pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"><font style="FONT-FAMILY: Symbol">&#183;</font></div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt"><font style="FONT-FAMILY: Times New Roman">to
      reflect a change in the name or location
      of the principal office of the partnership;</font></div>
    <div style="MARGIN-TOP: 5pt; PADDING-LEFT: 36pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: -10pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"><font style="FONT-FAMILY: Symbol">&#183;</font></div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt"><font style="FONT-FAMILY: Times New Roman">to
      reflect the admission, substitution,
      termination, or withdrawal of unitholders in accordance with the partnership
      agreement;</font></div>
    <div style="MARGIN-TOP: 5pt; PADDING-LEFT: 36pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: -10pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"><font style="FONT-FAMILY: Symbol">&#183;</font></div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt"><font style="FONT-FAMILY: Times New Roman">to
      qualify AREP as a limited partnership or
      to ensure that AREP will not be treated as an association taxable as a
      corporation for federal income tax purposes;</font></div>
    <div style="MARGIN-TOP: 5pt; PADDING-LEFT: 36pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: -10pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"><font style="FONT-FAMILY: Symbol">&#183;</font></div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt"><font style="FONT-FAMILY: Times New Roman">in
      connection with or as a result of the
      general partner&#8217;s determination that AREP does not or no longer will qualify as
      a partnership for federal income tax purposes, including, without limitation,
      an
      amendment reflecting the reorganization of AREP into a qualified &#8220;real estate
      investment trust&#8221;;</font></div>
    <div style="MARGIN-TOP: 5pt; PADDING-LEFT: 36pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: -10pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"><font style="FONT-FAMILY: Symbol">&#183;</font></div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt"><font style="FONT-FAMILY: Times New Roman">to
      reflect a change that is of an
      inconsequential nature and does not adversely affect the unitholders in any
      material respect, or to cure any ambiguity, correct or supplement any provision
      in the partnership agreement not inconsistent with law or with other provisions,
      or make other changes with respect to matters arising under the partnership
      agreement that will not be inconsistent with law or with the provisions of
      the
      partnership agreement;</font></div>
    <div style="MARGIN-TOP: 5pt; PADDING-LEFT: 36pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: -10pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"><font style="FONT-FAMILY: Symbol">&#183;</font></div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt"><font style="FONT-FAMILY: Times New Roman">to
      satisfy any requirements, conditions, or
      guidelines contained in any order, directive, opinion, ruling or regulation
      of a
      federal or state agency or contained in federal or state law;</font></div>
    <div style="MARGIN-TOP: 5pt; PADDING-LEFT: 36pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: -10pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"><font style="FONT-FAMILY: Symbol">&#183;</font></div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt"><font style="FONT-FAMILY: Times New Roman">to
      facilitate the trading of the depositary
      units or comply with any requirement or guideline of any securities exchange
      on
      which the depositary units are or will be listed for trading;</font></div>
    <div style="MARGIN-TOP: 5pt; PADDING-LEFT: 36pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: -10pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"><font style="FONT-FAMILY: Symbol">&#183;</font></div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt"><font style="FONT-FAMILY: Times New Roman">to
      make any change required or contemplated
      by the partnership agreement;</font></div>
    <div style="MARGIN-TOP: 5pt; PADDING-LEFT: 36pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: -10pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"><font style="FONT-FAMILY: Symbol">&#183;</font></div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt"><font style="FONT-FAMILY: Times New Roman">to
      amend any provisions requiring any
      action by the general partner if applicable provisions of the Delaware Act
      related to AREP or AREH are amended or changed so that such action is no longer
      necessary; or</font></div>
    <div style="MARGIN-TOP: 5pt; PADDING-LEFT: 36pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: -10pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"><font style="FONT-FAMILY: Symbol">&#183;</font></div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt"><font style="FONT-FAMILY: Times New Roman">to
      authorize AREP to issue units (or other
      securities) in one or more additional classes, or one or more series of classes,
      with any designations, preferences and relative, participating, optional or
      other special rights, powers and duties, including rights, powers and duties
      senior to existing classes of depositary units or preferred units, as shall
      be
      fixed by the general partner.</font></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>Issuance of Additional
      Securities</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      partnership is authorized to issue additional depositary units or other
      securities from time to time to unitholders or additional investors without
      the
      consent or approval of unitholders. There is no limit to the number of
      depositary units or additional classes that may be issued. The board of
      directors of the general partner has the power, without any further action
      by
      the unitholders, to issue securities with such designations, preferences and
      relative, participating or other special rights, powers and duties, including
      rights, powers and duties senior to existing classes of depositary units or
      preferred units.</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>Meetings; Voting
      Rights of Unitholders</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Any
      action that is required or permitted to be taken by unitholders may be taken
      either at a meeting of the holders of depositary units or without a meeting
      if
      consents in writing setting forth the action so taken are signed by holders
      of
      depositary units owning not less than the minimum number of depositary units
      or
      preferred units that would be necessary to authorize or take such action at
      a
      meeting. Meetings of the holders of depositary units may be called by the
      general partner or by unitholders owning at least 10% of the total depositary
      units outstanding then owned by all such unitholders. Holders of depositary
      units may vote either in person or by proxy at meetings.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Matters
      submitted to the unitholders for their consent will be determined by the
      affirmative vote, in person or by proxy, of a majority interest, except that
      a
      higher vote will be required for certain amendments described above, the removal
      of the general partner and the continuation of AREP after certain events that
      would otherwise cause dissolution.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Each
      unitholder will have one vote for each depositary unit as to which the
      unitholder has been admitted as a unitholder. A subsequent transferee of
      depositary units who has not been admitted as a unitholder of record with </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">33</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
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  <p></p>
  respect to the depositary units will have no voting rights with respect to the
  depositary units, even if such subsequent transferee holds other depositary
  units as to which it has been admitted as a unitholder. The voting rights of
  a unitholder who transfers a depositary unit will terminate with respect to
  that depositary unit upon its transfer, whether or not the subsequent transferee
  is admitted as a unitholder of record with respect thereto. The partnership
  agreement does not provide for annual meetings of the unitholders.</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>Restriction on
      Short-Form Mergers</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Neither
      the general partner nor its affiliates will cause the partnership (in the event
      that the Delaware Act is amended to permit partnerships to engage in short-form
      merger transactions), or any successor entity of the partnership, whether in
      its
      current form as a limited partnership or as converted to or succeeded by a
      corporation or other form of business association, to effect a merger or other
      business combination (in the event that such short-form merger statute applies
      to other business combinations) of the partnership or such successor, in each
      case pursuant to Section 253 of the General Corporation Law of Delaware, or
      any
      successor statute, or any similar short-form merger statute under the laws
      of
      Delaware or any other jurisdiction. This provision does not apply to any other
      merger or business combination transaction. In addition, no amendment to this
      provision is permitted without a unanimous vote of the record holders, unless
      the amendment has been approved by the audit committee, in which event only
      a
      majority interest, as defined, is required for approval of the amendment.</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>Liability of General
      Partner and Unitholders</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      general partner will be liable for all general obligations of the partnership
      to
      the extent not paid by the partnership. The general partner will not, however,
      be liable for the nonrecourse obligations of the partnership. Assuming that
      a
      unitholder does not take part in the control of the business of AREP and
      otherwise acts in conformity with the provisions of the partnership agreement,
      the liability of the unitholder will, under the Delaware Act, be limited,
      subject to certain possible exceptions, generally to the amount contributed
      by
      the unitholder or the unitholder&#8217;s predecessor in interest to the capital of the
      partnership, plus the unitholder&#8217;s share of any undistributed partnership
      income, profits or property. However, under the Delaware Act, a unitholder
      who
      receives a distribution from AREP that is made in violation of the Delaware
      Act
      and who knew at the time of the distribution that the distribution was improper,
      is liable to AREP for the amount of the distribution. Such liability or
      liability under other applicable Delaware law (such as the law of fraudulent
      conveyances) ceases after expiration of three years from the date of the
      applicable distribution.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Under
      the
      Delaware Act, a partnership is prohibited from making a distribution to a
      partner to the extent that at the time of the distribution, after giving effect
      to the distribution, all liabilities of the partnership, other than liabilities
      to partners on account of their partnership interests and liabilities for which
      the recourse of creditors is limited to specified property of the partnership,
      exceed the fair value of the assets of the partnership (except that fair value
      of property that is subject to a liability for which the recourse of creditors
      is limited is included in the assets of the partnership only to the extent
      that
      the fair value of the property exceeds that liability). An assignee of a limited
      partner who becomes a substituted limited partner does not, under the Delaware
      Act, become liable for any obligation of the assignor to restore prior
      distributions.</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>Books and
      Reports</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      general partner is required to keep complete and accurate books with respect
      to
      the partnership&#8217;s business at the principal office of the partnership. The books
      are maintained for financial accounting purposes on the accrual basis, in
      accordance with generally accepted accounting principles. The fiscal year of
      AREP is the calendar year.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Unitholders
      will be entitled to have access to AREP books and certain other records at
      reasonable times upon reasonable notice to the general partner, subject to
      certain limitations including those intended to protect confidential business
      information.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      general partner will furnish to each unitholder, within 120 days after the
      close
      of each fiscal year, reports containing certain financial statements of AREP
      for
      the fiscal year, including a balance sheet and statements of income,
      unitholders&#8217; equity and changes in financial position, which will be audited by
      a nationally recognized firm of independent certified public accountants. Within
      90 days after the close of each taxable year, AREP will use its best efforts
      to
      furnish to each unitholder as of the last day of any month during such taxable
      year such information as may be required by the unitholders for the preparation
      of their individual federal, state and local tax returns. This </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">34</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; PAGE-BREAK-BEFORE: always">
  <p align="left"><strong><a href="#toc">Back to Table of Contents</a></strong></p>
  <p></p>
  information will be furnished in summary form so that certain complex calculations
  normally required can be avoided. The partnership&#8217;s ability to furnish
  such summary information may depend on the cooperation of unitholders in supplying
  certain information to the partnership.</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>Power of
      Attorney</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Pursuant
      to the AREP partnership agreement, each unitholder of record appoints API and
      each of API&#8217;s authorized officers as the unitholder&#8217;s or substituted
      unitholder&#8217;s attorney-in-fact:</div>
    <div style="MARGIN-TOP: 3.35pt; PADDING-LEFT: 36pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: -10pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"><font style="FONT-FAMILY: Symbol">&#183;</font></div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt"><font style="FONT-FAMILY: Times New Roman">to
      enter into the depositary agreement and
      deposit the depositary units of the unitholder or substituted unitholder in
      the
      deposit account established by the depositary and admit the holders of
      depositary units and preferred units as limited partners in AREP,
      and</font></div>
    <div style="MARGIN-TOP: 3.35pt; PADDING-LEFT: 36pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: -10pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"><font style="FONT-FAMILY: Symbol">&#183;</font></div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt"><font style="FONT-FAMILY: Times New Roman">to
      make, execute, file and/or
      record</font></div>
    <div style="MARGIN-TOP: 3.35pt; PADDING-LEFT: 54pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: -10pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"><font style="FONT-FAMILY: Symbol">&#183;</font></div>
    <div style="PADDING-LEFT: 54pt; MARGIN: 0pt"><font style="FONT-FAMILY: Times New Roman">instruments
      with respect to any amendment
      of the partnership agreement;</font></div>
    <div style="MARGIN-TOP: 3.35pt; PADDING-LEFT: 54pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: -10pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"><font style="FONT-FAMILY: Symbol">&#183;</font></div>
    <div style="PADDING-LEFT: 54pt; MARGIN: 0pt"><font style="FONT-FAMILY: Times New Roman">conveyances
      and other instruments and
      documents with respect to the dissolution, termination and liquidation of AREP
      pursuant to the terms of the partnership agreement;</font></div>
    <div style="MARGIN-TOP: 3.35pt; PADDING-LEFT: 54pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: -10pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"><font style="FONT-FAMILY: Symbol">&#183;</font></div>
    <div style="PADDING-LEFT: 54pt; MARGIN: 0pt"><font style="FONT-FAMILY: Times New Roman">financing
      statements or other documents
      necessary to grant or perfect a security interest, mortgage, pledge or lien
      on
      all or any of the assets of the partnership;</font></div>
    <div style="MARGIN-TOP: 3.35pt; PADDING-LEFT: 54pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: -10pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"><font style="FONT-FAMILY: Symbol">&#183;</font></div>
    <div style="PADDING-LEFT: 54pt; MARGIN: 0pt"><font style="FONT-FAMILY: Times New Roman">instruments
      or papers required to continue
      the business of AREP pursuant to the partnership agreement</font></div>
    <div style="MARGIN-TOP: 3.35pt; PADDING-LEFT: 54pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: -10pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"><font style="FONT-FAMILY: Symbol">&#183;</font></div>
    <div style="PADDING-LEFT: 54pt; MARGIN: 0pt"><font style="FONT-FAMILY: Times New Roman">instruments
      relating to the admission of
      substituted limited partners in the partnership; and</font></div>
    <div style="MARGIN-TOP: 3.35pt; PADDING-LEFT: 54pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: -10pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"><font style="FONT-FAMILY: Symbol">&#183;</font></div>
    <div style="PADDING-LEFT: 54pt; MARGIN: 0pt"><font style="FONT-FAMILY: Times New Roman">all
      other instruments deemed necessary or
      appropriate to carry out the provisions of the partnership
      agreement.</font></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The power
      of attorney is irrevocable, will survive the subsequent death, incompetency,
      dissolution, disability, incapacity, bankruptcy or termination of the granting
      unitholder, and will extend to such unitholder&#8217;s heirs, successors and
      assigns.</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>Death, Bankruptcy
      or
      Incompetency of a Unitholder</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      death, bankruptcy or adjudication of incompetency of a unitholder will not
      dissolve the partnership. In such event, the legal representatives of the
      unitholder will have all the rights of a unitholder for the purpose of settling
      or managing the estate and such power as the deceased, bankruptcy or incompetent
      unitholder possessed to assess, sell or transfer any part of his interest.
      The
      transfer of depositary units and preferred units by the legal representative
      to
      any person or entity is subject to all of the restrictions to which such
      transfer would have been subject if it had been made by the deceased, bankrupt
      or incompetent unitholder.</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>Termination,
      Dissolution and Liquidation</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      partnership will continue until December 31, 2085, unless sooner dissolved
      or
      terminated and its assets liquidated upon the occurrence of the earliest
      of:</div>
    <div style="MARGIN-TOP: 3.35pt; PADDING-LEFT: 36pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: -10pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"><font style="FONT-FAMILY: Symbol">&#183;</font></div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt"><font style="FONT-FAMILY: Times New Roman">the
      withdrawal, removal or bankruptcy of
      the general partner (subject to the right of the unitholders to reconstitute
      and
      continue the business of AREP by written agreement of a majority interest and
      designation by them of a successor general partner within 90 days);</font></div>
    <div style="MARGIN-TOP: 3.35pt; PADDING-LEFT: 36pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: -10pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"><font style="FONT-FAMILY: Symbol">&#183;</font></div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt"><font style="FONT-FAMILY: Times New Roman">the
      written consent or affirmative vote of
      a majority interest, with the approval of the general partner, to dissolve
      and
      terminate the partnership;</font></div>
    <div style="MARGIN-TOP: 3.35pt; PADDING-LEFT: 36pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: -10pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"><font style="FONT-FAMILY: Symbol">&#183;</font></div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt"><font style="FONT-FAMILY: Times New Roman">the
      sale or other disposition of all or
      substantially all of the assets of the partnership;</font></div>
    <div style="MARGIN-TOP: 3.35pt; PADDING-LEFT: 36pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: -10pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"><font style="FONT-FAMILY: Symbol">&#183;</font></div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt"><font style="FONT-FAMILY: Times New Roman">the
      partnership&#8217;s insolvency or bankruptcy;
      or</font></div>
    <div style="MARGIN-TOP: 3.35pt; PADDING-LEFT: 36pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: -10pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"><font style="FONT-FAMILY: Symbol">&#183;</font></div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt"><font style="FONT-FAMILY: Times New Roman">any
      other event causing or requiring
      dissolution under the Delaware Act.</font></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      unitholders&#8217; right to continue AREP described above is subject to the receipt of
      an opinion of counsel to the effect that the continuation and the selection
      of a
      successor general partner will not result in the loss of limited liability
      of
      the unitholders and will not cause AREP to be treated as an association taxable
      as a corporation for federal income tax purposes. Upon dissolution, the general
      partner or other entity or person authorized to wind up the affairs of AREP
      will
      proceed to liquidate the assets of AREP and apply the proceeds of liquidation
      in
      the order of priority set forth in the partnership agreement.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">35</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">

<div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt; PAGE-BREAK-BEFORE: always" align="center">
  <p align="left"><strong><a href="#toc">Back to Table of Contents</a></strong></p>
  <p></p>
  <strong><a name="9"></a>SELLING SECURITYHOLDERS</strong></div>
    <div style="MARGIN-TOP: 4.15pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">&#160;The
      depositary units being offered by the selling securityholders are issuable
      upon
      conversion of the convertible notes. We are registering the depositary units
      in
      order to permit the selling securityholders to offer the depositary units for
      resale from time to time. Except for the ownership of the convertible notes
      issued pursuant to the Indenture, dated as of April 5, 2007, by and among AREP,
      AREP Finance, AREH, as guarantor, and Wilmington Trust Company, as Trustee,
      the
      selling securityholders have not had any material relationship with us within
      the past three years.</div>
    <div style="MARGIN-TOP: 4.15pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The table
      below lists the selling securityholders and other information regarding the
      beneficial ownership of the depositary units by each of the selling
      securityholders. The second column lists the number of depositary units
      beneficially owned by each selling securityholder, based on its ownership of
      the
      convertible notes, as of June 1, 2007, assuming conversion of all convertible
      notes held by the selling securityholders on that date, without regard to any
      limitations on conversions.</div>
    <div style="MARGIN-TOP: 4.15pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The third
      column lists the depositary units being offered by this prospectus by each
      selling securityholder.</div>
    <div style="MARGIN-TOP: 4.15pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">In
      accordance with the terms of a registration rights agreement by and among the
      AREP, Portside Growth and Opportunity Fund, or Portside, and Highbridge
      International LLC, or Highbridge, this prospectus generally covers the resale
      of
      the depositary units issued or issuable upon conversion of the convertible
      notes
      as of the trading day immediately preceding the date the Registration Statement
      is initially filed with the SEC. Because the conversion price of the convertible
      notes may be adjusted, the number of depositary units that will actually be
      issued may be more or less than the number of depositary units being offered
      by
      this prospectus. The fourth column assumes the sale of all of the depositary
      units offered by the selling securityholders pursuant to this prospectus.</div>
    <div style="MARGIN-TOP: 4.15pt; MARGIN-BOTTOM: 6.65pt; TEXT-INDENT: 18pt">The
      selling securityholders may sell all, some or none of their depositary units
      in
      this offering. See &#8220;Plan of Distribution.&#8221;</div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="224">
            </td>
            <td width="13">
            </td>
            <td width="63">
            </td>
            <td width="13">
            </td>
            <td width="74">
            </td>
            <td width="13">
            </td>
            <td width="63">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="299" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt"><strong>Name
                of Selling Securityholder</strong></div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="85" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Number
                of<br>Depositary Units<br>Owned Prior
                to<br>Offering</strong></div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="99" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Maximum
                Number<br>of Depositary Units<br>to be Sold
                Pursuant<br>to this Prospectus</strong></div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="85" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Number
                of<br>Depositary Units<br>Owned After
                <br>Offering</strong></div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="299">&#160;</td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="85">&#160;</td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="99">&#160;</td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="85">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="299">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Portside
                Growth &amp; Opportunity Fund(1)</div>
            </td>
            <td valign="top" width="18">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="85">
              <div style="MARGIN: 0pt" align="right">4,977</div>
            </td>
            <td valign="top" width="18">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="99">
              <div style="MARGIN: 0pt" align="right">4,977</div>
            </td>
            <td valign="top" width="18">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="85">
              <div style="MARGIN: 0pt" align="right">0</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="299">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Ramius
                Capital Group, LLC</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="85">
              <div style="MARGIN: 0pt" align="right">284</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="99">
              <div style="MARGIN: 0pt" align="right">284</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="85">
              <div style="MARGIN: 0pt" align="right">0</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="299">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Highbridge
                International LLC(2)</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="85">
              <div style="MARGIN: 0pt" align="right">937,064</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="99">
              <div style="MARGIN: 0pt" align="right">937,064</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="85">
              <div style="MARGIN: 0pt" align="right">0</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="299">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Highbridge
                Convertible Arbitrage Master<br>Fund, L.P.(3)</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="85">
              <div style="MARGIN: 0pt" align="right">62,220</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="99">
              <div style="MARGIN: 0pt" align="right">62,220</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="85">
              <div style="MARGIN: 0pt" align="right">0</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="299">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Linden
                Capital LP</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="85">
              <div style="MARGIN: 0pt" align="right">226,253</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="99">
              <div style="MARGIN: 0pt" align="right">226,253</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="85">
              <div style="MARGIN: 0pt" align="right">0</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="299">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Lyxor/Context
                Fund Ltd.</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="85">
              <div style="MARGIN: 0pt" align="right">6,938</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="99">
              <div style="MARGIN: 0pt" align="right">6,938</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="85">
              <div style="MARGIN: 0pt" align="right">0</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="299">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">AHFP
                Context</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="85">
              <div style="MARGIN: 0pt" align="right">2,187</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="99">
              <div style="MARGIN: 0pt" align="right">2,187</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="85">
              <div style="MARGIN: 0pt" align="right">0</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="299">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Finch
                Tactical Plus Class B</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="85">
              <div style="MARGIN: 0pt" align="right">1,282</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="99">
              <div style="MARGIN: 0pt" align="right">1,282</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="85">
              <div style="MARGIN: 0pt" align="right">0</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="299">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Worldwide
                Transactions Limited</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="85">
              <div style="MARGIN: 0pt" align="right">1,735</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="99">
              <div style="MARGIN: 0pt" align="right">1,735</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="85">
              <div style="MARGIN: 0pt" align="right">0</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="299">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Altma
                Fund SICAV Plc in Repsect of the<br>Grafton Sub Fund</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="85">
              <div style="MARGIN: 0pt" align="right">8,296</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="99">
              <div style="MARGIN: 0pt" align="right">8,296</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="85">
              <div style="MARGIN: 0pt" align="right">0</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="299">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Casam
                Context Offshore Advantage Fund Limited</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="85">
              <div style="MARGIN: 0pt" align="right">3,922</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="99">
              <div style="MARGIN: 0pt" align="right">3,922</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="85">
              <div style="MARGIN: 0pt" align="right">0</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="299">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Institutional
                Benchmarks Series (Master Feeder)<br>Limited in Respect of Alcor
                Series</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="85">
              <div style="MARGIN: 0pt" align="right">1,282</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="99">
              <div style="MARGIN: 0pt" align="right">1,282</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="85">
              <div style="MARGIN: 0pt" align="right">0</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="299">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Context
                Advantage Master Fund, L.P.</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="85">
              <div style="MARGIN: 0pt" align="right">30,921</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="99">
              <div style="MARGIN: 0pt" align="right">30,921</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="85">
              <div style="MARGIN: 0pt" align="right">0</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="299">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">SGAM
                A.I. Boreal</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="85">
              <div style="MARGIN: 0pt" align="right">22,626</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="99">
              <div style="MARGIN: 0pt" align="right">22,626</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="85">
              <div style="MARGIN: 0pt" align="right">0</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="299">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Altma
                Fund SICAV in respect of Trinity<br>Sub-Fund</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="85">
              <div style="MARGIN: 0pt" align="right">27,995</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="99">
              <div style="MARGIN: 0pt" align="right">27,995</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="85">
              <div style="MARGIN: 0pt" align="right">0</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="299">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">AM
                Master Fund I, L.P.</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="85">
              <div style="MARGIN: 0pt" align="right">89,091</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="99">
              <div style="MARGIN: 0pt" align="right">89,091</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="85">
              <div style="MARGIN: 0pt" align="right">0</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="299">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Lyxor/AM
                Investment Fund Ltd.</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="85">
              <div style="MARGIN: 0pt" align="right">15,272</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="99">
              <div style="MARGIN: 0pt" align="right">15,272</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="85">
              <div style="MARGIN: 0pt" align="right">0</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="299">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">AM
                International E Mac 63 Ltd.</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="85">
              <div style="MARGIN: 0pt" align="right">71,270</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="99">
              <div style="MARGIN: 0pt" align="right">71,270</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="85">
              <div style="MARGIN: 0pt" align="right">0</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="299">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Lehman
                Brothers Inc.</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="85">
              <div style="MARGIN: 0pt" align="right">150,835</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="99">
              <div style="MARGIN: 0pt" align="right">150,835</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="85">
              <div style="MARGIN: 0pt" align="right">0</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="299">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Xavex
                Convertible Arbitrage 10 Fund</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="85">
              <div style="MARGIN: 0pt" align="right">23,530</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="99">
              <div style="MARGIN: 0pt" align="right">23,530</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="85">
              <div style="MARGIN: 0pt" align="right">0</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="299">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Xavex
                Convertible Arbitrage 2 Fund</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="85">
              <div style="MARGIN: 0pt" align="right">3,545</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="99">
              <div style="MARGIN: 0pt" align="right">3,545</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="85">
              <div style="MARGIN: 0pt" align="right">0</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="299">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">CNH
                CA Master Account, L.P.</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="85">
              <div style="MARGIN: 0pt" align="right">75,418</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="99">
              <div style="MARGIN: 0pt" align="right">75,418</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="85">
              <div style="MARGIN: 0pt" align="right">0</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="299">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Argent
                LowLev Convertible Arbitrage<br>Fund II, LLC</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="85">
              <div style="MARGIN: 0pt" align="right">453</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="99">
              <div style="MARGIN: 0pt" align="right">453</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="85">
              <div style="MARGIN: 0pt" align="right">0</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="MARGIN-TOP: 3.35pt; MARGIN-BOTTOM: 5.35pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">36</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="MARGIN-TOP: 3.35pt; MARGIN-BOTTOM: 5.35pt; PAGE-BREAK-BEFORE: always">
  <p align="left"><strong><a href="#toc">Back to Table of Contents</a></strong></p>
  <p></p>
    </div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="224">
            </td>
            <td width="13">
            </td>
            <td width="63">
            </td>
            <td width="13">
            </td>
            <td width="74">
            </td>
            <td width="13">
            </td>
            <td width="63">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="299" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt"><strong>Name
                of Selling Securityholder</strong></div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="85" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Number
                of<br>Depositary Units<br>Owned Prior
                to<br>Offering</strong></div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="99" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Maximum
                Number<br>of Depositary Units<br>to be Sold
                Pursuant<br>to this Prospectus</strong></div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="85" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Number
                of<br>Depositary Units<br>Owned After
                <br>Offering</strong></div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="299">&#160;</td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="85">&#160;</td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="99">&#160;</td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="85">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="299">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Argent
                Classic Convertible Arbitrage<br>Fund, L.P.</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="85">
              <div style="MARGIN: 0pt" align="right">36,200</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="99">
              <div style="MARGIN: 0pt" align="right">36,200</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="85">
              <div style="MARGIN: 0pt" align="right">0</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="299">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Argent
                Classic Convertible Arbitrage<br>Fund II, L.P</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="85">
              <div style="MARGIN: 0pt" align="right">8,598</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="99">
              <div style="MARGIN: 0pt" align="right">8,598</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="85">
              <div style="MARGIN: 0pt" align="right">0</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="299">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Lyxor
                Master Fund </div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="85">
              <div style="MARGIN: 0pt" align="right">6,184</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="99">
              <div style="MARGIN: 0pt" align="right">6,184</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="85">
              <div style="MARGIN: 0pt" align="right">0</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="299">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Partners
                Group Alternative Strategies<br>PCC Ltd.</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="85">
              <div style="MARGIN: 0pt" align="right">12,067</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="99">
              <div style="MARGIN: 0pt" align="right">12,067</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="85">
              <div style="MARGIN: 0pt" align="right">0</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="299">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">HFR
                CA Global Select Master Trust<br>Account</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="85">
              <div style="MARGIN: 0pt" align="right">3,545</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="99">
              <div style="MARGIN: 0pt" align="right">3,545</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="85">
              <div style="MARGIN: 0pt" align="right">0</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="299">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Class
                C Trading Company, Ltd.</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="85">
              <div style="MARGIN: 0pt" align="right">18,779</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="99">
              <div style="MARGIN: 0pt" align="right">18,779</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="85">
              <div style="MARGIN: 0pt" align="right">0</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="299">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">DBAG
                London</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="85">
              <div style="MARGIN: 0pt" align="right">88,616</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="99">
              <div style="MARGIN: 0pt" align="right">88,616</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="85">
              <div style="MARGIN: 0pt" align="right">0</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="299">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">RCG
                PB, Ltd.</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="85">
              <div style="MARGIN: 0pt" align="right">683</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="99">
              <div style="MARGIN: 0pt" align="right">683</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="85">
              <div style="MARGIN: 0pt" align="right">0</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="299">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Bank
                Austria Special Situation</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="85">
              <div style="MARGIN: 0pt" align="right">398</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="99">
              <div style="MARGIN: 0pt" align="right">398</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="85">
              <div style="MARGIN: 0pt" align="right">0</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="299">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">RCG
                Baldwin, L.P.</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="85">
              <div style="MARGIN: 0pt" align="right">171</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="99">
              <div style="MARGIN: 0pt" align="right">171</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="85">
              <div style="MARGIN: 0pt" align="right">0</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="299">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">RCG
                Latitude Master Fund, Ltd.</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="85">
              <div style="MARGIN: 0pt" align="right">1,024</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="99">
              <div style="MARGIN: 0pt" align="right">1,024</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="85">
              <div style="MARGIN: 0pt" align="right">0</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="299">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Credit
                Suisse Securities Europe Ltd.</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="85">
              <div style="MARGIN: 0pt" align="right">94,272</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="99">
              <div style="MARGIN: 0pt" align="right">94,272</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="85">
              <div style="MARGIN: 0pt" align="right">0</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="299">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">PBGC
                Maintenance</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="85">
              <div style="MARGIN: 0pt" align="right">1,855</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="99">
              <div style="MARGIN: 0pt" align="right">1,855</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="85">
              <div style="MARGIN: 0pt" align="right">0</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="299">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Redbourn
                Partners Ltd.</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="85">
              <div style="MARGIN: 0pt" align="right">37,709</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="99">
              <div style="MARGIN: 0pt" align="right">37,709</div>
            </td>
            <td valign="top" width="18">&#160;</td>
            <td valign="bottom" width="85">
              <div style="MARGIN: 0pt" align="right">0</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="FONT-SIZE: 11pt; MARGIN: 0pt; LINE-HEIGHT: 8pt">&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;</div>
    <div style="MARGIN-TOP: 0pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: -12pt; TEXT-INDENT: -18pt">(1)</div>
    <div style="MARGIN-TOP: 0pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 2.5pt">&#160;Ramius
      Capital Group, LLC, or Ramius Capital, is the investment adviser of Portside,
      and consequently has voting control and investment discretion over securities
      held by Portside. Ramius Capital disclaims beneficial ownership of the units
      held by Portside. Peter A. Cohen, Morgan B. Stark, Thomas W. Strauss and Jeffrey
      M. Solomon are the sole managing members of C4S&amp; Co., LLC, the sole managing
      member of Ramius Capital. As a result, Messrs. Cohen, Stark, Strauss and Solomon
      may be considered beneficial owners of any units deemed to be beneficially
      owned
      by Ramius Capital. Messrs. Cohen, Stark, Strauss and Solomon disclaim beneficial
      ownership of these units. </div>
    <div style="MARGIN-TOP: 0pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: -12pt; TEXT-INDENT: -18pt">(2)</div>
    <div style="MARGIN-TOP: 0pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 2.5pt">&#160;Highbridge
      Capital Management, LLC, or Highbridge Capital, is the trading manager of
      Highbridge and has voting control and investment discretion over the securities
      held by Highbridge. Glenn Dubin and Henry Swieca control Highbridge Capital
      and
      have voting control and investment discretion over the securities held by
      Highbridge. Each of Highbridge Capital, Glenn Dubin and Henry Swieca disclaims
      beneficial ownership of the securities held by Highbridge.</div>
    <div style="MARGIN-TOP: 0pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: -12pt; TEXT-INDENT: -18pt">(3)</div>
    <div style="MARGIN-TOP: 0pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 2.5pt">&#160;Highbridge
      Capital is the trading manager of Highbridge Convertible Arbitrage Master Fund,
      L.P., or Highbridge Master Fund, and has voting control and investment
      discretion over the securities held by Highbridge Master Fund. Glenn Dubin
      and
      Henry Swieca control Highbridge Capital and have voting control and investment
      discretion over the securities held by Highbridge Master Fund. Each of
      Highbridge Capital, Glenn Dubin and Henry Swieca disclaims beneficial ownership
      of the securities held by Highbridge Master Fund.</div>
    <div style="MARGIN: 0pt" align="center"><br><br></div>
    <div style="MARGIN: 0pt" align="center">37</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">

<div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt" align="center">
  <p align="left"><strong><a href="#toc">Back to Table of Contents</a></strong></p>
  <p></p>
  <strong><a name="10"></a>PLAN OF DISTRIBUTION</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">We are
      registering the depositary units issuable upon conversion of the convertible
      notes to permit the resale of these depositary units by the holders of the
      convertible notes from time to time after the date of this prospectus. We will
      not receive any of the proceeds from the sale by the selling securityholders
      of
      the depositary units. We will bear all fees and expenses incident to our
      obligation to register the depositary units.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 11pt">The
      selling securityholders may sell all or a portion of the depositary units
      beneficially owned by them and offered hereby from time to time directly or
      through one or more underwriters, broker-dealers or agents. If the depositary
      units are sold through underwriters or broker-dealers, the selling
      securityholders will be responsible for underwriting discounts or commissions
      or
      agent&#8217;s commissions. The depositary units may be sold in one or more
      transactions at fixed prices, at prevailing market prices at the time of the
      sale, at varying prices determined at the time of sale or at negotiated prices.
      These sales may be affected in transactions, which may involve crosses or block
      transactions:</div>
    <div style="MARGIN-TOP: 5pt; PADDING-LEFT: 36pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: -10pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"><font style="FONT-FAMILY: Symbol">&#183;</font></div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt"><font style="FONT-FAMILY: Times New Roman">on
      any national securities exchange or
      quotation service on which the securities may be listed or quoted at the time
      of
      sale;</font></div>
    <div style="MARGIN-TOP: 5pt; PADDING-LEFT: 36pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: -10pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"><font style="FONT-FAMILY: Symbol">&#183;</font></div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt"><font style="FONT-FAMILY: Times New Roman">in
      the over-the-counter
      market;</font></div>
    <div style="MARGIN-TOP: 5pt; PADDING-LEFT: 36pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: -10pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"><font style="FONT-FAMILY: Symbol">&#183;</font></div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt"><font style="FONT-FAMILY: Times New Roman">in
      transactions otherwise than on these
      exchanges or systems or in the over-the-counter market;</font></div>
    <div style="MARGIN-TOP: 5pt; PADDING-LEFT: 36pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: -10pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"><font style="FONT-FAMILY: Symbol">&#183;</font></div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt"><font style="FONT-FAMILY: Times New Roman">through
      the writing of options, whether
      such options are listed on an options exchange or otherwise;</font></div>
    <div style="MARGIN-TOP: 5pt; PADDING-LEFT: 36pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: -10pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"><font style="FONT-FAMILY: Symbol">&#183;</font></div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt"><font style="FONT-FAMILY: Times New Roman">ordinary
      brokerage transactions and
      transactions in which the broker-dealer solicits purchasers;</font></div>
    <div style="MARGIN-TOP: 5pt; PADDING-LEFT: 36pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: -10pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"><font style="FONT-FAMILY: Symbol">&#183;</font></div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt"><font style="FONT-FAMILY: Times New Roman">block
      trades in which the broker-dealer
      will attempt to sell the units as agent but may position and resell a portion
      of
      the block as principal to facilitate the transaction;</font></div>
    <div style="MARGIN-TOP: 5pt; PADDING-LEFT: 36pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: -10pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"><font style="FONT-FAMILY: Symbol">&#183;</font></div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt"><font style="FONT-FAMILY: Times New Roman">purchases
      by a broker-dealer as principal
      and resale by the broker-dealer for its account;</font></div>
    <div style="MARGIN-TOP: 5pt; PADDING-LEFT: 36pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: -10pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"><font style="FONT-FAMILY: Symbol">&#183;</font></div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt"><font style="FONT-FAMILY: Times New Roman">an
      exchange distribution in accordance with
      the rules of the applicable exchange;</font></div>
    <div style="MARGIN-TOP: 5pt; PADDING-LEFT: 36pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: -10pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"><font style="FONT-FAMILY: Symbol">&#183;</font></div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt"><font style="FONT-FAMILY: Times New Roman">privately
      negotiated
      transactions;</font></div>
    <div style="MARGIN-TOP: 5pt; PADDING-LEFT: 36pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: -10pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"><font style="FONT-FAMILY: Symbol">&#183;</font></div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt"><font style="FONT-FAMILY: Times New Roman">short
      sales;</font></div>
    <div style="MARGIN-TOP: 5pt; PADDING-LEFT: 36pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: -10pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"><font style="FONT-FAMILY: Symbol">&#183;</font></div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt"><font style="FONT-FAMILY: Times New Roman">sales
      pursuant to Rule 144;</font></div>
    <div style="MARGIN-TOP: 5pt; PADDING-LEFT: 36pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: -10pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"><font style="FONT-FAMILY: Symbol">&#183;</font></div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt"><font style="FONT-FAMILY: Times New Roman">broker-dealers
      may agree with the selling
      securityholders to sell a specified number of such units at a stipulated price
      per unit;</font></div>
    <div style="MARGIN-TOP: 5pt; PADDING-LEFT: 36pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: -10pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"><font style="FONT-FAMILY: Symbol">&#183;</font></div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt"><font style="FONT-FAMILY: Times New Roman">a
      combination of any such methods of sale;
      and</font></div>
    <div style="MARGIN-TOP: 5pt; PADDING-LEFT: 36pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: -10pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"><font style="FONT-FAMILY: Symbol">&#183;</font></div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt"><font style="FONT-FAMILY: Times New Roman">any
      other method permitted pursuant to
      applicable law.</font></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 11pt">If
      the selling securityholders effect such transactions by selling depositary
      units
      to or through underwriters, broker-dealers or agents, such underwriters,
      broker-dealers or agents may receive commissions in the form of discounts,
      concessions or commissions from the selling securityholders or commissions
      from
      purchasers of the depositary units for whom they may act as agent or to whom
      they may sell as principal (which discounts, concessions or commissions as
      to
      particular underwriters, broker-dealers or agents may be in excess of those
      customary in the types of transactions involved). In connection with sales
      of
      the depositary units or otherwise, the selling securityholders may enter into
      hedging transactions with broker-dealers, which may in turn engage in short
      sales of the depositary units in the course of hedging in positions they assume.
      The selling securityholders may also sell depositary units short and deliver
      depositary units covered by this prospectus to close out short positions and
      to
      return borrowed units in connection with such short sales. The selling
      securityholders may also loan or pledge depositary units to broker-dealers
      that
      in turn may sell such units.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 11pt">The
      selling securityholders may pledge or grant a security interest in some or
      all
      of the depositary units owned by them and, if they default in the performance
      of
      their secured obligations, the pledgees or secured parties may offer and sell
      the depositary units from time to time pursuant to this prospectus or any
      amendment to this prospectus under Rule 424(b)(3) or other applicable provision
      of the Securities Act, amending, if necessary, the list of selling
      securityholders to include the pledgee, transferee or other successors in
      interest as selling securityholders under this prospectus. The selling
      securityholders also may transfer and donate the depositary units in other
      circumstances in which case the transferees, donees, pledgees or other
      successors in interest will be the selling beneficial owners for purposes of
      this prospectus.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 11pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">38</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
<div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; PAGE-BREAK-BEFORE: always; LINE-HEIGHT: 11pt">
<p align="left"><strong><a href="#toc">Back to Table of Contents</a></strong></p></div>
<div style="TEXT-INDENT: 18pt; LINE-HEIGHT: 11pt">The
      selling securityholders and any broker-dealer participating in the distribution
      of the depositary units may be deemed to be &#8220;underwriters&#8221; within the meaning of
      the Securities Act, and any commission paid, or any discounts or concessions
      allowed to, any such broker-dealer may be deemed to be underwriting commissions
      or discounts under the Securities Act. At the time a particular offering of
      the
      depositary units is made, a prospectus supplement, if required, will be
      distributed which will set forth the aggregate amount of depositary units being
      offered and the terms of the offering, including the name or names of any
      broker-dealers or agents, any discounts, commissions and other terms
      constituting compensation from the selling securityholders and any discounts,
      commissions or concessions allowed or reallowed or paid to broker-dealers.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Under
      the
      securities laws of some states, the depositary units may be sold in such states
      only through registered or licensed brokers or dealers. In addition, in some
      states the depositary units may not be sold unless such units have been
      registered or qualified for sale in such state or an exemption from registration
      or qualification is available and is complied with.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">There
      can
      be no assurance that any selling securityholder will sell any or all of the
      depositary units registered pursuant to the registration statement, of which
      this prospectus forms a part.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 11pt">The
      selling securityholders and any other person participating in such distribution
      will be subject to applicable provisions of the Exchange Act, and the rules
      and
      regulations thereunder, including, without limitation, Regulation M of the
      Exchange Act, which may limit the timing of purchases and sales of any of the
      depositary units by the selling securityholders and any other participating
      person. Regulation M may also restrict the ability of any person engaged in
      the
      distribution of the depositary units to engage in market-making activities
      with
      respect to the depositary units. All of the foregoing may affect the
      marketability of the depositary units and the ability of any person or entity
      to
      engage in market-making activities with respect to the depositary units.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">We will
      pay all expenses of the registration of the depositary units pursuant to the
      registration rights agreement, estimated to be $[_] in total, including, without
      limitation, SEC filing fees and expenses of compliance with state securities
      or
&#8220;blue sky&#8221; laws; provided, however, that a selling securityholder will pay all
      underwriting discounts and selling commissions, if any. We will indemnify the
      selling securityholders against liabilities, including some liabilities under
      the Securities Act, in accordance with the registration rights agreements,
      or
      the selling securityholders will be entitled to contribution. We may be
      indemnified by the selling securityholders against civil liabilities, including
      liabilities under the Securities Act, which may arise from any written
      information furnished to us by the selling securityholder specifically for
      use
      in this prospectus, in accordance with the related registration rights
      agreement, or we may be entitled to contribution.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Once
      sold
      under the Registration Statement, of which this prospectus forms a part, the
      depositary units will be freely tradable in the hands of persons other than
      our
      affiliates.</div>

<div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong><a name="11"></a>LEGAL
  MATTERS</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Proskauer
      Rose LLP will provide us with an opinion as to certain legal matters in
      connection with the depositary units we are offering, including the validity
      of
      the depositary units being offered hereby.</div>

<div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong><a name="12"></a>EXPERTS</strong></div>

<div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The consolidated
  financial statements of American Real Estate Partners, L.P. and Subsidaries
  as of December&nbsp;31, 2006 and 2005 and for each of the three years in the
  period ended December 31, 2006 and management&#8217;s assessment of effectiveness of internal
control over financial reporting as of December 31, 2006
incorporated by reference in this prospectus
  have been audited by Grant Thornton LLP, independent registered public
  accountants, as indicated in their reports with respect thereto (which report on the
consolidated financial statements refers to the change in accounting for the Partnership&#8217;s investment in
ImClone Systems Incorporated and Subsidiary from an available for sale security to the equity method)
and are included herein in reliance upon the authority of said firm as experts in accounting and auditing in giving
said reports.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      balance sheet of American Property Investors, Inc., as of December 31, 2006,
      included in this prospectus has been audited by Grant Thornton LLP, independent
      accountants, as stated in its report with respect thereto, and is included herein
      in reliance upon the authority of said firm as experts in accounting
      and auditing in giving said report.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">39</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; PAGE-BREAK-BEFORE: always">
  <p align="left"><strong><a href="#toc">Back to Table of Contents</a></strong></p></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      consolidated financial statements of ImClone Systems Incorporated and subsidiary
      as of December 31, 2006 and 2005, and for each of the years in the three-year
      period ended December 31, 2006, have been incorporated by reference herein
      in
      reliance upon the report of KPMG LLP, independent registered public accounting
      firm, incorporated by reference herein, and upon the authority of said firm
      as
      experts in accounting and auditing. The audit report covering the December
      31,
      2006 consolidated financial statements refers to the Company&#8217;s adoption of the
      provisions of Statement of Financial Accounting Standards No. 123R, &#8220;Share-Based
      Payment.&#8221;</div>

<div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The consolidated
  financial statements of GB Holdings, Inc. and subsidiaries for the year ended
  December 31, 2004 have been incorporated by reference herein in reliance upon
  the report of KPMG LLP, independent registered public accounting firm, incorporated
  by reference herein, and upon the authority of said firm as experts in accounting
  and auditing.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      consolidated financial statements and financial statement schedule of Lear
      Corporation as of December&#160;31, 2006 and 2005 and for each of the three
      years in the period ended December&#160;31, 2006 included elsewhere in this
      prospectus have been audited by Ernst &amp; Young LLP, independent registered
      public accounting firm, as set forth in their report thereon appearing elsewhere
      herein and are included in reliance upon such report given on the authority
      of
      such firm as experts in accounting and auditing.</div>

<div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong><a name="13"></a>WHERE
  YOU CAN FIND MORE INFORMATION</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">We have
      filed with the SEC a Registration Statement on Form S-3 under the Securities
      Act
      to register the depositary units offered by this prospectus. This prospectus
      is
      part of the Registration Statement. This prospectus does not contain all the
      information contained in the Registration Statement because we have omitted
      certain parts of the Registration Statement in accordance with the rules and
      regulations of the SEC. For further information, we refer you to the
      Registration Statement, which you may read and copy at the public reference
      facilities maintained by the SEC at 100 F Street, N. E. Room 1580, Washington,
      D.C. 20549. You may obtain copies at the prescribed rates from the Public
      Reference Section of the SEC at its principal office in Washington, D.C. You
      may
      call the SEC at 1-800-SEC-0330 for further information about the public
      reference rooms. The SEC maintains a web site that contains reports, proxy
      and
      information statements and other information regarding us. You may access the
      SEC&#8217;s web site at http://www.sec.gov.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">We are
      subject to the informational requirements of the Exchange Act. As a result,
      we
      are required to file reports, proxy statements and other information with the
      SEC. These materials can be copied and inspected at the locations described
      above. Copies of these materials can be obtained from the Public Reference
      Section of the SEC at 100 F Street, N. E. Room 1580, Washington, D.C. 20549,
      at
      prescribed rates. Our depositary units are listed on the New York Stock Exchange
      under the symbol &#8220;ACP.&#8221;</div>

<div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong><a name="14"></a>INCORPORATION
  OF CERTAIN DOCUMENTS BY REFERENCE</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The SEC
      allows us to &#8220;incorporate by reference&#8221; the information we file with them, which
      means that we can disclose important information to you by referring you to
      those documents. The information incorporated by reference is considered to
      be
      part of this prospectus, and information that we file later with the SEC will
      automatically update and supersede this information. We incorporate by reference
      the documents listed below, all filings made pursuant to the Exchange Act after
      the date of the initial registration statement and prior to effectiveness of
      the
      Registration Statement and any other future filings we will make with the SEC
      under Section 13(a), 13(c), 14 or 15(d) of the Exchange Act (other than Current
      Reports on Form 8-K containing disclosure furnished under Items 2.02, 7.01
      or
      8.01 of Form 8-K, unless otherwise indicated therein):</div>
    <div style="MARGIN-TOP: 5pt; PADDING-LEFT: 36pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: -10pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"><font style="FONT-FAMILY: Symbol">&#183;</font></div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt"><font style="FONT-FAMILY: Times New Roman">Our
      Annual Report on Form 10-K and Form
      10-K/A, Amendment No. 1, for the fiscal year ended December 31, 2006, filed
      with
      the SEC on March 6, 2007 and March 16, 2007, respectively (SEC File No.
      001-09516);</font></div>
    <div style="MARGIN-TOP: 5pt; PADDING-LEFT: 36pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: -10pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"><font style="FONT-FAMILY: Symbol">&#183;</font></div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt"><font style="FONT-FAMILY: Times New Roman">Our
      Quarterly Report on Form 10-Q for the
      fiscal quarter ended March 31, 2007, filed with the SEC on May 10, 2007 (SEC
      File No. 001-09516);</font></div>
    <div style="MARGIN-TOP: 5pt; MARGIN-BOTTOM: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">40</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
<div style="MARGIN-TOP: 5pt; MARGIN-BOTTOM: -10pt; PAGE-BREAK-BEFORE: always; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt;"></div>
<p align="left"><strong><a href="#toc">Back to Table of Contents</a></strong></p>
<div style="PADDING-LEFT: 36pt; FONT-SIZE: 8pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"><font style="FONT-FAMILY: Symbol">&#183;</font></div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt"><font style="FONT-FAMILY: Times New Roman">Our
      Current Reports on Form 8-K, filed with
      the SEC on April 3, 2007, April 5, 2007, April 17, 2007, April 24, 2007, April
      27, 2007 and May 10, 2007 (SEC File No. 001-09516); and</font></div>
    <div style="MARGIN-TOP: 5pt; PADDING-LEFT: 36pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: -10pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"><font style="FONT-FAMILY: Symbol">&#183;</font></div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt"><font style="FONT-FAMILY: Times New Roman">The
      description of the depositary units
      contained in the Registration Statement on Form 8-A, initially filed on May
      12,
      1987, and any subsequent amendment thereto filed for the purpose of updating
      such description.</font></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">You may
      request a copy of these filings (not including the exhibits to such documents
      unless the exhibits are specifically incorporated by reference in the
      information contained in this prospectus), at no cost, by writing or telephoning
      us at the following address:</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt" align="center">American
      Real
      Estate Partners, L.P.<br>767 Fifth Avenue, Suite 4700<br>New York, New York
      10153<br>Attn: Chief Financial Officer<br>Telephone requests may be directed to
      (212) 702-4300</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">This
      prospectus is part of a Registration Statement we filed with the SEC. You should
      rely only on the information or representations provided in this prospectus.
      We
      have authorized no one to provide you with different information. We are not
      making an offer of these securities in any state where the offer is not
      permitted.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">You
      should not assume that the information in this prospectus is accurate as of
      any
      date other than the date on the front of the document.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Statements
      contained in this prospectus as to the contents of any contract or document
      are
      not necessarily complete and in each instance reference is made to the copy
      of
      that contract or document filed as an exhibit to the Registration Statement
      or
      as an exhibit to another filing, each such statement being qualified in all
      respects by such reference and the exhibits and schedules thereto.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">41</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="MARGIN-TOP: 5pt; PADDING-LEFT: 36pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: -10pt; PAGE-BREAK-BEFORE: always; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"></div>

<p align="left"><strong><a href="#toc">Back to Table of Contents</a></strong></p>
<p></p>
  <div style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 6.65pt" align="center"><font style="FONT-FAMILY: Times New Roman" color="#000000"><strong><a name="15"></a>INDEX
  TO FINANCIAL STATEMENTS</strong></font></div>
    <div>

  <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">
    <tr>
      <td width="426"> </td>
      <td width="13"> </td>
      <td width="28"> </td>
    </tr>
    <tr>
      <td valign="bottom" width="568"> <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt">American
          Property Investors, Inc.</div></td>
      <td valign="top" width="18"> <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt">&#160;&#160;&#160;&#160;</div></td>
      <td valign="top" width="37"> <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div></td>
    </tr>
    <tr bgcolor="#ccffcc">
      <td valign="bottom" width="568"> <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -5.75pt"><a href="#f1">Independent
          Auditors&#8217; Report</a></div></td>
      <td valign="top" width="18">&#160;</td>
      <td valign="top" width="37"> <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -5.75pt" align="right"><a href="#f1">F-2</a></div></td>
    </tr>
    <tr bgcolor="white">
      <td valign="bottom" width="568"> <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -5.75pt"><a href="#f2">Balance
          Sheet as of December 31, 2006</a></div></td>
      <td valign="top" width="18">&#160;</td>
      <td valign="top" width="37"> <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -5.75pt" align="right"><a href="#f2">F-3</a></div></td>
    </tr>
    <tr bgcolor="#ccffcc">
      <td valign="bottom" width="568"> <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -5.75pt"><a href="#f3">Notes
          to Financial Statements</a></div></td>
      <td valign="top" width="18">&nbsp;</td>
      <td valign="top" width="37"> <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -5.75pt" align="right"><a href="#f3">F-4</a></div></td>
    </tr>
    <tr bgcolor="white">
      <td valign="bottom" width="568">&#160;</td>
      <td valign="top" width="18">&#160;</td>
      <td valign="top" width="37">&#160;</td>
    </tr>
    <tr bgcolor="#ccffcc">
      <td valign="bottom" width="568"> <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt">Lear
          Corporation</div></td>
      <td valign="top" width="18">&#160;</td>
      <td valign="top" width="37">&#160;</td>
    </tr>
    <tr bgcolor="white">
      <td valign="bottom" width="568"> <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt"><a href="#f4">Report
          of Independent Registered Public Accounting Firm</a></div></td>
      <td valign="top" width="18">&nbsp;</td>
      <td valign="top" width="37"> <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt" align="right"><a href="#f4">F-7</a></div></td>
    </tr>
    <tr bgcolor="#ccffcc">
      <td valign="bottom" width="568"> <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt"><a href="#f5">Consolidated
          Balance Sheets as of December 31, 2006 and 2005</a></div></td>
      <td valign="top" width="18">&nbsp;</td>
      <td valign="top" width="37"> <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt" align="right"><a href="#f5">F-8</a></div></td>
    </tr>
    <tr bgcolor="white">
      <td valign="bottom" width="568"> <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt"><a href="#f6">Consolidated
          Statements of Operations for the years ended December 31, 2006, 2005
          and 2004</a></div></td>
      <td valign="top" width="18">&nbsp;</td>
      <td valign="top" width="37"> <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt" align="right"><a href="#f6">F-9</a></div></td>
    </tr>
    <tr bgcolor="#ccffcc">
      <td valign="bottom" width="568"> <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt"><a href="#f5">Consolidated
          Statements of Stockholders&#8217; Equity for the years ended December
          31, 2006, 2005<br>
          and 2004</a></div></td>
      <td valign="top" width="18">&nbsp;</td>
      <td valign="top" width="37"> <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt" align="right"><a href="#f5">F-10</a></div></td>
    </tr>
    <tr bgcolor="white">
      <td valign="bottom" width="568"> <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt"><a href="#f8">Consolidated
          Statements of Cash Flows for the years ended December 31, 2006, 2005
          and 2004</a></div></td>
      <td valign="top" width="18">&#160;</td>
      <td valign="top" width="37"> <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt" align="right"><a href="#f8">F-11</a></div></td>
    </tr>
    <tr bgcolor="#ccffcc">
      <td valign="bottom" width="568"> <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt"><a href="#f9">Notes
          to the Consolidated Financial Statements</a></div></td>
      <td valign="top" width="18">&#160;</td>
      <td valign="top" width="37"> <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt" align="right"><a href="#f9">F-12</a></div></td>
    </tr>
    <tr bgcolor="white">
      <td valign="bottom" width="568"> <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt"><a href="#f10">Schedule
          II &#8211; Valuation and Qualifying Accounts</a></div></td>
      <td valign="top" width="18">&#160;</td>
      <td valign="top" width="37"> <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt" align="right"><a href="#f10">F-66</a></div></td>
    </tr>
    <tr bgcolor="#ccffcc">
      <td valign="bottom" width="568">&#160;</td>
      <td valign="top" width="18">&#160;</td>
      <td valign="top" width="37">&#160;</td>
    </tr>
    <tr bgcolor="white">
      <td valign="bottom" width="568"> <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt"><a href="#f11">Condensed
          Consolidated Balance Sheets as of March 31, 2007 and December 31, 2006</a></div></td>
      <td valign="top" width="18">&nbsp;</td>
      <td valign="top" width="37"> <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt" align="right"><a href="#f11">F-67</a></div></td>
    </tr>
    <tr bgcolor="#ccffcc">
      <td valign="bottom" width="568"> <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt"><a href="#f10">Condensed
          Consolidated Statements of Income for the three months ended March 31,
          2007 and<br>
          April 1, 2006</a></div></td>
      <td valign="top" width="18">&nbsp;</td>
      <td valign="top" width="37"> <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt" align="right"><a href="#f10">F-68</a></div></td>
    </tr>
    <tr bgcolor="white">
      <td valign="bottom" width="568"> <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt"><a href="#f13">Condensed
          Consolidated Statements of Cash Flows for the three months ended March
          31, 2007<br>
          and April 1, 2006</a></div></td>
      <td valign="top" width="18">&#160;</td>
      <td valign="top" width="37"> <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt" align="right"><a href="#f13">F-69</a></div></td>
    </tr>
    <tr bgcolor="#ccffcc">
      <td valign="bottom" width="568"> <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt"><a href="#f14">Notes
          to the Condensed Consolidated Financial Statements</a></div></td>
      <td valign="top" width="18">&#160;</td>
      <td valign="top" width="37"> <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt" align="right"><a href="#f13">F-70</a></div></td>
    </tr>
  </table>
    </div>
    <div style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 13.35pt" align="center"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-1</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">

<div style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 13.35pt; PAGE-BREAK-BEFORE: always" align="center">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
  <strong><a name="f1"></a>REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING
  FIRM</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt">The Board of
      Directors<br>American Property Investors, Inc.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">We have
      audited the accompanying balance sheet of American Property Investors, Inc.
      as
      of December&#160;31, 2006. This financial statement is the responsibility of the
      Company&#8217;s management. Our responsibility is to express an opinion on this
      financial statement based on our audit.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">We
      conducted our audit in accordance with the Standards of the Public Company
      Accounting Oversight Board (United States). Those standards require that we
      plan
      and perform the audit to obtain reasonable assurance about whether the balance
      sheet is free of material misstatement. An audit includes examining, on a test
      basis, evidence supporting the amounts and disclosures in that balance sheet.
      An
      audit also includes assessing the accounting principles used and significant
      estimates made by management, as well as evaluating the overall balance sheet
      presentation. We believe that our audit of the balance sheet provides a
      reasonable basis for our opinion.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 6.65pt; TEXT-INDENT: 18pt">In
      our
      opinion, the balance sheet referred to above presents fairly, in all material
      respects, the financial position of American Property Investors, Inc. as of
      December&#160;31, 2006, in conformity with accounting principles generally
      accepted in the United States of America.</div>
    <div style="MARGIN-TOP: 20pt; MARGIN-BOTTOM: 0pt">/s/ Grant Thornton LLP</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt">New York, New
      York<br>June&#160;15, 2007</div>
    <div style="MARGIN: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-2</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">

<div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt" align="center">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p align="center"><strong><a name="f2"></a>AMERICAN PROPERTY INVESTORS, INC.</strong></p>
</div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 6.65pt" align="center"><strong>BALANCE
      SHEET</strong></div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="388">
            </td>
            <td width="14">
            </td>
            <td width="6">
            </td>
            <td width="58">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="517">&#160;</td>
            <td valign="top" width="19">&#160;</td>
            <td colspan="2" valign="bottom" width="86" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>December&#160;31,<br>2006</strong></div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="517">&#160;</td>
            <td valign="top" width="19">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt" align="center"><strong>&#160;&#160;&#160;&#160;&#160;</strong></div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="78">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="517">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt" align="center"><strong>ASSETS</strong></div>
            </td>
            <td valign="top" width="19">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="78">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="517">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Cash
                and cash equivalents</div>
            </td>
            <td valign="top" width="19">&#160;</td>
            <td valign="bottom" width="8">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="78">
              <div style="MARGIN: 0pt" align="right">1,204,034 </div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="517">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Investment
                in partnerships (Note B)</div>
            </td>
            <td valign="top" width="19">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="78" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">52,342,623 </div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="517">&#160;</td>
            <td valign="top" width="19">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="78" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">53,546,657 </div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="517">&#160;</td>
            <td valign="top" width="19">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="78">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="517">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt" align="center"><strong>LIABILITIES
                AND STOCKHOLDER&#8217;S
                EQUITY</strong></div>
            </td>
            <td valign="top" width="19">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="78">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="517">&#160;</td>
            <td valign="top" width="19">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="78">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="517">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Accounts
                payable and accrued expenses</div>
            </td>
            <td valign="top" width="19">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="78">
              <div style="MARGIN: 0pt" align="right">6,059 </div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="517">&#160;</td>
            <td valign="top" width="19">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="78">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="517">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Stockholder&#8217;s
                equity:</div>
            </td>
            <td valign="top" width="19">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="78">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="517">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Common
                stock &#8211; $1 par value, 1,216 shares authorized, <br>216 shares
                outstanding</div>
            </td>
            <td valign="top" width="19">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="78">
              <div style="MARGIN: 0pt" align="right">216 </div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="517">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Additional
                paid-in capital</div>
            </td>
            <td valign="top" width="19">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="78">
              <div style="MARGIN: 0pt" align="right">35,507,904 </div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="517">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Note
                receivable from affiliate (Note C)</div>
            </td>
            <td valign="top" width="19">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="78">
              <div style="MARGIN: 0pt" align="right">(9,500,000)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="517">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Retained
                earnings</div>
            </td>
            <td valign="top" width="19">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="78">
              <div style="MARGIN: 0pt" align="right">26,938,478 </div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="517">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Accumulated
                other comprehensive
                income&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="top" width="19">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="78" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">594,000 </div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="517">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 30pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Total
                stockholder&#8217;s equity</div>
            </td>
            <td valign="top" width="19">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="78" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">53,540,598 </div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="517">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 30pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Total
                liabilities and stockholder's equity</div>
            </td>
            <td valign="top" width="19">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="78" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">53,546,657
</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="MARGIN: 0pt" align="center"><br><br></div>
    <div style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 6.65pt" align="center"><i>See notes
      to
      balance sheet.</i></div>
    <div style="MARGIN: 0pt" align="center">F-3</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">

<div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt" align="center">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
<strong><a name="f3"></a>AMERICAN
  PROPERTY INVESTORS, INC.</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong>Notes
      to Balance Sheet<br>December&#160;31, 2006</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>Note A &#8212; Business and
      Summary of Significant Accounting Policies</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>1.
      Organization</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">American
      Property Investors, Inc. (&#8220;API&#8221; or &#8220;the Company&#8221;) is the general partner of both
      American Real Estate Partners, L.P. (&#8220;AREP&#8221;) and American Real Estate Holdings
      Limited Partnership (&#8220;AREH&#8221;). API has 1% general partnership interest in both
      AREP and AREH. API is a wholly-owned subsidiary of Becton Corporation (&#8220;Becton&#8221;)
      which in turn is owned by Carl C. Icahn. Mr.&#160;Icahn also owns, indirectly,
      approximately 90% of the limited partnership interests of AREP, a New York
      Stock
      Exchange master limited partnership.</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>2. Cash and Cash
      Equivalents</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      Company considers all temporary cash investments with maturity at the date
      of
      purchase of three months or less to be cash equivalents.</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>3. Use of
      Estimates</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Management
      of
      the Company has made certain estimates and assumptions relating to the reporting
      of assets and liabilities and the disclosure of contingent assets and
      liabilities at the date of the financial statement to prepare this balance
      sheet
      in conformity with accounting principles generally accepted in the United States
      of America. Actual results could differ from those estimates.</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>4. Income
      Taxes</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      Company and its parent have elected and the stockholders have consented, under
      the applicable provisions of the Internal Revenue Code, to report their income
      for Federal income tax purposes as a Subchapter S Corporation. The stockholders
      report their respective shares of the net taxable income or loss on their
      personal tax returns. Accordingly, no liability has been accrued for current
      or
      deferred Federal income taxes related to the operations of the Company in the
      accompanying balance sheet. State and local taxes are de minimus</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>5. Investments
      in
      Partnerships</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      Company evaluates its investments in partially-owned entities in accordance
      with
      FASB Interpretation No. 46 (revised December&#160;2003), Consolidation of
      Variable Interest Entities, or FIN 46R. If the partially-owned entity is a
      &#8220;variable interest entity,&#8221; or a &#8220;VIE,&#8221; and that the Company is the &#8220;primary
      beneficiary&#8221; as defined in FIN 46R, the Company would account for such
      investment as if it were a consolidated subsidiary.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">For a
      partnership investment which is not a VIE or in which the Company is not the
      primary beneficiary, the Company follows the accounting set forth in AICPA
      Statement of Position No. 78-9 &#8211; Accounting for Investments in Real Estate
      Ventures (SOP 78-9). In accordance with this pronouncement, investments in
      joint
      ventures are accounted for under the equity method when its ownership interest
      is less than 50% and it does not exercise direct or indirect control. Factors
      that are considered in determining whether or not the Company exercises control
      include important rights of partners in significant business decisions,
      including dispositions and acquisitions of assets, financing and operating
      and
      capital budgets, board and management representation and authority and other
      contractual rights of the partners. To the extent that the Company is deemed
      to
      control these entities, these entities would be consolidated.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      Company has determined that the AREP and AREH partnerships are not VIEs and
      therefore it accounts for these investments under the equity method of
      accounting as the limited partners have important rights as defined in SOP
      78-9.
      This investment was recorded initially at cost and was subsequently adjusted
      for
      equity in earnings or losses and cash contributions and distributions as well
      as
      other comprehensive income/loss.</div>
    <div style="MARGIN: 0pt" align="center"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-4</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt" align="center">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
<strong>AMERICAN
      PROPERTY INVESTORS, INC.</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong>Notes
      to Balance Sheet<br>December&#160;31, 2006</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>Note A &#8212; Business and
      Summary of Significant Accounting Policies &#8211; (continued)</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">On a
      periodic basis the Company evaluates whether there are any indicators that
      the
      value of its investments in partnerships are impaired. An investment is
      considered to be impaired if the Company&#8217;s estimate of the value of the
      investment is less than the carrying amount. The ultimate realization of the
      Company&#8217;s investments in partnerships is dependent on a number of factors
      including the performance of that entity and market conditions. If the Company
      determines that a decline in the value of a partnership is other than temporary,
      then the Company would record an impairment charge.</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>Note B &#8212; Investment in
      Partnerships</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      Company has a 1% general partnership interest in both AREP and AREH. AREP is
      the
      99% limited partner and holding company of AREH which is involved in the
      following operating businesses: (i) Oil &amp; Gas; (ii) Gaming; (iii) Real
      Estate; and (iv) Home Fashion.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      carrying amount of the investment in partnerships on the Company&#8217;s balance sheet
      exceeds the underlying equity in the net assets of the partnerships by
      $254,382,000. This difference is as a result of adjustments reflected in AREP&#8217;s
      equity to account for certain acquisitions from affiliates of the general
      partner. The differences between the historical cost of companies acquired
      and
      the purchase price paid to the affiliates of the general partner were accounted
      for as contributions from or distributions to the general partner.</div>
    <div style="MARGIN: 0pt" align="center"><br></div>
<div style="MARGIN: 0pt" align="center"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-5</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt" align="center">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
<strong>AMERICAN
      PROPERTY INVESTORS, INC.</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong>Notes
      to Balance Sheet<br>December 31, 2006</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 6.65pt; TEXT-INDENT: 18pt">Summarized
      financial information for American Real Estate Partners, L.P. and subsidiaries
      as of December 31, 2006 is as follows (in thousands of dollars):</div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="316">
            </td>
            <td width="10">
            </td>
            <td width="5">
            </td>
            <td width="42">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="422">&#160;</td>
            <td valign="bottom" width="13">&#160;</td>
            <td colspan="2" valign="bottom" width="63" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>December&#160;31,<br>2006</strong></div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="422">&#160;</td>
            <td valign="bottom" width="13">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt" align="center"><strong>&#160;&#160;&#160;&#160;&#160;</strong></div>
            </td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="56">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="422">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt" align="center"><strong>ASSETS</strong></div>
            </td>
            <td valign="bottom" width="13">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="56">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="422">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Cash
                and cash equivalents</div>
            </td>
            <td valign="bottom" width="13">&#160;</td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="56">
              <div style="MARGIN: 0pt" align="right">1,912,235</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="422">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Investments</div>
            </td>
            <td valign="bottom" width="13">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="56">
              <div style="MARGIN: 0pt" align="right">539,115</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="422">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Inventories,
                net</div>
            </td>
            <td valign="bottom" width="13">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="56">
              <div style="MARGIN: 0pt" align="right">245,502</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="422">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Trade,
                notes and other receivables, net</div>
            </td>
            <td valign="bottom" width="13">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="56">
              <div style="MARGIN: 0pt" align="right">176,496</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="422">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Other
                current assets</div>
            </td>
            <td valign="bottom" width="13">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="56">
              <div style="MARGIN: 0pt" align="right">134,987</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="422">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Assets
                held for sale</div>
            </td>
            <td valign="bottom" width="13">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="56" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">47,503</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="422">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 30pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Total
                current assets</div>
            </td>
            <td valign="bottom" width="13">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="56" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">3,055,838</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="422">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Property,
                plant and equipment, net</div>
            </td>
            <td valign="bottom" width="13">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="56">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="422">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Gaming</div>
            </td>
            <td valign="bottom" width="13">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="56">
              <div style="MARGIN: 0pt" align="right">422,715</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="422">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Real
                Estate</div>
            </td>
            <td valign="bottom" width="13">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="56">
              <div style="MARGIN: 0pt" align="right">283,974</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="422">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Home
                Fashion</div>
            </td>
            <td valign="bottom" width="13">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="56" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">200,382</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="422">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 30pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Total
                property, plant and
                equipment&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="13">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="56" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">907,071</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="422">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Equity
                investment and other</div>
            </td>
            <td valign="bottom" width="13">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="56">
              <div style="MARGIN: 0pt" align="right">179,932</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="422">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Intangible
                assets</div>
            </td>
            <td valign="bottom" width="13">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="56">
              <div style="MARGIN: 0pt" align="right">25,916</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="422">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Other
                assets</div>
            </td>
            <td valign="bottom" width="13">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="56" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">75,990</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="422">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 30pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Total
                assets</div>
            </td>
            <td valign="bottom" width="13">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="56" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">4,244,747</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="422">&#160;</td>
            <td valign="bottom" width="13">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="56">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="422">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt" align="center"><strong>LIABILITIES
                AND PARTNERS&#8217; EQUITY</strong></div>
            </td>
            <td valign="bottom" width="13">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="56">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="422">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Accounts
                payable</div>
            </td>
            <td valign="bottom" width="13">&#160;</td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="56">
              <div style="MARGIN: 0pt" align="right">69,853</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="422">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Accrued
                expenses and other current liabilities</div>
            </td>
            <td valign="bottom" width="13">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="56">
              <div style="MARGIN: 0pt" align="right">197,792</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="422">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Current
                portion of long-term debt</div>
            </td>
            <td valign="bottom" width="13">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="56">
              <div style="MARGIN: 0pt" align="right">23,970</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="422">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Securities
                sold not yet purchased</div>
            </td>
            <td valign="bottom" width="13">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="56">
              <div style="MARGIN: 0pt" align="right">25,398</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="422">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Margin
                liability on marketable securities</div>
            </td>
            <td valign="bottom" width="13">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="56">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="422">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Liabilities
                of discontinued operations held for sale</div>
            </td>
            <td valign="bottom" width="13">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="56" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="422">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 30pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Total
                current liabilities</div>
            </td>
            <td valign="bottom" width="13">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="56" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">317,013</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="422">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Long-term
                debt</div>
            </td>
            <td valign="bottom" width="13">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="56">
              <div style="MARGIN: 0pt" align="right">1,184,990</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="422">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Other
                non-current liabilities</div>
            </td>
            <td valign="bottom" width="13">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="56">
              <div style="MARGIN: 0pt" align="right">22,212</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="422">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Preferred
                limited partnership units</div>
            </td>
            <td valign="bottom" width="13">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="56">
              <div style="MARGIN: 0pt" align="right">117,656</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="422">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Minority
                interests</div>
            </td>
            <td valign="bottom" width="13">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="56">
              <div style="MARGIN: 0pt" align="right">292,221</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="422">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Partners&#8217;
                equity</div>
            </td>
            <td valign="bottom" width="13">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="56" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">2,310,655</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="422">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 30pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Total
                liabilities and partners&#8217; equity</div>
            </td>
            <td valign="bottom" width="13">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="56" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">4,244,747</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>Note C &#8212; Note
      Receivable</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      Company has an unsecured demand note receivable due from Carl C. Icahn, in
      the
      amount of $9,500,000. Interest on the note accrues at the rate of 3.75% per
      annum and is payable on the last day of April and October. Interest has been
      paid through December&#160;31, 2006.</div>
    <div style="MARGIN: 0pt" align="center"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-6</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">

<div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt" align="center">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
<strong><a name="f4"></a>REPORT
  OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM </strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt">To the Board of Directors
      and Shareholders of<br>Lear Corporation </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">We have
      audited the accompanying consolidated balance sheets of Lear Corporation and
      Subsidiaries (the Company) as of December&#160;31, 2006 and 2005, and the
      related consolidated statements of operations, stockholders&#8217; equity and cash
      flows for each of the three years in the period ended December&#160;31, 2006.
      Our audits also included the financial statement schedule for the three years
      in
      the period ended December&#160;31, 2006, included in Item 8. These financial
      statements and schedule are the responsibility of the Company&#8217;s management. Our
      responsibility is to express an opinion on these financial statements and
      schedule based on our audits. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">We
      conducted our audits in accordance with the standards of the Public Company
      Accounting Oversight Board (United States). Those standards require that we
      plan
      and perform the audit to obtain reasonable assurance about whether the financial
      statements are free of material misstatement. An audit includes examining,
      on a
      test basis, evidence supporting the amounts and disclosures in the financial
      statements. An audit also includes assessing the accounting principles used
      and
      significant estimates made by management, as well as evaluating the overall
      financial statement presentation. We believe that our audits provide a
      reasonable basis for our opinion. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">In our
      opinion, the consolidated financial statements referred to above present fairly,
      in all material respects, the consolidated financial position of the Company
      as
      of December&#160;31, 2006 and 2005, and the consolidated results of its
      operations and its cash flows for each of the three years in the period ended
      December&#160;31, 2006, in conformity with U.S. generally accepted accounting
      principles. Also, in our opinion, the related financial statement schedule
      for
      the three years in the period ended December&#160;31, 2006, when considered in
      relation to the basic financial statements taken as a whole, presents fairly,
      in
      all material respects, the information set forth therein. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">As
      discussed in Note 2 to the consolidated financial statements, in 2006 the
      Company changed its method of accounting for stock-based compensation. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">As
      discussed in Note 10 to the consolidated financial statements, in 2006 the
      Company changed its method of accounting for pension and other postretirement
      benefit plans. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt">/s/ Ernst &amp; Young LLP
</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt">Detroit,
      Michigan<br>February&#160;20, 2007</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-7</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">

<div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt" align="center">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
<strong><a name="f5"></a>LEAR
  CORPORATION AND SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 6.65pt" align="center"><strong>CONSOLIDATED
      BALANCE SHEETS</strong></div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="364">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="30">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="35">
            </td>
            <td width="3">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="485">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="5" valign="bottom" width="117" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>December
                31,</strong></div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="485">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2006</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="53" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2005</strong></div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="485">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="5" valign="bottom" width="117">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center">(in
                millions,<br>except share data)</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="485">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt" align="center"><strong>ASSETS</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">&#160;</td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="485">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt"><strong>Current
                Assets:</strong></div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">502.7</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">197.3</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="485">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Cash
                and cash equivalents </div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">&#160;</td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="485">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Accounts
                receivable </div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">2,006.9</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">2,000.1</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="485">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Inventories
                </div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">581.5</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">595.6</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="485">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Current
                assets of business held for sale </div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">427.8</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">607.7</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="485">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Other
                </div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">371.4</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">445.7</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: #ccffcc 0.5pt solid;">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="485">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 30pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Total
                current assets</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">3,890.3</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">3,846.4</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: white 0.5pt solid;">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="485">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt"><strong>Long-Term
                Assets:</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">&#160;</td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="485">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Property,
                plant and equipment, net</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">1,471.7</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">1,614.7</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="485">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Goodwill,
                net </div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">1,996.7</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">1,939.8</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="485">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Long-term
                assets of business held for sale</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">485.2</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="485">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Other
                </div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">491.8</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">402.3</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="485">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 30pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Total
                long-term assets </div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">3,960.2</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">4,442.0</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="485">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="40" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">7,850.5</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">&#160;</td>
            <td valign="bottom" width="46" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">$8,288.4</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="485">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt" align="center"><strong>LIABILITIES
                AND STOCKHOLDERS&#8217;
EQUITY</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">&#160;</td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="485">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt"><strong>Current
                Liabilities:</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">&#160;</td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="485">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Short-term
                borrowings</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">39.3</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">23.4</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="485">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Accounts
                payable and drafts </div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">2,317.4</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">2,516.0</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="485">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Accrued
                liabilities </div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">1,099.3</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">1,008.6</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="485">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Current
                liabilities of business held for sale</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">405.7</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">549.3</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="485">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Current
                portion of long-term debt </div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">25.6</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">9.4</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: white 0.5pt solid;">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="485">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 30pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Total
                current liabilities</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">3,887.3</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">4,106.7</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="485">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt"><strong>Long-Term
                Liabilities:</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">&#160;</td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="485">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Long-term
                debt </div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">2,434.5</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">2,243.1</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="485">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Long-term
                liabilities of business held for sale </div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">48.5</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">27.6</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="485">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Other
                </div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">878.2</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">800.0</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="485">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 30pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Total
                long-term liabilities </div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">3,361.2</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">3,070.7</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="485">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt"><strong>Stockholders&#8217;
                Equity:</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">&#160;</td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="485">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Common
                stock, par value $0.01 per share, 150,000,000 shares
                authorized,<br>81,984,306 shares and 73,281,653 shares issued as of
                December&#160;31, 2006<br>and 2005, respectively </div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">0.7</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">0.7</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="485">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Additional
                paid-in capital</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">1,338.1</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">1,108.6</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="485">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Common
                stock held in treasury, 5,732,316 shares and 6,094,847 shares as
                of<br>December&#160;31, 2006 and 2005, respectively, at
                cost&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">(210.2</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">(225.5</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="485">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Retained
                earnings (deficit)</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">(362.5</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">361.8</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="485">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Accumulated
                other comprehensive loss</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">&#160;</td>
            <td valign="bottom" width="40" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">(164.1</div>
            </td>
            <td valign="bottom" width="16" style="border-bottom: white 3pt double;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">&#160;</td>
            <td valign="bottom" width="46" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">(134.6</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: white 3pt double;">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="485">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Total
                stockholders&#8217; equity</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">602.0</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">1,111.0</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="485">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="40" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">7,850.5</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="46" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">8,288.4</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>

      </table>
    </div>
    <div style="MARGIN: 0pt" align="center"><br><br></div>
    <div style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 5pt; FONT-FAMILY: Times New (W1)" align="center"><font style="FONT-FAMILY: Times New (W1)"><i>The
      accompanying notes
      are an integral part of these consolidated financial
      statements.</i></font></div>
    <div style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 5pt" align="center"><font style="FONT-FAMILY: Times New Roman">F-8</font></div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">

<div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt" align="center">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
<strong><a name="f6"></a>LEAR
  CORPORATION AND SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 6.65pt" align="center"><strong>CONSOLIDATED
      STATEMENTS OF OPERATIONS</strong></div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="307">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="35">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="35">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="35">
            </td>
            <td width="3">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="409">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="8" valign="bottom" width="193" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>For
                the Year Ended
                December&#160;31,</strong></div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="409">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="53" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2006</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="53" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2005</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="53" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2004</strong></div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="409">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="8" valign="bottom" width="193">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center">(in
                million, except per share data)</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="409">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Net
                sales</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">17,838.9</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">17,089.2</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">16,960.0</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="409">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Cost
                of sales </div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">16,911.2</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">16,353.2</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">15,557.9</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="409">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Selling,
                general and administrative expenses</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">646.7</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">630.6</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">633.7</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="409">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Goodwill
                impairment charge</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">2.9</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">1,012.8</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="409">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Loss
                on divestiture of Interior business</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">636.0</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="409">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Interest
                expense</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">209.8</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">183.2</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">165.5</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="409">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Other
                expense, net</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">85.7</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">38.0</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">38.6</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="409">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Income
                (loss) before provision for income taxes, minority interests<br>in
                consolidated subsidiaries, equity in net (income) loss of
                affiliates<br>and cumulative effect of a change in accounting
                principle</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">(653.4</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">(1,128.6</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">564.3</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="409">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Provision
                for income taxes</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">54.9</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">194.3</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">128.0</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="409">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Minority
                interests in consolidated subsidiaries</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">18.3</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">7.2</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">16.7</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="409">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Equity
                in net (income) loss of affiliates</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(16.2</div>
            </td>
            <td valign="bottom" width="16" style="border-bottom: #ccffcc 0.5pt solid;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">51.4</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(2.6</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: #ccffcc 0.5pt solid;">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="409">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Income
                (loss) before cumulative effect of a change in
                accounting<br>principle</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">(710.4</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">(1,381.5</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">422.2</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="409">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Cumulative
                effect of a change in accounting principle</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">2.9</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="409">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Net
                income (loss)</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="46" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">(707.5</div>
            </td>
            <td valign="bottom" width="16" style="border-bottom: white 3pt double;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="46" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">(1,381.5</div>
            </td>
            <td valign="bottom" width="16" style="border-bottom: white 3pt double;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="46" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">422.2</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="409">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Basic
                net income (loss) per share: </div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">&#160;</td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="409">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Income
                (loss) before cumulative effect of a change in accounting
                principle</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">(10.35</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">(20.57</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">6.18</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="409">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Cumulative
                effect of change in accounting principle</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">0.04</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="409">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Basic
                net income (loss) per share </div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="46" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">(10.31</div>
            </td>
            <td valign="bottom" width="16" style="border-bottom: white 3pt double;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="46" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">(20.57</div>
            </td>
            <td valign="bottom" width="16" style="border-bottom: white 3pt double;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="46" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">6.18</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="409">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Diluted
                net income (loss) per share:</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">&#160;</td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="409">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Income
                (loss) before cumulative effect of a change in
                accounting<br>principle</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">(10.35</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">(20.57</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">5.77</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="409">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Cumulative
                effect of change in accounting principle</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">0.04</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="409">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Diluted
                net income (loss) per share</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="46" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">(10.31</div>
            </td>
            <td valign="bottom" width="16" style="border-bottom: white 3pt double;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="46" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">(20.57</div>
            </td>
            <td valign="bottom" width="16" style="border-bottom: white 3pt double;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="46" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">5.77</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>

      </table>
    </div>
    <div style="MARGIN: 0pt" align="center"><br><br></div>
    <div style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 5pt; FONT-FAMILY: Times New (W1)" align="center"><font style="FONT-FAMILY: Times New (W1)"><i>The
      accompanying notes
      are an integral part of these consolidated financial
      statements.</i></font></div>
    <div style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 5pt" align="center"><font style="FONT-FAMILY: Times New Roman">F-9</font></div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">

<div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt" align="center">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
<strong><a name="f7"></a>LEAR
  CORPORATION AND SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 6.65pt" align="center"><strong>CONSOLIDATED
      STATEMENTS OF STOCKHOLDERS&#8217;
EQUITY</strong></div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="318">
            </td>
            <td width="12">
            </td>
            <td width="4">
            </td>
            <td width="30">
            </td>
            <td width="12">
            </td>
            <td width="4">
            </td>
            <td width="33">
            </td>
            <td width="12">
            </td>
            <td width="4">
            </td>
            <td width="30">
            </td>
            <td width="3">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="424">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="8" valign="bottom" width="178" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>December&#160;31,</strong></div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="424">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2006</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="51" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2005</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="47" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2004</strong></div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="424">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="8" valign="bottom" width="178">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center">(In
                millions, except share data)</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="424">
              <div style="MARGIN-TOP: 1.5pt; PADDING-LEFT: 6pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 9.5pt"><strong>Common
                Stock</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">&#160;</td>
            <td valign="bottom" width="4">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">&#160;&#160;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="424">
              <div style="MARGIN-TOP: 1.5pt; PADDING-LEFT: 6pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 9.5pt">Balance
                at beginning and end of period</div>
            </td>
            <td valign="bottom" width="16">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">$</div>
            </td>
            <td valign="bottom" width="40" style="border-bottom: #000000 3pt double;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">0.7</div>
            </td>
            <td valign="bottom" width="16">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">$</div>
            </td>
            <td valign="bottom" width="44" style="border-bottom: #000000 3pt double;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">0.7</div>
            </td>
            <td valign="bottom" width="16">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">$</div>
            </td>
            <td valign="bottom" width="40" style="border-bottom: #000000 3pt double;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">0.7</div>
            </td>
            <td valign="bottom" width="4">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">&#160;&#160;</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="424">
              <div style="MARGIN-TOP: 2.25pt; PADDING-LEFT: 6pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 11pt"><strong>Additional
                Paid-in Capital</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">&#160;</td>
            <td valign="bottom" width="4">
              <div style="MARGIN-TOP: 2.25pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 11pt">&#160;&#160;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="424">
              <div style="MARGIN-TOP: 1.5pt; PADDING-LEFT: 6pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 9.5pt">Balance
                at beginning of period</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">$</div>
            </td>
            <td valign="bottom" width="40">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">1,108.6</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">$</div>
            </td>
            <td valign="bottom" width="44">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">1,064.4</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">$</div>
            </td>
            <td valign="bottom" width="40">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">1,027.7</div>
            </td>
            <td valign="bottom" width="4">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">&#160;&#160;</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="424">
              <div style="MARGIN-TOP: 1.5pt; PADDING-LEFT: 6pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 9.5pt">Net
                proceeds from the issuance of 8,695,653&#160;shares of common
                stock&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">199.2</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="4">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">&#160;&#160;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="424">
              <div style="MARGIN-TOP: 1.5pt; PADDING-LEFT: 6pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 9.5pt">Stock-based
                compensation</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">30.7</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">43.8</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">26.4</div>
            </td>
            <td valign="bottom" width="4">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">&#160;&#160;</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="424">
              <div style="MARGIN-TOP: 1.5pt; PADDING-LEFT: 6pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 9.5pt">Cumulative
                effect of a change in accounting principle</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">(0.4</div>
            </td>
            <td valign="bottom" width="16">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">)</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="4">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">&#160;&#160;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="424">
              <div style="MARGIN-TOP: 1.5pt; PADDING-LEFT: 6pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 9.5pt">Tax
                benefit of stock options exercised</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">0.4</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">10.3</div>
            </td>
            <td valign="bottom" width="4">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">&#160;&#160;</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="424">
              <div style="MARGIN-TOP: 1.5pt; PADDING-LEFT: 6pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 9.5pt">Balance
                at end of period</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">$</div>
            </td>
            <td valign="bottom" width="40" style="border-bottom: #000000 3pt double;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">1,338.1</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">$</div>
            </td>
            <td valign="bottom" width="44" style="border-bottom: #000000 3pt double;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">1,108.6</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">$</div>
            </td>
            <td valign="bottom" width="40" style="border-bottom: #000000 3pt double;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">1,064.4</div>
            </td>
            <td valign="bottom" width="4">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">&#160;&#160;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="424">
              <div style="MARGIN-TOP: 2.25pt; PADDING-LEFT: 5.75pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -5.75pt; LINE-HEIGHT: 11pt"><strong>Treasury
                Stock</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">&#160;</td>
            <td valign="bottom" width="4">
              <div style="MARGIN-TOP: 2.25pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 11pt">&#160;&#160;</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="424">
              <div style="MARGIN-TOP: 1.5pt; PADDING-LEFT: 6pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 9.5pt">Balance
                at beginning of period</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">$</div>
            </td>
            <td valign="bottom" width="40">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">(225.5</div>
            </td>
            <td valign="bottom" width="16">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">)</div>
            </td>
            <td valign="bottom" width="6">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">$</div>
            </td>
            <td valign="bottom" width="44">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">(204.1</div>
            </td>
            <td valign="bottom" width="16">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">)</div>
            </td>
            <td valign="bottom" width="6">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">$</div>
            </td>
            <td valign="bottom" width="40">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">(110.8</div>
            </td>
            <td valign="bottom" width="4">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">) </div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="424">
              <div style="MARGIN-TOP: 1.5pt; PADDING-LEFT: 6pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 9.5pt">Issuances
                of 362,531&#160;shares at an average price of $42.40</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">15.3</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="4">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">&#160;&#160;</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="424">
              <div style="MARGIN-TOP: 1.5pt; PADDING-LEFT: 6pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 9.5pt">Purchases
                of 490,900&#160;shares at an average price of $51.75</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">(25.4</div>
            </td>
            <td valign="bottom" width="16">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">)</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="4">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">&#160;&#160;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="424">
              <div style="MARGIN-TOP: 1.5pt; PADDING-LEFT: 6pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 9.5pt">Issuances
                of 126,529&#160;shares at an average price of $31.99</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">4.0</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="4">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">&#160;&#160;</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="424">
              <div style="MARGIN-TOP: 1.5pt; PADDING-LEFT: 6pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 9.5pt">Purchases
                of 1,834,300&#160;shares at an average price of $53.29</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">(97.7</div>
            </td>
            <td valign="bottom" width="4">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">) </div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="424">
              <div style="MARGIN-TOP: 1.5pt; PADDING-LEFT: 6pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 9.5pt">Issuances
                of 395,126&#160;shares at an average price of $11.12 per share in
                settlement of<br>stock-based compensation</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">4.4</div>
            </td>
            <td valign="bottom" width="4">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">&#160;&#160;</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="424">
              <div style="MARGIN-TOP: 1.5pt; PADDING-LEFT: 6pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 9.5pt">Balance
                at end of period</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">$</div>
            </td>
            <td valign="bottom" width="40" style="border-bottom: #000000 3pt double;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">(210.2</div>
            </td>
            <td valign="bottom" width="16" style="border-bottom: white 3pt double;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">)</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">$</div>
            </td>
            <td valign="bottom" width="44" style="border-bottom: #000000 3pt double;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">(225.5</div>
            </td>
            <td valign="bottom" width="16" style="border-bottom: white 3pt double;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">)</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">$</div>
            </td>
            <td valign="bottom" width="40" style="border-bottom: #000000 3pt double;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">(204.1</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: white 3pt double;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">) </div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="424">
              <div style="MARGIN-TOP: 2.25pt; PADDING-LEFT: 5.75pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -5.75pt; LINE-HEIGHT: 11pt"><strong>Retained
                Earnings (Deficit)</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">&#160;</td>
            <td valign="bottom" width="4">
              <div style="MARGIN-TOP: 2.25pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 11pt">&#160;&#160;</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="424">
              <div style="MARGIN-TOP: 1.5pt; PADDING-LEFT: 6pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 9.5pt">Balance
                at beginning of period</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">$</div>
            </td>
            <td valign="bottom" width="40">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">361.8</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">$</div>
            </td>
            <td valign="bottom" width="44">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">1,810.5</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">$</div>
            </td>
            <td valign="bottom" width="40">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">1,441.8</div>
            </td>
            <td valign="bottom" width="4">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">&#160;&#160;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="424">
              <div style="MARGIN-TOP: 1.5pt; PADDING-LEFT: 6pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 9.5pt">Net
                income (loss)</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">(707.5</div>
            </td>
            <td valign="bottom" width="16">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">)</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">(1,381.5</div>
            </td>
            <td valign="bottom" width="16">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">)</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">422.2</div>
            </td>
            <td valign="bottom" width="4">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">&#160;&#160;</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="424">
              <div style="MARGIN-TOP: 1.5pt; PADDING-LEFT: 6pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 9.5pt">Dividends
                declared of $0.25&#160;per share in 2006, $1.00&#160;per share in 2005 and
                $0.80&#160;per share in 2004</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">(16.8</div>
            </td>
            <td valign="bottom" width="16">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">)</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">(67.2</div>
            </td>
            <td valign="bottom" width="16" style="border-bottom: white 0.5pt solid;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">)</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">(53.5</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: white 0.5pt solid;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">) </div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="424">
              <div style="MARGIN-TOP: 1.5pt; PADDING-LEFT: 6pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 9.5pt">Balance
                at end of period</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">$</div>
            </td>
            <td valign="bottom" width="40" style="border-bottom: #000000 3pt double;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">(362.5</div>
            </td>
            <td valign="bottom" width="16" style="border-bottom: #ccffcc 3pt double;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">)</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">$</div>
            </td>
            <td valign="bottom" width="44" style="border-bottom: #000000 3pt double;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">361.8</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">$</div>
            </td>
            <td valign="bottom" width="40" style="border-bottom: #000000 3pt double;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">1,810.5</div>
            </td>
            <td valign="bottom" width="4">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">&#160;&#160;</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="424">
              <div style="MARGIN-TOP: 2.25pt; PADDING-LEFT: 5.75pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -5.75pt; LINE-HEIGHT: 11pt"><strong>Accumulated
                Other Comprehensive Income (Loss)</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">&#160;</td>
            <td valign="bottom" width="4">
              <div style="MARGIN-TOP: 2.25pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 11pt">&#160;&#160;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="424">
              <div style="MARGIN-TOP: 1.5pt; PADDING-LEFT: 6pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 9.5pt">Defined
                Benefit Plans</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">&#160;</td>
            <td valign="bottom" width="4">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">&#160;&#160;</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="424">
              <div style="MARGIN-TOP: 1.5pt; PADDING-LEFT: 6pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 9.5pt">Balance
                at beginning of period</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">$</div>
            </td>
            <td valign="bottom" width="40">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">(115.0</div>
            </td>
            <td valign="bottom" width="16">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">)</div>
            </td>
            <td valign="bottom" width="6">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">$</div>
            </td>
            <td valign="bottom" width="44">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">(72.6</div>
            </td>
            <td valign="bottom" width="16">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">)</div>
            </td>
            <td valign="bottom" width="6">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">$</div>
            </td>
            <td valign="bottom" width="40">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">(62.2</div>
            </td>
            <td valign="bottom" width="4">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">) </div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="424">
              <div style="MARGIN-TOP: 1.5pt; PADDING-LEFT: 6pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 9.5pt">Defined
                benefit plan adjustments</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">17.4</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">(42.4</div>
            </td>
            <td valign="bottom" width="16">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">)</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">(10.4</div>
            </td>
            <td valign="bottom" width="4">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">) </div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="424">
              <div style="MARGIN-TOP: 1.5pt; PADDING-LEFT: 6pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 9.5pt">Adoption
                of SFAS&#160;No.&#160;158</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">(166.6</div>
            </td>
            <td valign="bottom" width="16">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">)</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="4">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">&#160;&#160;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="424">
              <div style="MARGIN-TOP: 1.5pt; PADDING-LEFT: 6pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 9.5pt">Balance
                at end of period</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">$</div>
            </td>
            <td valign="bottom" width="40" style="border-bottom: #000000 3pt double;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">(264.2</div>
            </td>
            <td valign="bottom" width="16" style="border-bottom: #ccffcc 3pt double;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">)</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">$</div>
            </td>
            <td valign="bottom" width="44" style="border-bottom: #000000 3pt double;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">(115.0</div>
            </td>
            <td valign="bottom" width="16" style="border-bottom: #ccffcc 3pt double;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">)</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">$</div>
            </td>
            <td valign="bottom" width="40" style="border-bottom: #000000 3pt double;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">(72.6</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: #ccffcc 3pt double;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">) </div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="424">
              <div style="MARGIN-TOP: 1.5pt; PADDING-LEFT: 6pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 9.5pt">Derivative
                Instruments and Hedging Activities</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">&#160;</td>
            <td valign="bottom" width="4">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">&#160;&#160;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="424">
              <div style="MARGIN-TOP: 1.5pt; PADDING-LEFT: 6pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 9.5pt">Balance
                at beginning of period</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">$</div>
            </td>
            <td valign="bottom" width="40">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">9.0</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">$</div>
            </td>
            <td valign="bottom" width="44">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">17.4</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">$</div>
            </td>
            <td valign="bottom" width="40">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">(13.7</div>
            </td>
            <td valign="bottom" width="4">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">) </div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="424">
              <div style="MARGIN-TOP: 1.5pt; PADDING-LEFT: 6pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 9.5pt">Derivative
                instruments and hedging activities adjustments</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">5.7</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">(8.4</div>
            </td>
            <td valign="bottom" width="16" style="border-bottom: white 0.5pt solid;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">)</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">31.1</div>
            </td>
            <td valign="bottom" width="4">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">&#160;&#160;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="424">
              <div style="MARGIN-TOP: 1.5pt; PADDING-LEFT: 6pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 9.5pt">Balance
                at end of period</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">$</div>
            </td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">14.7</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">$</div>
            </td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">9.0</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">$</div>
            </td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">17.4</div>
            </td>
            <td valign="bottom" width="4">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">&#160;&#160;</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="424">
              <div style="MARGIN-TOP: 1.5pt; PADDING-LEFT: 6pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 9.5pt">Cumulative
                Translation Adjustments</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">&#160;</td>
            <td valign="bottom" width="4">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">&#160;&#160;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="424">
              <div style="MARGIN-TOP: 1.5pt; PADDING-LEFT: 6pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 9.5pt">Balance
                at beginning of period</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">$</div>
            </td>
            <td valign="bottom" width="40">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">(86.8</div>
            </td>
            <td valign="bottom" width="16">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">)</div>
            </td>
            <td valign="bottom" width="6">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">$</div>
            </td>
            <td valign="bottom" width="44">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">65.6</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">$</div>
            </td>
            <td valign="bottom" width="40">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">(61.5</div>
            </td>
            <td valign="bottom" width="4">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">) </div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="424">
              <div style="MARGIN-TOP: 1.5pt; PADDING-LEFT: 6pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 9.5pt">Cumulative
                translation adjustments</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">90.7</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">(152.4</div>
            </td>
            <td valign="bottom" width="16" style="border-bottom: white 0.5pt solid;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">)</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">127.1</div>
            </td>
            <td valign="bottom" width="4">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">&#160;&#160;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="424">
              <div style="MARGIN-TOP: 1.5pt; PADDING-LEFT: 6pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 9.5pt">Balance
                at end of period</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">$</div>
            </td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">3.9</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">$</div>
            </td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">(86.8</div>
            </td>
            <td valign="bottom" width="16" style="border-bottom: #ccffcc 0.5pt solid;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">)</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">$</div>
            </td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">65.6</div>
            </td>
            <td valign="bottom" width="4">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">&#160;&#160;</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="424">
              <div style="MARGIN-TOP: 1.5pt; PADDING-LEFT: 6pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 9.5pt">Deferred
                Income Tax Asset</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">&#160;</td>
            <td valign="bottom" width="4">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">&#160;&#160;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="424">
              <div style="MARGIN-TOP: 1.5pt; PADDING-LEFT: 6pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 9.5pt">Balance
                at beginning of period</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">$</div>
            </td>
            <td valign="bottom" width="40">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">58.2</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">$</div>
            </td>
            <td valign="bottom" width="44">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">48.2</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">$</div>
            </td>
            <td valign="bottom" width="40">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">35.5</div>
            </td>
            <td valign="bottom" width="4">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">&#160;&#160;</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="424">
              <div style="MARGIN-TOP: 1.5pt; PADDING-LEFT: 6pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 9.5pt">Deferred
                income tax asset adjustments</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">23.3</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">10.0</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">12.7</div>
            </td>
            <td valign="bottom" width="4">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">&#160;&#160;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="424">
              <div style="MARGIN-TOP: 1.5pt; PADDING-LEFT: 6pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 9.5pt">Balance
                at end of period</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">$</div>
            </td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">81.5</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">$</div>
            </td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">58.2</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">$</div>
            </td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">48.2</div>
            </td>
            <td valign="bottom" width="4">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">&#160;&#160;</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="424">
              <div style="MARGIN-TOP: 1.5pt; PADDING-LEFT: 6pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 9.5pt">Accumulated
                other comprehensive income (loss)</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">$</div>
            </td>
            <td valign="bottom" width="40" style="border-bottom: #000000 3pt double;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">(164.1</div>
            </td>
            <td valign="bottom" width="16" style="border-bottom: white 3pt double;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">)</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">$</div>
            </td>
            <td valign="bottom" width="44" style="border-bottom: #000000 3pt double;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">(134.6</div>
            </td>
            <td valign="bottom" width="16" style="border-bottom: white 3pt double;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">)</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">$</div>
            </td>
            <td valign="bottom" width="40" style="border-bottom: #000000 3pt double;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">58.6</div>
            </td>
            <td valign="bottom" width="4">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">&#160;&#160;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="424">
              <div style="MARGIN-TOP: 2.25pt; PADDING-LEFT: 5.75pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -5.75pt; LINE-HEIGHT: 11pt"><strong>Total
                Stockholders&#8217; Equity</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 2.25pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 11pt">$</div>
            </td>
            <td valign="bottom" width="40" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 2.25pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 11pt" align="right">602.0</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 2.25pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 11pt">$</div>
            </td>
            <td valign="bottom" width="44" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 2.25pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 11pt" align="right">1,111.0</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 2.25pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 11pt">$</div>
            </td>
            <td valign="bottom" width="40" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 2.25pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 11pt" align="right">2,730.1</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN-TOP: 2.25pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 11pt">&#160;&#160;</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="424">
              <div style="MARGIN-TOP: 2.25pt; PADDING-LEFT: 5.75pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -5.75pt; LINE-HEIGHT: 11pt"><strong>Comprehensive
                Income (Loss)</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">&#160;</td>
            <td valign="bottom" width="4">
              <div style="MARGIN-TOP: 2.25pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 11pt">&#160;&#160;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="424">
              <div style="MARGIN-TOP: 1.5pt; PADDING-LEFT: 6pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 9.5pt">Net
                income (loss)</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">$</div>
            </td>
            <td valign="bottom" width="40">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">(707.5</div>
            </td>
            <td valign="bottom" width="16">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">)</div>
            </td>
            <td valign="bottom" width="6">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">$</div>
            </td>
            <td valign="bottom" width="44">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">(1,381.5</div>
            </td>
            <td valign="bottom" width="16">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">)</div>
            </td>
            <td valign="bottom" width="6">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">$</div>
            </td>
            <td valign="bottom" width="40">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">422.2</div>
            </td>
            <td valign="bottom" width="4">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">&#160;&#160;</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="424">
              <div style="MARGIN-TOP: 1.5pt; PADDING-LEFT: 6pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 9.5pt">Defined
                benefit plan adjustments</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">17.4</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">(42.4</div>
            </td>
            <td valign="bottom" width="16">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">)</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">(10.4</div>
            </td>
            <td valign="bottom" width="4">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">) </div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="424">
              <div style="MARGIN-TOP: 1.5pt; PADDING-LEFT: 6pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 9.5pt">Derivative
                instruments and hedging activities adjustments</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">5.7</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">(8.4</div>
            </td>
            <td valign="bottom" width="16">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">)</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">31.1</div>
            </td>
            <td valign="bottom" width="4">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">&#160;&#160;</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="424">
              <div style="MARGIN-TOP: 1.5pt; PADDING-LEFT: 6pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 9.5pt">Cumulative
                translation adjustments</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">90.7</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">(152.4</div>
            </td>
            <td valign="bottom" width="16">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">)</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">127.1</div>
            </td>
            <td valign="bottom" width="4">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">&#160;&#160;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="424">
              <div style="MARGIN-TOP: 1.5pt; PADDING-LEFT: 6pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 9.5pt">Deferred
                income tax asset adjustments</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">23.3</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">10.0</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt" align="right">12.7</div>
            </td>
            <td valign="bottom" width="4">
              <div style="FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">&#160;&#160;</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="424">
              <div style="MARGIN-TOP: 2.25pt; PADDING-LEFT: 5.75pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -5.75pt; LINE-HEIGHT: 11pt"><strong>Comprehensive
                Income (Loss)</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 2.25pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 11pt">$</div>
            </td>
            <td valign="bottom" width="40" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 2.25pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 11pt" align="right">(570.4</div>
            </td>
            <td valign="bottom" width="16" style="border-bottom: white 3pt double;">
              <div style="MARGIN-TOP: 2.25pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 11pt">)</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 2.25pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 11pt">$</div>
            </td>
            <td valign="bottom" width="44" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 2.25pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 11pt" align="right">(1,574.7</div>
            </td>
            <td valign="bottom" width="16" style="border-bottom: white 3pt double;">
              <div style="MARGIN-TOP: 2.25pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 11pt">)</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 2.25pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 11pt">$</div>
            </td>
            <td valign="bottom" width="40" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 2.25pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 11pt" align="right">582.7</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN-TOP: 2.25pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt">&#160;</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="MARGIN-TOP: 10.65pt; MARGIN-BOTTOM: 5.35pt" align="center"><br><br></div>
    <div style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 5pt; FONT-FAMILY: Times New (W1)" align="center"><font style="FONT-FAMILY: Times New (W1)"><i>The
      accompanying notes
      are an integral part of these consolidated financial
      statements.</i></font></div>
    <div style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 5pt" align="center"><font style="FONT-FAMILY: Times New Roman">F-10</font></div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 6.65pt; PAGE-BREAK-BEFORE: always" align="center">
<p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
</div>

<div style="MARGIN: 0pt" align="center"><strong><a name="f8"></a>LEAR CORPORATION
  AND SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 6.65pt" align="center"><strong>CONSOLIDATED
      STATEMENTS OF CASH FLOWS</strong></div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="312">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="33">
            </td>
            <td width="15">
            </td>
            <td width="5">
            </td>
            <td width="33">
            </td>
            <td width="15">
            </td>
            <td width="5">
            </td>
            <td width="26">
            </td>
            <td width="3">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="416">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="8" valign="bottom" width="186" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>For
                the Year Ended
                December&#160;31,</strong></div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="416">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="51" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2006</strong></div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td colspan="2" valign="bottom" width="51" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2005</strong></div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td colspan="2" valign="bottom" width="41" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2004</strong></div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="416">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="8" valign="bottom" width="186">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center">(In
                millions)</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="416">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt"><strong>Cash
                Flows from Operating Activities:</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">&#160;</td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="416">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Net
                income (loss)</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">(707.5</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">(1,381.5</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt" align="center">$</div>
            </td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">422.2</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="416">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Adjustments
                to reconcile net income (loss) to net cash provided by operating
                activities&#160;&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">&#160;</td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="416">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Cumulative
                effect of a change in accounting principle</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">(2.9</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="416">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Goodwill
                impairment charges</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">2.9</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">1,012.8</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="416">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Loss
                on divestiture of Interior business</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">636.0</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="416">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Fixed
                asset impairment charges</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">15.8</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">97.4</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">3.0</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="416">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Deferred
                tax provision (benefit)</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">(55.0</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">44.7</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">8.7</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="416">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Equity
                in net (income) loss of affiliates</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">(16.2</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">51.4</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">(2.6</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="416">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Depreciation
                and amortization</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">392.2</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">393.4</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">355.1</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="416">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Net
                change in recoverable customer engineering and tooling</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">194.9</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">(112.5</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">(32.5</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="416">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Net
                change in working capital items</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">(110.1</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">9.7</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">(62.4</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="416">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Net
                change in sold accounts receivable</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">(178.0</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">411.1</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">(70.4</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="416">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Other,
                net</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">113.2</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">34.3</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="35" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">54.8</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="416">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 30pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Net
                cash provided by operating activities</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">285.3</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">560.8</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="35" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">675.9</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="416">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt"><strong>Cash
                Flows from Investing Activities:</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">&#160;</td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="416">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Additions
                to property, plant and equipment</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">(347.6</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">(568.4</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">(429.0</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="416">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Cost
                of acquisitions, net of cash acquired</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">(30.5</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">(11.8</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">(103.0</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="416">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Net
                proceeds from disposition of businesses and other assets</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">65.9</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">33.3</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">56.3</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="416">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Other,
                net</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">5.3</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="35" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">3.2</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="416">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 30pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Net
                cash used in investing activities</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(312.2</div>
            </td>
            <td valign="bottom" width="21" style="border-bottom: white 0.5pt solid;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(541.6</div>
            </td>
            <td valign="bottom" width="21" style="border-bottom: white 0.5pt solid;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="35" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(472.5</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: white 0.5pt solid;">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="416">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt"><strong>Cash
                Flows from Financing Activities:</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">&#160;</td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="416">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Issuance
                of senior notes</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">900.0</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">399.2</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="416">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Repayment
                of senior notes</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">(1,356.9</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">(600.0</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="416">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Primary
                credit facility borrowings, net</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">597.0</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">400.0</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="416">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Other
                long-term debt repayments, net</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">(36.5</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">(32.7</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">(49.4</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="416">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Short-term
                debt repayments, net</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">(11.8</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">(23.8</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">(29.8</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="416">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Net
                proceeds from the sale of common stock</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">199.2</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="416">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Dividends
                paid</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">(16.8</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">(67.2</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">(68.0</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="416">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Proceeds
                from exercise of stock options</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">0.2</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">4.7</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">24.4</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="416">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Repurchase
                of common stock</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">(25.4</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">(97.7</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="416">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Increase
                (decrease) in drafts</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">3.0</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">(3.3</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">(12.6</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="416">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Other,
                net</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">0.7</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="35" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="416">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 30pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Net
                cash provided by (used in) financing activities</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">277.4</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(347.0</div>
            </td>
            <td valign="bottom" width="21" style="border-bottom: #ccffcc 0.5pt solid;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="35" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">166.1</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="416">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Effect
                of foreign currency translation</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">54.9</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(59.8</div>
            </td>
            <td valign="bottom" width="21" style="border-bottom: white 0.5pt solid;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="35" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">46.1</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="416">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt"><strong>Net
                Change in Cash and Cash Equivalents</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">305.4</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(387.6</div>
            </td>
            <td valign="bottom" width="21" style="border-bottom: #ccffcc 0.5pt solid;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="35" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">415.6</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="416">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt"><strong>Cash
                and Cash Equivalents at Beginning of Year</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">197.3</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">584.9</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="35" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">169.3</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="416">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt"><strong>Cash
                and Cash Equivalents at End of Year</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="44" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">502.7</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="44" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">197.3</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="center">$</div>
            </td>
            <td valign="bottom" width="35" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">584.9</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="416">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt"><strong>Changes
                in Working Capital:</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">&#160;</td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="416">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Accounts
                receivable</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">153.2</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">(250.3</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt" align="center">$</div>
            </td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">(147.7</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="416">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Inventories</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">29.4</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">(76.9</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">(7.0</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="416">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Accounts
                payable</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">(358.9</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">298.1</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">189.8</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="416">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Accrued
                liabilities and other</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">66.2</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">38.8</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="35" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(97.5</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="416">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Net
                change in working capital items</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="44" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">(110.1</div>
            </td>
            <td valign="bottom" width="21" style="border-bottom: #ccffcc 3pt double;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="44" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">9.7</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="center">$</div>
            </td>
            <td valign="bottom" width="35" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">(62.4</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: #ccffcc 3pt double;">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="416">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt"><strong>Supplementary
                Disclosure:</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">&#160;</td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="416">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Cash
                paid for interest</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="44" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">218.5</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="44" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">172.6</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="center">$</div>
            </td>
            <td valign="bottom" width="35" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">153.5</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="416">
              <div style="PADDING-LEFT: 6pt; MARGIN: 0pt; TEXT-INDENT: -6pt">Cash
                paid
                for income taxes, net of refunds received of $30.7 in 2006,<br>$76.7 in
                2005 and $52.7 in 2004</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="44" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">84.8</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="44" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">112.7</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="center">$</div>
            </td>
            <td valign="bottom" width="35" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">140.0</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>

      </table>
    </div>
    <div style="MARGIN-TOP: 2.65pt; MARGIN-BOTTOM: 0pt" align="center"><br><br><br><br><br><br><br><br><br></div>
    <div style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 5pt; FONT-FAMILY: Times New (W1)" align="center"><font style="FONT-FAMILY: Times New (W1)"><i>The
      accompanying notes
      are an integral part of these consolidated financial
      statements.</i></font></div>
    <div style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 5pt" align="center"><font style="FONT-FAMILY: Times New Roman">F-11</font></div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
</div>
    <div style="MARGIN: 0pt"><br></div>

<div style="MARGIN: 0pt" align="center"><strong><a name="f9"></a>LEAR CORPORATION
  AND SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>(1) Basis of
      Presentation</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      consolidated financial statements include the accounts of Lear Corporation
      (&#8220;Lear&#8221; or the &#8220;Parent&#8221;), a Delaware corporation and the wholly owned and less
      than wholly owned subsidiaries controlled by Lear (collectively, the &#8220;Company&#8221;).
      In addition, Lear consolidates variable interest entities in which it bears
      a
      majority of the risk of the entities&#8217; potential losses or stands to gain from a
      majority of the entities&#8217; expected returns. Investments in affiliates in which
      Lear does not have control, but does have the ability to exercise significant
      influence over operating and financial policies, are accounted for under the
      equity method (Note 6, &#8220;Investments in Affiliates and Other Related Party
      Transactions&#8221;). </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      Company and its affiliates design and manufacture complete automotive seat
      systems, electrical distribution systems and various electronic products. The
      Company also supplies automotive interior systems and components, including
      instrument panels and cockpit systems, headliners and overhead systems, door
      panels and flooring and acoustic systems. The Company&#8217;s main customers are
      automotive original equipment manufacturers. The Company operates facilities
      worldwide (Note 13, &#8220;Segment Reporting&#8221;). </div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>(2) Summary of
      Significant Accounting Policies</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>Assets and
      Liabilities of Business Held for Sale </i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">In
      accordance with Statement of Financial Accounting Standards (&#8220;SFAS&#8221;) No. 144,
&#8220;Accounting for the Impairment or Disposal of Long-Lived Assets,&#8221; the Company
      classifies the assets and liabilities of a business as held for sale when
      management approves and commits to a formal plan of sale and it is probable
      that
      the sale will be completed. The carrying value of the net assets of the business
      held for sale are then recorded at the lower of their carrying value or fair
      market value, less costs to sell. As of December&#160;31, 2006, the assets and
      liabilities of the Company&#8217;s North American interior business are classified as
      held for sale and all prior period balance sheet information has been restated
      (Note 3, &#8220;Divestiture of Interior Business&#8221;). </div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>Cash and Cash
      Equivalents </i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Cash
      and
      cash equivalents include all highly liquid investments with original maturities
      of ninety days or less. </div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>Accounts Receivable
      </i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      Company records accounts receivable as its products are shipped to its
      customers. The Company&#8217;s customers are the major automotive manufacturers in the
      world. The Company records accounts receivable reserves for known collectibility
      issues, as such issues relate to specific transactions or customer balances.
      As
      of December&#160;31, 2006 and 2005, accounts receivable are reflected net of
      reserves of $14.9&#160;million and $20.4&#160;million, respectively. The Company
      writes off accounts receivable when it becomes apparent based upon age or
      customer circumstances that such amounts will not be collected. Generally,
      the
      Company does not require collateral for its accounts receivable. </div>
    <div style="MARGIN: 0pt" align="center"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-12</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
</div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt" align="center"><strong>LEAR CORPORATION AND
      SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>(2) Summary of
      Significant Accounting Policies &#8211; (continued)</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>Inventories
</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 6.65pt; TEXT-INDENT: 18pt">Inventories
      are stated at the lower of cost or market. Cost is determined using the
      first-in, first-out method. Finished goods and work-in-process inventories
      include material, labor and manufacturing overhead costs. The Company records
      inventory reserves for inventory in excess of production and/or forecasted
      requirements and for obsolete inventory in production and service inventories.
      As of December&#160;31, 2006 and 2005, inventories are reflected net of reserves
      of $87.1&#160;million and $85.7&#160;million, respectively. A summary of
      inventories is shown below (in millions): </div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="385">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="23">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="24">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="513">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="5" valign="bottom" width="94" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>December&#160;31,</strong></div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="513">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="38">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2006</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="38" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2005</strong></div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="513">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="31" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="32">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="513">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Raw
                materials&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="31">
              <div style="MARGIN: 0pt" align="right">439.9</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="32">
              <div style="MARGIN: 0pt" align="right">449.2</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="513">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Work-in-process</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="31">
              <div style="MARGIN: 0pt" align="right">35.6</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="32">
              <div style="MARGIN: 0pt" align="right">36.7</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="513">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Finished
                goods</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="31" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">106.0</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="32" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">109.7</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="513">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Inventories</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="31" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">581.5</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="32" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">595.6</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>Pre-Production
      Costs Related to Long-Term Supply Arrangements </i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      Company incurs pre-production engineering, research and development (&#8220;ER&amp;D&#8221;)
      and tooling costs related to the products produced for its customers under
      long-term supply agreements. The Company expenses all pre-production ER&amp;D
      costs for which reimbursement is not contractually guaranteed by the customer.
      In addition, the Company expenses all pre-production tooling costs related
      to
      customer-owned tools for which reimbursement is not contractually guaranteed
      by
      the customer or for which the customer has not provided a non-cancelable right
      to use the tooling. During 2006 and 2005, the Company capitalized
      $122.0&#160;million and $227.2&#160;million, respectively, of pre-production
      ER&amp;D costs for which reimbursement is contractually guaranteed by the
      customer. During 2006 and 2005, the Company also capitalized $449.0&#160;million
      and $638.6&#160;million, respectively, of pre-production tooling costs related
      to customer-owned tools for which reimbursement is contractually guaranteed
      by
      the customer or for which the customer has provided a non-cancelable right
      to
      use the tooling. These amounts are included in other current and other long-term
      assets in the consolidated balance sheets. During 2006 and 2005, the Company
      collected $765.0&#160;million and $715.8&#160;million, respectively, of cash
      related to ER&amp;D and tooling costs. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">During
      2006 and 2005, the Company capitalized $17.4&#160;million and
      $44.4&#160;million, respectively, of Company-owned tooling. These amounts are
      included in property, plant and equipment, net, in the consolidated balance
      sheets. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 6.65pt; TEXT-INDENT: 18pt">The
      classification of capitalized pre-production ER&amp;D and tooling costs related
      to long-term supply agreements is shown below (in millions): </div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="386">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="23">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="23">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="514">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td colspan="5" valign="bottom" width="92" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>December&#160;31,</strong></div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="514">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td colspan="2" valign="bottom" width="37">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2006</strong></div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td colspan="2" valign="bottom" width="37" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2005</strong></div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="514">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="30" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="30">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="514">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Current</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="30">
              <div style="MARGIN: 0pt" align="right">87.7</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="30">
              <div style="MARGIN: 0pt" align="right">160.4</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="514">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Long-term</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="30" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">116.2</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="30" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">146.9</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="514">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Recoverable
                customer engineering and
                tooling&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="30" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">203.9</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="30" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">307.3</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Gains
      and
      losses related to ER&amp;D and tooling projects are reviewed on an aggregate
      program basis. Net gains on projects are deferred and recognized over the life
      of the related long-term supply agreement. Net losses on projects are recognized
      as costs are incurred. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-13</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
</div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt" align="center"><strong>LEAR CORPORATION AND
      SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>(2) Summary of
      Significant Accounting Policies &#8211; (continued)</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>Property, Plant
      and
      Equipment</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 6.65pt; TEXT-INDENT: 18pt">Property,
      plant and equipment is stated at cost. Depreciable property is depreciated
      over
      the estimated useful lives of the assets, using principally the straight-line
      method as follows: </div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="393">
            </td>
            <td width="13">
            </td>
            <td width="60">
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="525">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Buildings
                and
                improvements&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="81">
              <div style="MARGIN: 0pt" align="right">20 to 40 years</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="525">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Machinery
                and equipment</div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="81">
              <div style="MARGIN: 0pt" align="right">5 to 15
                years</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 6.65pt; TEXT-INDENT: 18pt">A
      summary of property, plant and equipment is shown below (in millions): </div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="357">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="33">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="33">
            </td>
            <td width="3">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="476">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="5" valign="bottom" width="119" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>December&#160;31,</strong></div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="476">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="51">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2006</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="51" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2005</strong></div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="476">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">&#160;</td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="476">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Land&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">131.0</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">131.5</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="476">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Buildings
                and improvements</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">516.7</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">572.8</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="476">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Machinery
                and equipment</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">2,077.5</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">2,116.0</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="476">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Construction
                in progress</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">60.7</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">56.1</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="476">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Total
                property, plant and equipment</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">2,785.9</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">2,876.4</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="476">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Less&#160;&#8212;
                accumulated depreciation</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(1,314.2</div>
            </td>
            <td valign="bottom" width="16" style="border-bottom: white 0.5pt solid;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(1,261.7</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: white 0.5pt solid;">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="476">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Net
                property, plant and equipment</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="44" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">1,471.7</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="44" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">1,614.7</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>

      </table>
    </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Depreciation
      expense was $387.0&#160;million, $388.5&#160;million and $350.6&#160;million for
      the years ended December&#160;31, 2006, 2005 and 2004, respectively. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Costs
      associated with the repair and maintenance of the Company&#8217;s property, plant and
      equipment are expensed as incurred. Costs associated with improvements which
      extend the life, increase the capacity or improve the efficiency or safety
      of
      the Company&#8217;s property, plant and equipment are capitalized and depreciated over
      the remaining life of the related asset. </div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>Impairment of
      Goodwill</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Goodwill
      is not amortized but is tested for impairment on at least an annual basis.
      Impairment testing is required more often than annually if an event or
      circumstance indicates that an impairment, or decline in value, may have
      occurred. In conducting its impairment testing, the Company compares the fair
      value of each of its reporting units to the related net book value. If the
      fair
      value of a reporting unit exceeds its net book value, goodwill is considered
      not
      to be impaired. If the net book value of a reporting unit exceeds its fair
      value, an impairment loss is measured and recognized. The Company conducts
      its
      annual impairment testing on the first day of the fourth quarter each year.
      </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      Company utilizes an income approach to estimate the fair value of each of its
      reporting units. The income approach is based on projected debt-free cash flow
      which is discounted to the present value using discount factors that consider
      the timing and risk of cash flows. The Company believes that this approach
      is
      appropriate because it provides a fair value estimate based upon the reporting
      unit&#8217;s expected long-term operating cash flow performance. This approach also
      mitigates the impact of cyclical trends that occur in the industry. Fair value
      is estimated using recent automotive industry and specific platform production
      volume projections, which are based on both third-party and internally-developed
      forecasts, as well as commercial, wage and benefit, inflation and discount
      rate
      assumptions. Other significant assumptions include terminal value growth rates,
      terminal value margin rates, future capital expenditures and changes in future
      working capital requirements. While there are inherent uncertainties related
      to
      the assumptions used and to management&#8217;s application of these assumptions to
      this analysis, the Company believes that the income approach provides a
      reasonable estimate of the fair value of its reporting units. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-14</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
</div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt" align="center"><strong>LEAR CORPORATION AND
      SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>(2) Summary of
      Significant Accounting Policies &#8211; (continued)</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      Company&#8217;s 2006 annual goodwill impairment analysis, completed as of
      October&#160;1, resulted in no impairment. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">During
      the third and fourth quarters of 2005, events occurred which indicated a
      significant decline in the fair value of the Company&#8217;s interior segment, as well
      as an impairment of the related goodwill. These events included unfavorable
      operating results, primarily as a result of higher raw material costs, lower
      production volumes on key platforms, industry overcapacity, insufficient
      customer pricing and changes in certain customers&#8217; sourcing strategies, as well
      as the Company&#8217;s decision to evaluate strategic alternatives with respect to
      this segment. The Company evaluated the net book value of goodwill within its
      interior segment by comparing the fair value of the reporting unit to the
      related net book value. As a result, the Company recorded total goodwill
      impairment charges of $1.0&#160;billion in 2005 related to the interior segment.
      The Company also recognized a $2.9&#160;million goodwill impairment charge
      related to this segment during the second quarter of 2006. The goodwill resulted
      from a $19.0&#160;million purchase price adjustment for an indemnification claim
      related to the Company&#8217;s acquisition of UT Automotive, Inc. (&#8220;UT Automotive&#8221;)
      from United Technologies Corporation (&#8220;UTC&#8221;) in May&#160;1999. The purchase
      price adjustment was allocated to the Company&#8217;s electronic and electrical and
      interior segments (Note 12, &#8220;Commitments and Contingencies&#8221;). </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 6.65pt; TEXT-INDENT: 18pt">A
      summary of the changes in the carrying amount of goodwill, by reportable
      operating segment, for each of the two years in the period ended
      December&#160;31, 2006, is shown below (in millions): </div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="252">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="30">
            </td>
            <td width="12">
            </td>
            <td width="9">
            </td>
            <td width="40">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="33">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="33">
            </td>
            <td width="3">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="337">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Seating</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="66" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Electronic
                and<br>Electrical</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="51" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Interior</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="51" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Total</strong></div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="337">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="54">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">&#160;</td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="337">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Balance
                as of January&#160;1,
                2005&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">1,075.7</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="12">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="54">
              <div style="MARGIN: 0pt" align="right">945.9</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">1,017.8</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">3,039.4</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="337">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Goodwill
                impairment charges</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="54">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">(1,012.8</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">(1,012.8</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="337">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Foreign
                currency translation and other</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(41.5</div>
            </td>
            <td valign="bottom" width="16" style="border-bottom: #ccffcc 0.5pt solid;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="12" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="54" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(40.3</div>
            </td>
            <td valign="bottom" width="16" style="border-bottom: #ccffcc 0.5pt solid;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(5.0</div>
            </td>
            <td valign="bottom" width="16" style="border-bottom: #ccffcc 0.5pt solid;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(86.8</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: #ccffcc 0.5pt solid;">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="337">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Balance
                as of December&#160;31, 2005</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="40" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">1,034.2</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="12" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="54" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">905.6</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="44" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="44" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">1,939.8</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="337">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Purchase
                price adjustment</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="54">
              <div style="MARGIN: 0pt" align="right">16.1</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">2.9</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">19.0</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="337">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Goodwill
                impairment charges</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="54">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">(2.9</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">(2.9</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="337">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Foreign
                currency translation and other</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">26.5</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="12" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="54" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">14.3</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">40.8</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="337">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Balance
                as of December&#160;31, 2006</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="40" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">1,060.7</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="12" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="54" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">936.0</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="44" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="44" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">1,996.7</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>

      </table>
    </div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>Intangible
      Assets</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 6.65pt; TEXT-INDENT: 18pt">The
      Company&#8217;s intangible assets acquired through business acquisitions are valued
      based on independent appraisals. A summary of intangible assets as of
      December&#160;31, 2006 and 2005, is shown below (in millions): </div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="247">
            </td>
            <td width="12">
            </td>
            <td width="6">
            </td>
            <td width="25">
            </td>
            <td width="12">
            </td>
            <td width="8">
            </td>
            <td width="39">
            </td>
            <td width="16">
            </td>
            <td width="10">
            </td>
            <td width="38">
            </td>
            <td width="12">
            </td>
            <td width="37">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="329">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="43" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Gross<br>Carrying<br>Value</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="64" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Accumulated<br>Amortization</strong></div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td colspan="2" valign="bottom" width="64" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Net<br>Carrying<br>Value</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Weighted<br>Average<br>Useful
                Life<br>(Years)</strong></div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="329">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="33">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="11">&#160;</td>
            <td valign="bottom" width="52">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="13">&#160;</td>
            <td valign="bottom" width="50">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="50">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="329">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Technology&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="9">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="33">
              <div style="MARGIN: 0pt" align="right">2.8</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="11">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">(0.8</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="13">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">2.4</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">10.0</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="329">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Customer
                contracts</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="33">
              <div style="MARGIN: 0pt" align="right">23.0</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="11">&#160;</td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">(8.4</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="13">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">14.6</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">7.7</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="329">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Customer
                relationships</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="33" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">29.8</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="11" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="52" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(4.5</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="13" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">25.3</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">19.0</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="329">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Balance
                as of December&#160;31, 2006</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="33" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">55.6</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="11" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="52" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">(13.7</div>
            </td>
            <td valign="bottom" width="21" style="border-bottom: white 3pt double;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="13" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="50" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">41.9</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="50" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">14.7</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="MARGIN: 5.35pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-15</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
</div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 6.65pt"><br><br><br></div>
    <div>&#160;</div>
    <div style="MARGIN: 0pt" align="center"><strong>LEAR CORPORATION AND
      SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 6.65pt"><strong>(2) Summary of
      Significant Accounting Policies &#8211; (continued)</strong></div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="260">
            </td>
            <td width="13">
            </td>
            <td width="7">
            </td>
            <td width="25">
            </td>
            <td width="13">
            </td>
            <td width="11">
            </td>
            <td width="36">
            </td>
            <td width="16">
            </td>
            <td width="7">
            </td>
            <td width="25">
            </td>
            <td width="13">
            </td>
            <td width="38">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="347">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td colspan="2" valign="bottom" width="43" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Gross<br>Carrying<br>Value</strong></div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td colspan="2" valign="bottom" width="63" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Accumulated<br>Amortization</strong></div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td colspan="2" valign="bottom" width="43" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Net<br>Carrying<br>Value</strong></div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="51" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Weighted<br>Average<br>Useful
                Life<br>(Years)</strong></div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="347">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="34">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="15">&#160;</td>
            <td valign="bottom" width="48">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="34">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="51">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="347">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Technology&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="9">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">2.8</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="15">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="48">
              <div style="MARGIN: 0pt" align="right">(0.4</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="9">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">2.4</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">10.0</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="347">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Customer
                contracts</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">20.8</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="15">&#160;</td>
            <td valign="bottom" width="48">
              <div style="MARGIN: 0pt" align="right">(4.9</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">15.9</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">7.7</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="347">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Customer
                relationships</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="9" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="34" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">27.2</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="15" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="48" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(2.4</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="9" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="34" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">24.8</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="51" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">18.8</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="347">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Balance
                as of December&#160;31, 2005</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="9" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="34" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">50.8</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="15" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="48" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">(7.7</div>
            </td>
            <td valign="bottom" width="21" style="border-bottom: white 3pt double;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="9" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="34" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">43.1</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="51" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">14.2</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 11pt">Excluding
      the impact of any future acquisitions, the Company&#8217;s estimated annual
      amortization expense is approximately $5.0&#160;million in each of the three
      succeeding years, decreasing to approximately $4.5 and $4.0&#160;million in the
      two years thereafter. </div>
    <div style="MARGIN-TOP: 8.35pt; MARGIN-BOTTOM: 0pt"><strong><i>Impairment
      of
      Long-Lived Assets</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 11pt">The
      Company monitors its long-lived assets for impairment indicators on an ongoing
      basis in accordance with SFAS No. 144, &#8220;Accounting for the Impairment or
      Disposal of Long-Lived Assets.&#8221; If impairment indicators exist, the Company
      performs the required analysis and records impairment charges in accordance
      with
      SFAS No. 144. In conducting its analysis, the Company compares the undiscounted
      cash flows expected to be generated from the long-lived assets to the related
      net book values. If the undiscounted cash flows exceed the net book value,
      the
      long-lived assets are considered not to be impaired. If the net book value
      exceeds the undiscounted cash flows, an impairment loss is measured and
      recognized. An impairment loss is measured as the difference between the net
      book value and the fair value of the long-lived assets. Fair value is estimated
      based upon either discounted cash flow analyses or estimated salvage values.
      Cash flows are estimated using internal budgets based on recent sales data,
      independent automotive production volume estimates and customer commitments,
      as
      well as assumptions related to discount rates. Changes in economic or operating
      conditions impacting these estimates and assumptions could result in the
      impairment of long-lived assets. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 11pt">The
      Company recorded fixed asset impairment charges related to certain operating
      locations within its interior segment of $10.0&#160;million and
      $82.3&#160;million in the years ended December&#160;31, 2006 and 2005,
      respectively. The remaining fixed assets of the Company&#8217;s North American
      interior business were written down to zero in the fourth quarter of 2006 as
      a
      result of entering into the agreement relating to the divestiture of the North
      American interior business (Note 3, &#8220;Divestiture of Interior Business&#8221;). </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 11pt">In
      the years ended December&#160;31, 2006 and 2005, the Company also recognized
      fixed asset impairment charges of $5.8&#160;million and $15.1&#160;million,
      respectively, in conjunction with its restructuring actions. In the year ended
      December&#160;31, 2004, the Company recognized fixed asset impairment charges of
      $3.0&#160;million related to certain facility consolidations. See Note 5,
&#8220;Restructuring.&#8221; The Company has certain other facilities that have generated
      operating losses in recent years. The results of the related impairment analyses
      indicated that impairment of the fixed assets was not required. However, the
      Company will continue to monitor the operating plans of these facilities for
      potential impairment. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 11pt">These
      fixed asset impairment charges are recorded in cost of sales in the consolidated
      statements of operations for the years ended December&#160;31, 2006, 2005 and
      2004. </div>
    <div style="MARGIN-TOP: 8.35pt; MARGIN-BOTTOM: 0pt"><strong><i>Revenue
      Recognition and Sales Commitments</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 11pt">The
      Company enters into agreements with its customers to produce products at the
      beginning of a vehicle&#8217;s life. Although such agreements do not provide for
      minimum quantities, once the Company enters into such agreements, the Company
      is
      generally required to fulfill its customers&#8217; purchasing requirements for the
      entire production life of the vehicle. These agreements generally may be
      terminated by the customer at any time. Historically, terminations of these
      agreements have been minimal. In certain instances, the Company may be committed
      under existing agreements to supply products to its customers at selling prices
      which are not sufficient to cover the direct cost to produce such products.
      In
      such situations, the Company recognizes losses as they are incurred. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 11pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-16</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
</div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt" align="center"><strong>LEAR CORPORATION AND
      SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 6.65pt"><strong>(2) Summary of
      Significant Accounting Policies &#8211; (continued)</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 11pt">The
      Company receives blanket purchase orders from its customers on an annual basis.
      Generally, each purchase order provides the annual terms, including pricing,
      related to a particular vehicle model. Purchase orders do not specify
      quantities. The Company recognizes revenue based on the pricing terms included
      in its annual purchase orders as its products are shipped to its customers.
      The
      Company is asked to provide its customers with annual cost reductions as part
      of
      certain agreements. The Company accrues for such amounts as a reduction of
      revenue as its products are shipped to its customers. In addition, the Company
      has ongoing adjustments to its pricing arrangements with its customers based
      on
      the related content, the cost of its products and other commercial factors.
      Such
      pricing accruals are adjusted as they are settled with the Company&#8217;s customers.
</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 11pt">Amounts
      billed to customers related to shipping and handling costs are included in
      net
      sales in the consolidated statements of operations. Shipping and handling costs
      are included in cost of sales in the consolidated statements of operations.
      </div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>Cost of Sales
      and
      Selling, General and Administrative Expenses</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 11pt">Cost
      of sales includes material, labor and overhead costs associated with the
      manufacture and distribution of the Company&#8217;s products. Distribution costs
      include inbound freight costs, purchasing and receiving costs, inspection costs,
      warehousing costs and other costs of the Company&#8217;s distribution network.
      Selling, general and administrative expenses include selling, research and
      development and administrative costs not directly associated with the
      manufacture and distribution of the Company&#8217;s products. </div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>Research and
      Development</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 11pt">Costs
      incurred in connection with the development of new products and manufacturing
      methods, to the extent not recoverable from the Company&#8217;s customers, are charged
      to selling, general and administrative expenses as incurred. These costs
      amounted to $169.8&#160;million, $174.0&#160;million and $197.6&#160;million for
      the years ended December&#160;31, 2006, 2005 and 2004, respectively. </div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>Other Expense,
      Net</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 6.65pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 11pt">Other
      expense includes state and local non-income related taxes, foreign exchange
      gains and losses, discounts and expenses associated with the Company&#8217;s
      asset-based securitization and factoring facilities, losses on the
      extinguishment of debt (see Note 8, &#8220;Long-Term Debt&#8221;), gains and losses on the
      sales of fixed assets and other miscellaneous income and expense. A summary
      of
      other expense is shown below (in millions): </div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="335">
            </td>
            <td width="14">
            </td>
            <td width="5">
            </td>
            <td width="32">
            </td>
            <td width="15">
            </td>
            <td width="5">
            </td>
            <td width="20">
            </td>
            <td width="15">
            </td>
            <td width="5">
            </td>
            <td width="20">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="446">&#160;</td>
            <td valign="bottom" width="19">&#160;</td>
            <td colspan="8" valign="bottom" width="158" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>For
                the Year Ended<br>December
                31,</strong></div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="446">&#160;</td>
            <td valign="bottom" width="19">&#160;</td>
            <td colspan="2" valign="bottom" width="49">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2006</strong></div>
            </td>
            <td valign="bottom" width="20">&#160;</td>
            <td colspan="2" valign="bottom" width="33">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2005</strong></div>
            </td>
            <td valign="bottom" width="20">&#160;</td>
            <td colspan="2" valign="bottom" width="34" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2004</strong></div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="446">&#160;</td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="6" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="43" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="20">&#160;</td>
            <td valign="bottom" width="6" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="27" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="20">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="27">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="446">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Other
                expense&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="19">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="43">
              <div style="MARGIN: 0pt" align="right">101.3</div>
            </td>
            <td valign="bottom" width="20">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="27">
              <div style="MARGIN: 0pt" align="right">41.8</div>
            </td>
            <td valign="bottom" width="20">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="27">
              <div style="MARGIN: 0pt" align="right">38.6</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="446">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Other
                income</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="43" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(15.6</div>
            </td>
            <td valign="bottom" width="20" style="border-bottom: white 0.5pt solid;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="27" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(3.8</div>
            </td>
            <td valign="bottom" width="20" style="border-bottom: white 0.5pt solid;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="27" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="446">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Other
                expense, net</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="43" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">85.7</div>
            </td>
            <td valign="bottom" width="20">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="27" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">38.0</div>
            </td>
            <td valign="bottom" width="20">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="27" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">38.6</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>Foreign Currency
      Translation</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 11pt">With
      the exception of foreign subsidiaries operating in highly inflationary
      economies, which are measured in U.S. dollars, assets and liabilities of foreign
      subsidiaries are translated into U.S. dollars at the foreign exchange rates
      in
      effect at the end of the period. Revenues and expenses of foreign subsidiaries
      are translated using an average of the foreign exchange rates in effect during
      the period. Translation adjustments that arise from translating a foreign
      subsidiary&#8217;s financial statements from the functional currency to U.S. dollars
      are reflected in accumulated other comprehensive loss in the consolidated
      balance sheets. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 11pt">Transaction
      gains and losses that arise from foreign exchange rate fluctuations on
      transactions denominated in a currency other than the functional currency,
      except those transactions which operate as a hedge of a foreign currency
      investment position, are included in the statements of operations as incurred.
      </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 11pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-17</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
</div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt" align="center"><strong>LEAR CORPORATION AND
      SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 6.65pt"><strong>(2) Summary of
      Significant Accounting Policies &#8211; (continued)</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>Stock-Based
      Compensation </i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 6.65pt; TEXT-INDENT: 18pt">On
      January&#160;1, 2006, the Company adopted the provisions of SFAS No. 123(R),
&#8220;Share-Based Payment,&#8221; using the modified prospective transition method and
      recognized income of $2.9&#160;million as a cumulative effect of a change in
      accounting principle related to a change in accounting for forfeitures. There
      was no income tax effect resulting from this adoption (Note 9, &#8220;Income Taxes&#8221;).
      SFAS No. 123(R) requires the estimation of expected forfeitures at the grant
      date and the recognition of compensation cost only for those awards expected
      to
      vest. Previously, the Company accounted for forfeitures as they occurred. The
      adoption of SFAS No. 123(R) did not &#160;result in the recognition of
      additional compensation cost related to outstanding unvested awards, as the
      Company recognized compensation cost using the fair value provisions of SFAS
      No.
      123, &#8220;Accounting for Stock-Based Compensation,&#8221; for all employee awards granted
      after January&#160;1, 2003. The pro forma effect on net income (loss) and net
      income (loss) per share, as if the fair value recognition provisions had been
      applied to all outstanding and unvested awards granted prior to January&#160;1,
      2003, is shown below (in millions, except per share data): </div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="335">
            </td>
            <td width="12">
            </td>
            <td width="7">
            </td>
            <td width="47">
            </td>
            <td width="22">
            </td>
            <td width="7">
            </td>
            <td width="32">
            </td>
            <td width="3">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="447">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="5" valign="bottom" width="155" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>For
                the Year Ended
                December&#160;31,</strong></div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="447">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="73">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2005</strong></div>
            </td>
            <td valign="bottom" width="30">&#160;</td>
            <td colspan="2" valign="bottom" width="52" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2004</strong></div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="447">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="63" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="30">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="42">&#160;</td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="447">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Net
                income (loss), as
                reported&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="9">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="63">
              <div style="MARGIN: 0pt" align="right">(1,381.5</div>
            </td>
            <td valign="bottom" width="30">
              <div style="MARGIN: 0pt">)&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="9">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="42">
              <div style="MARGIN: 0pt" align="right">422.2</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="447">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Add:
                Stock-based employee compensation expense included in reported<br>net
                income (loss)</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="63">
              <div style="MARGIN: 0pt" align="right">14.7</div>
            </td>
            <td valign="bottom" width="30">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="42">
              <div style="MARGIN: 0pt" align="right">10.9</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="447">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Deduct:
                Total stock-based employee compensation expense determined under<br>fair
                value based method for all awards</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="63" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(18.1</div>
            </td>
            <td valign="bottom" width="30">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="9" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="42" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(21.6</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: #ccffcc 0.5pt solid;">
              <div style="MARGIN: 0pt" align="center">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="447">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Net
                income (loss), pro forma</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="63" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">(1,384.9</div>
            </td>
            <td valign="bottom" width="30" style="border-bottom: white 3pt double;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="9" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="42" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">411.5</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="447">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Net
                income (loss) per share:</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="63">&#160;</td>
            <td valign="bottom" width="30">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="42">&#160;</td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="447">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Basic
                &#8211; as reported</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="63">
              <div style="MARGIN: 0pt" align="right">(20.57</div>
            </td>
            <td valign="bottom" width="30">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="9">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="42">
              <div style="MARGIN: 0pt" align="right">6.18</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="447">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Basic
                &#8211; pro forma</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="63">
              <div style="MARGIN: 0pt" align="right">(20.62</div>
            </td>
            <td valign="bottom" width="30">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="9">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="42">
              <div style="MARGIN: 0pt" align="right">6.03</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="447">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Diluted
                &#8211; as reported</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="63">
              <div style="MARGIN: 0pt" align="right">(20.57</div>
            </td>
            <td valign="bottom" width="30">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="9">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="42">
              <div style="MARGIN: 0pt" align="right">5.77</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="447">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Diluted
                &#8211; pro forma</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="63">
              <div style="MARGIN: 0pt" align="right">(20.62</div>
            </td>
            <td valign="bottom" width="30">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="9">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="42">
              <div style="MARGIN: 0pt" align="right">5.63</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>

      </table>
    </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">For the
      year ended December&#160;31, 2006, total stock-based employee compensation
      expense was $32.0&#160;million. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt">For further information
      related to the Company&#8217;s stock-based compensation programs, see Note 11,
&#8220;Stock-Based Compensation.&#8221; </div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>Net Income (Loss)
      Per Share </i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 6.65pt; TEXT-INDENT: 18pt">Basic
      net income (loss) per share is computed using the weighted average common shares
      outstanding during the period. Diluted net income (loss) per share includes
      the
      dilutive effect of common stock equivalents using the average share price during
      the period. In addition, when the impact is dilutive, diluted net income per
      share is calculated by increasing net income for the after-tax interest expense
      on convertible debt and by increasing total shares outstanding by the number
      of
      shares that would be issuable upon conversion. Prior to the repurchase of
      substantially all of the Company&#8217;s outstanding zero-coupon convertible notes
      during 2006, there were 4,813,056 shares issuable upon conversion of the
      Company&#8217;s convertible zero-coupon senior notes. Tables summarizing net income
      (loss), for diluted net income (loss) per share (in millions) and shares
      outstanding are shown below: </div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="315">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="29">
            </td>
            <td width="15">
            </td>
            <td width="5">
            </td>
            <td width="33">
            </td>
            <td width="15">
            </td>
            <td width="6">
            </td>
            <td width="28">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="420">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="8" valign="bottom" width="186" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>For
                the Year Ended
                December&#160;31,</strong></div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="420">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="46">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2006</strong></div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td colspan="2" valign="bottom" width="51">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2005</strong></div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td colspan="2" valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2004</strong></div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="420">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="46" style="border-top: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td colspan="2" valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="420">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Net
                income
                (loss)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="39">
              <div style="MARGIN: 0pt" align="right">(707.5</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">(1,381.5</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="38">
              <div style="MARGIN: 0pt" align="right">422.2</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="420">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Add:
                After-tax interest expense on convertible debt</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="39" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="38" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">9.3</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="420">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Net
                income (loss), for diluted net income (loss) per share</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="39" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">(707.5</div>
            </td>
            <td valign="bottom" width="21" style="border-bottom: #ccffcc 3pt double;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="44" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">(1,381.5</div>
            </td>
            <td valign="bottom" width="21" style="border-bottom: #ccffcc 3pt double;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="38" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">431.5</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-18</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
</div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt" align="center"><strong>LEAR CORPORATION AND
      SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 6.65pt"><strong>(2) Summary of
      Significant Accounting Policies &#8211; (continued)</strong></div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="291">
            </td>
            <td width="12">
            </td>
            <td width="46">
            </td>
            <td width="12">
            </td>
            <td width="46">
            </td>
            <td width="12">
            </td>
            <td width="45">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="388">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td colspan="5" valign="bottom" width="218" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>For
                the Year Ended
                December&#160;31,</strong></div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="388">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="61">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2006</strong></div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="61">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2005</strong></div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="61" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2004</strong></div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="388">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="61" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="61" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="61">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="388">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Weighted
                average common shares
                outstanding&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="61">
              <div style="MARGIN: 0pt" align="right">68,607,262</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="61">
              <div style="MARGIN: 0pt" align="right">67,166,668</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt" align="right">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="61">
              <div style="MARGIN: 0pt" align="right">68,278,858</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="388">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Dilutive
                effect of common stock equivalents</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="61">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="61">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="61">
              <div style="MARGIN: 0pt" align="right">1,635,349</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="388">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Shares
                issuable upon conversion of convertible debt</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="61" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="61" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="61" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">4,813,056</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="388">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Diluted
                shares outstanding</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="61" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">68,607,262</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="61" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">67,166,668</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="61" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">74,727,263</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">For
      further information related to the zero-coupon convertible senior notes, see
      Note 8, &#8220;Long-Term Debt.&#8221; </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 6.65pt; TEXT-INDENT: 18pt">The
      shares issuable upon conversion of the Company&#8217;s outstanding zero-coupon
      convertible debt and the effect of common stock equivalents, including options,
      restricted stock units, performance units and stock appreciation rights were
      excluded from the computation of diluted shares outstanding for the years ended
      December&#160;31, 2006 and 2005, as inclusion would have resulted in
      antidilution. A summary of these options and their exercise prices, as well
      as
      these restricted stock units, performance units and stock appreciation rights,
      is shown below: </div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="262">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="60">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="60">
            </td>
            <td width="12">
            </td>
            <td width="37">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="350">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="7" valign="bottom" width="256" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>For
                the Year Ended
                December&#160;31,</strong></div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="350">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="86">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2006</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="86">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2005</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2004</strong></div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="350">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="80" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="80" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="350">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Options</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="80">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="80">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="50">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="350">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Antidilutive
                options&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt" align="center">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="80">
              <div style="MARGIN: 0pt" align="right">2,790,305</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="80">
              <div style="MARGIN: 0pt" align="right">2,983,405</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="350">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Exercise
                prices</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="80">
              <div style="MARGIN: 0pt" align="right">22.12 &#8211; $55.33</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="80">
              <div style="MARGIN: 0pt" align="right">22.12 &#8211; $55.33</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="350">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Restricted
                stock units</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="80">
              <div style="MARGIN: 0pt" align="right">1,964,571</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="80">
              <div style="MARGIN: 0pt" align="right">2,234,122</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="350">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Performance
                units</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="80">
              <div style="MARGIN: 0pt" align="right">169,909</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="80">
              <div style="MARGIN: 0pt" align="right">123,672</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="350">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Stock
                appreciation rights</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="80">
              <div style="MARGIN: 0pt" align="right">1,751,854</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="80">
              <div style="MARGIN: 0pt" align="right">1,215,046</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>Use of Estimates
      </i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      preparation of the consolidated financial statements in conformity with
      accounting principles generally accepted in the United States requires
      management to make estimates and assumptions that affect the reported amounts
      of
      assets and liabilities as of the date of the consolidated financial statements
      and the reported amounts of revenues and expenses during the reporting period.
      During 2006, there were no material changes in the methods or policies used
      to
      establish estimates and assumptions. Generally, matters subject to estimation
      and judgment include amounts related to accounts receivable realization,
      inventory obsolescence, asset impairments, useful lives of intangible and fixed
      assets and unsettled pricing discussions with customers and suppliers (Note
      2,
&#8220;Summary of Significant Accounting Policies&#8221;); restructuring accruals (Note 5,
&#8220;Restructuring&#8221;); deferred tax asset valuation allowances and income taxes (Note
      9, &#8220;Income Taxes&#8221;); pension and other postretirement benefit plan assumptions
      (Note 10, &#8220;Pension and Other Postretirement Benefit Plans&#8221;); accruals related to
      litigation, warranty and environmental remediation costs (Note 12, &#8220;Commitments
      and Contingencies&#8221;); and self-insurance accruals. Actual results may differ from
      estimates provided. </div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>Reclassifications
      </i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Certain
      amounts in prior years&#8217; financial statements have been reclassified to conform
      to the presentation used in the year ended December&#160;31, 2006. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-19</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
</div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt" align="center"><strong>LEAR CORPORATION AND
      SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>(3) Divestiture of
      Interior Business </strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>European Interior
      Business </i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">On
      October&#160;16, 2006, the Company completed the contribution of substantially
      all of its European interior business to International Automotive Components
      Group, LLC (&#8220;IAC Europe&#8221;), the Company&#8217;s joint venture with WL Ross &amp; Co.
      LLC (&#8220;WL Ross&#8221;) and Franklin Mutual Advisers, LLC (&#8220;Franklin&#8221;), in exchange for
      a one-third equity interest. In connection with the transaction, the Company
      entered into various ancillary agreements providing the Company with customary
      minority shareholder rights and registration rights with respect to its equity
      interest in IAC Europe. The Company&#8217;s European interior business included
      substantially all of its interior components business in Europe (other than
      Italy and one facility in France), consisting of nine manufacturing facilities
      in five countries supplying door panels, overhead systems, instrument panels,
      cockpits and interior trim to various original equipment manufacturers. IAC
      Europe also owns the European interior business formerly held by Collins &amp;
Aikman Corporation. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">In
      connection with this transaction, the Company recorded the fair market value
      of
      its initial investment in IAC Europe at $105.6&#160;million and recognized a
      pretax loss of approximately $29.1&#160;million. This loss is recorded as part
      of the Company&#8217;s loss on divestiture of interior business in the statement of
      operations for the year ended December&#160;31, 2006. The Company did not
      account for the divestiture of its European interior business as a discontinued
      operation due to its continuing involvement with IAC Europe. The Company&#8217;s
      investment in IAC Europe is accounted for under the equity method of accounting
      (Note 6, &#8220;Investments in Affiliates and Other Related Party Transactions&#8221;).
</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>North American
      Interior Business </i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">On
      November&#160;30, 2006, the Company entered into an Asset Purchase Agreement
      with International Automotive Components Group North America, Inc. and
      International Automotive Components Group North America, LLC (together, &#8220;IAC
      North America&#8221;), WL Ross and Franklin, under which the Company agreed to
      transfer substantially all of the assets of the Company&#8217;s North American
      interior business, as well as interests in two China joint ventures and
      $25&#160;million of cash, to IAC North America. Under the terms of the
      agreement, the Company will receive a 25% equity interest in IAC North America
      and warrants to purchase an additional 7% equity interest. In addition, under
      the terms of the agreement, the Company will be obligated to fund up to an
      additional $40&#160;million to the IAC North America joint venture, in the event
      that the joint venture does not meet certain financial targets in 2007. The
      Asset Purchase Agreement also contains a closing date net working capital
      adjustment provision and requires the Company to have a minimum level of
      recoverable customer engineering and tooling as of the closing date. The closing
      of the transaction contemplated by the agreement is subject to various
      conditions, including the receipt of required third-party consents, as well
      as
      other closing conditions customary for transactions of this type. The
      transaction is expected to close in the first quarter of 2007. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-20</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
</div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt" align="center"><strong>LEAR CORPORATION AND
      SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>(3) Divestiture of
      Interior Business &#8211; (continued)</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 6.65pt; TEXT-INDENT: 18pt">The
      Company accounted for the North American interior business as held for sale
      as
      of December&#160;31, 2006, in accordance with SFAS No. 144, &#8220;Accounting for the
      Impairment or Disposal of Long-Lived Assets.&#8221; Accordingly, the Company recorded
      an estimated pretax loss of $606.9&#160;million to adjust the net carrying value
      of the assets and liabilities of the North American interior business to their
      recovery value under the terms of the agreement. The Company expects to incur
      additional losses on the divestiture through the transaction closure date.
      The
      total pretax loss is expected to be in the range of $650&#160;million to
      $675&#160;million. The Company will not account for the divestiture as a
      discontinued operation due to its continuing involvement with IAC North America.
      The Company will account for its investment in IAC North America under the
      equity method of accounting effective upon the closing of the transaction.
      The
      major classes of the assets and liabilities of the Company&#8217;s North American
      interior business that are classified as held for sale in the Company&#8217;s
      consolidated balance sheets are shown below (in millions):</div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="373">
            </td>
            <td width="13">
            </td>
            <td width="5">
            </td>
            <td width="24">
            </td>
            <td width="13">
            </td>
            <td width="5">
            </td>
            <td width="32">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="498">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td colspan="5" valign="bottom" width="107" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>December&#160;31,</strong></div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="498">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td colspan="2" valign="bottom" width="39">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2006</strong></div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td colspan="2" valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2005</strong></div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="498">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="32" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="43">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="498">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Cash
                and cash
                equivalents&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="32">
              <div style="MARGIN: 0pt" align="right">19.2</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="43">
              <div style="MARGIN: 0pt" align="right">10.3</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="498">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Accounts
                receivable</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="32">
              <div style="MARGIN: 0pt" align="right">284.5</div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="43">
              <div style="MARGIN: 0pt" align="right">337.5</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="498">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Inventories</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="32">
              <div style="MARGIN: 0pt" align="right">69.2</div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="43">
              <div style="MARGIN: 0pt" align="right">92.7</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="498">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Recoverable
                customer engineering and tooling</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="32">
              <div style="MARGIN: 0pt" align="right">52.7</div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="43">
              <div style="MARGIN: 0pt" align="right">157.2</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="498">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Other
                current assets</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="32" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">2.2</div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="43" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">10.0</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="498">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Current
                assets of business held for sale</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="32" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">427.8</div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="43" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">607.7</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="498">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Property,
                plant and equipment, net</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="32">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="43">
              <div style="MARGIN: 0pt" align="right">404.5</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="498">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Other
                long-term assets</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="32" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="43" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">80.7</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="498">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Long-term
                assets of business held for sale</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="32" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="43" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">485.2</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="498">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 30pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Total
                assets of business held for sale</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="32" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">427.8</div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="43" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">1,092.9</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="MARGIN: 0pt"><br></div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="374">
            </td>
            <td width="13">
            </td>
            <td width="5">
            </td>
            <td width="24">
            </td>
            <td width="13">
            </td>
            <td width="5">
            </td>
            <td width="32">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="498">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td colspan="5" valign="bottom" width="107" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>December&#160;31,</strong></div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="498">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td colspan="2" valign="bottom" width="39">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2006</strong></div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td colspan="2" valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2005</strong></div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="498">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="32" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="43">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="498">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Accounts
                payable and
                drafts&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt" align="justify">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="32">
              <div style="MARGIN: 0pt" align="right">323.7</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="43">
              <div style="MARGIN: 0pt" align="right">477.6</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="498">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Accrued
                liabilities</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="32">
              <div style="MARGIN: 0pt" align="right">79.8</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="43">
              <div style="MARGIN: 0pt" align="right">71.7</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="498">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Current
                portion of long-term debt</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="32" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">2.2</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="43" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="498">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Current
                liabilities of business held for sale</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="32" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">405.7</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="43" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">549.3</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="498">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Long-term
                debt</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="32">
              <div style="MARGIN: 0pt" align="right">19.6</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="43">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="498">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Other
                long-term liabilities</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="32" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">28.9</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="43" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">27.6</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="498">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Long-term
                liabilities of business held for sale</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="32" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">48.5</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="43" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">27.6</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="498">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 30pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Total
                liabilities of business held for sale</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="justify">$</div>
            </td>
            <td valign="bottom" width="32" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">454.2</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="43" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">576.9</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The total
      assets of business held for sale include recoverable customer engineering and
      tooling contracts and other monetary assets amounting to $92.9&#160;million for
      which valuation allowances have been recorded in consolidation in order to
      determine the loss on the transaction. The fair value of these monetary assets
      approximates the carrying value indicated above before any valuation allowances.
      </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">For
      further information on the operating results of the Company&#8217;s interior business,
      see Note 13, &#8220;Segment Reporting.&#8221; </div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>(4) Sale of Common
      Stock</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">On
      November&#160;8, 2006, the Company completed the sale of 8,695,653 shares of
      common stock for an aggregate purchase price of $23 per share to affiliates
      of
      and funds managed by Carl C. Icahn. The net proceeds from the sale of
      $199.2&#160;million will be used for general corporate purposes, including
      strategic investments in the Company&#8217;s core businesses. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-21</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
</div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt" align="center"><strong>LEAR CORPORATION AND
      SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>(5)
      Restructuring</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>2006 and
      2005</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">In order
      to address unfavorable industry conditions, the Company began to implement
      consolidation and census actions in the second quarter of 2005. These actions
      are part of a comprehensive restructuring strategy intended to (i) better align
      the Company&#8217;s manufacturing capacity with the changing needs of its customers,
      (ii) eliminate excess capacity and lower the operating costs of the Company
      and
      (iii) streamline the Company&#8217;s organizational structure and reposition its
      business for improved long-term profitability. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">In
      connection with the restructuring actions, the Company currently expects to
      incur pre-tax costs of approximately $300&#160;million, although all aspects of
      the restructuring actions have not been finalized. Such costs will include
      employee termination benefits, asset impairment charges and contract termination
      costs, as well as other incremental costs resulting from the restructuring
      actions. These incremental costs will principally include equipment and
      personnel relocation costs. The Company also expects to incur incremental
      manufacturing inefficiency costs at the operating locations impacted by the
      restructuring actions during the related restructuring implementation period.
      Restructuring costs will be recognized in the Company&#8217;s consolidated financial
      statements in accordance with accounting principles generally accepted in the
      United States. Generally, charges will be recorded as elements of the
      restructuring strategy are finalized. Actual costs recorded in the Company&#8217;s
      consolidated financial statements may vary from current estimates. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">In
      connection with the Company&#8217;s restructuring actions, the Company recorded
      charges of $93.2&#160;million in 2006. This consists of $81.9&#160;million
      recorded as cost of sales and $17.2&#160;million recorded as selling, general
      and administrative expenses, offset by net gains on the sales of two facilities
      and machinery and equipment, which are recorded as other expense, net. The
      2006
      charges consist of employee termination benefits of $79.3&#160;million, asset
      impairment charges of $5.8&#160;million and contract termination costs of
      $6.5&#160;million, as well as other net costs of $1.6&#160;million. Employee
      termination benefits were recorded based on existing union and employee
      contracts, statutory requirements and completed negotiations. Asset impairment
      charges relate to the disposal of buildings, leasehold improvements and
      machinery and equipment with carrying values of $5.8&#160;million in excess of
      related estimated fair values. Contract termination costs include lease
      cancellation costs of $0.8&#160;million, which was paid in 2006, the repayment
      of various government-sponsored grants of $0.7&#160;million, costs associated
      with the termination of subcontractor and other relationships of
      $4.1&#160;million and pension benefit curtailment charges of $0.9&#160;million.
</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 6.65pt; TEXT-INDENT: 18pt">A
      summary of the 2006 restructuring charges, excluding the $0.9&#160;million
      pension and other postretirement benefit plan curtailments, is shown below
      (in
      millions): </div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="206">
            </td>
            <td width="13">
            </td>
            <td width="10">
            </td>
            <td width="38">
            </td>
            <td width="13">
            </td>
            <td width="6">
            </td>
            <td width="23">
            </td>
            <td width="13">
            </td>
            <td width="5">
            </td>
            <td width="22">
            </td>
            <td width="19">
            </td>
            <td width="8">
            </td>
            <td width="25">
            </td>
            <td width="13">
            </td>
            <td width="10">
            </td>
            <td width="38">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="275">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td colspan="2" rowspan="2" valign="bottom" width="65" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Accrual
                as
                of<br>December&#160;31,<br>2005</strong></div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td colspan="2" rowspan="2" valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Charges</strong></div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td colspan="5" valign="bottom" width="107" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><br><strong>Utilization</strong></div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td colspan="2" rowspan="2" valign="bottom" width="65" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Accrual
                as
                of<br>December&#160;31,<br>2006</strong></div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="275">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td colspan="2" valign="bottom" width="36" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Cash</strong></div>
            </td>
            <td valign="bottom" width="25">&#160;</td>
            <td colspan="2" valign="bottom" width="45" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Non-cash</strong></div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="275">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="14">&#160;</td>
            <td valign="bottom" width="51">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="31">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="29">&#160;</td>
            <td valign="bottom" width="25">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="34">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="14">&#160;</td>
            <td valign="bottom" width="50">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="275">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Employee
                termination
                benefits&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="14">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">15.1</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="31">
              <div style="MARGIN: 0pt" align="right">79.3</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="29">
              <div style="MARGIN: 0pt" align="right">(58.0</div>
            </td>
            <td valign="bottom" width="25">
              <div style="MARGIN: 0pt">) &#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="10">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="14">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">36.4</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="275">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Asset
                impairments</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="14">&#160;</td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="31">
              <div style="MARGIN: 0pt" align="right">5.8</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="29">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="25">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">(5.8</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="14">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="275">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Contract
                termination costs</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="14">&#160;</td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">5.0</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="31">
              <div style="MARGIN: 0pt" align="right">5.6</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="29">
              <div style="MARGIN: 0pt" align="right">(7.2</div>
            </td>
            <td valign="bottom" width="25">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="14">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">3.4</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="275">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Other
                related costs</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="14" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="51" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="31" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">1.6</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="29" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(1.6</div>
            </td>
            <td valign="bottom" width="25">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="10" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="34" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="14" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="275">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Total</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="14" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="51" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">20.1</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="31" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">92.3</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="29" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">(66.8</div>
            </td>
            <td valign="bottom" width="25" style="border-bottom: #ccffcc 3pt double;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="10" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="34" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">(5.8</div>
            </td>
            <td valign="bottom" width="17" style="border-bottom: #ccffcc 3pt double;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="14" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="50" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">39.8</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">In
      connection with the Company&#8217;s restructuring actions, the Company recorded
      charges of $88.9&#160;million in 2005, including $84.6&#160;million recorded as
      cost of sales and $6.2&#160;million recorded as selling, general and
      administrative expenses. The remaining amounts include a gain on the sale of
      a
      facility, which is recorded as other expense, net. The 2005 charges consist
      of
      employee termination benefits of $56.5&#160;million, asset impairment charges of
      $15.1&#160;million and contract termination costs of $13.5&#160;million, as well
      as other net costs of $3.8&#160;million. Employee termination benefits were
      recorded based on existing union and employee contracts, statutory requirements
      and completed negotiations. Asset impairment charges relate to the disposal
      of
      buildings, leasehold improvements and machinery and equipment with carrying
      values of $15.1&#160;million in excess of related estimated fair values.
      Contract </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-22</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
</div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt" align="center"><strong>LEAR CORPORATION AND
      SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>(5) Restructuring
&#8211;
(continued)</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt">termination costs include
      lease cancellation costs of $3.4&#160;million, which are expected to be paid
      through 2006, the repayment of various government-sponsored grants of
      $4.8&#160;million, the termination of joint venture, subcontractor and other
      relationships of $3.2&#160;million and pension and other postretirement benefit
      plan curtailments of $2.1&#160;million. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 6.65pt; TEXT-INDENT: 18pt">A
      summary of the 2005 restructuring charges, excluding the $2.1&#160;million
      pension and other postretirement benefit plan curtailments, is shown below
      (in
      millions): </div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="271">
            </td>
            <td width="13">
            </td>
            <td width="6">
            </td>
            <td width="23">
            </td>
            <td width="13">
            </td>
            <td width="5">
            </td>
            <td width="22">
            </td>
            <td width="16">
            </td>
            <td width="6">
            </td>
            <td width="27">
            </td>
            <td width="13">
            </td>
            <td width="10">
            </td>
            <td width="38">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="362">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td colspan="2" valign="bottom" width="39">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td colspan="5" valign="bottom" width="103" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><br><strong>Utilization</strong></div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td colspan="2" rowspan="2" valign="bottom" width="65" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Accrual
                as
                of<br>December&#160;31,<br>2005</strong></div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="362">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td colspan="2" valign="bottom" width="39">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Charges</strong></div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td colspan="2" valign="bottom" width="36">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Cash</strong></div>
            </td>
            <td valign="bottom" width="22">&#160;</td>
            <td colspan="2" valign="bottom" width="45" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Non-cash</strong></div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="362">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="8" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="31" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="29" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="22">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="36">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="14">&#160;</td>
            <td valign="bottom" width="50">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="362">
              <div style="MARGIN-TOP: 2pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Employee
                termination
                benefits&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="31">
              <div style="MARGIN: 0pt" align="right">56.5</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="29">
              <div style="MARGIN: 0pt" align="right">(41.4</div>
            </td>
            <td valign="bottom" width="22">
              <div style="MARGIN: 0pt">)&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="36">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="14">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">15.1</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="362">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Asset
                impairments</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="31">
              <div style="MARGIN: 0pt" align="right">15.1</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="29">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="22">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="36">
              <div style="MARGIN: 0pt" align="right">(15.1</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="14">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="362">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Contract
                termination costs</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="31">
              <div style="MARGIN: 0pt" align="right">11.4</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="29">
              <div style="MARGIN: 0pt" align="right">(6.4</div>
            </td>
            <td valign="bottom" width="22">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="36">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="14">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">5.0</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="362">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Other
                related costs</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="31" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">3.8</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="29" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(3.8</div>
            </td>
            <td valign="bottom" width="22">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="36" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="14" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="362">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Total</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="31" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">86.8</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="29" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">(51.6</div>
            </td>
            <td valign="bottom" width="22" style="border-bottom: #ccffcc 3pt double;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="36" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">(15.1</div>
            </td>
            <td valign="bottom" width="17" style="border-bottom: #ccffcc 3pt double;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="14" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="50" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">20.1</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>2004</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">In 2004,
      the Company recorded $7.8&#160;million for employee termination benefits and
      asset impairments at two U.S. seating facilities. In addition, the Company
      also
      incurred $39.9&#160;million in estimated costs related to additional facility
      consolidations and closures and census reductions. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-23</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
</div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt" align="center"><strong>LEAR CORPORATION AND
      SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>(6) Investments in
      Affiliates and Other Related Party Transactions</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 6.65pt; TEXT-INDENT: 18pt">The
      Company&#8217;s beneficial ownership in affiliates accounted for under the equity
      method is shown below: </div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="327">
            </td>
            <td width="12">
            </td>
            <td width="25">
            </td>
            <td width="20">
            </td>
            <td width="27">
            </td>
            <td width="20">
            </td>
            <td width="25">
            </td>
            <td width="8">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="436">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="5" valign="bottom" width="160" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>December&#160;31,</strong></div>
            </td>
            <td valign="bottom" width="11">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="436">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="34">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2006</strong></div>
            </td>
            <td valign="bottom" width="27">&#160;</td>
            <td valign="bottom" width="37">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2005</strong></div>
            </td>
            <td valign="bottom" width="27">&#160;</td>
            <td valign="bottom" width="33" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2004</strong></div>
            </td>
            <td valign="bottom" width="11">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="436">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="34" style="border-top: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="27">&#160;</td>
            <td valign="bottom" width="37" style="border-top: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="27">&#160;</td>
            <td valign="bottom" width="33">
              <div style="MARGIN: 0pt" align="right">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="11">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="436">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Honduras
                Electrical Distribution Systems S. de R.L. de C.V. (Honduras)</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">60</div>
            </td>
            <td valign="bottom" width="27">
              <div style="MARGIN: 0pt">%&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="37">
              <div style="MARGIN: 0pt" align="right">60</div>
            </td>
            <td valign="bottom" width="27">
              <div style="MARGIN: 0pt">%&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="33">
              <div style="MARGIN: 0pt" align="right">60</div>
            </td>
            <td valign="bottom" width="11">
              <div style="MARGIN: 0pt" align="right">%</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="436">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Lear-Kyungshin
                Sales and Engineering LLC</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">60</div>
            </td>
            <td valign="bottom" width="27">&#160;</td>
            <td valign="bottom" width="37">
              <div style="MARGIN: 0pt" align="right">60</div>
            </td>
            <td valign="bottom" width="27">&#160;</td>
            <td valign="bottom" width="33">
              <div style="MARGIN: 0pt" align="right">60</div>
            </td>
            <td valign="bottom" width="11">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="436">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Shanghai
                Lear STEC Automotive Parts Co., Ltd. (China)</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">55</div>
            </td>
            <td valign="bottom" width="27">&#160;</td>
            <td valign="bottom" width="37">
              <div style="MARGIN: 0pt" align="right">55</div>
            </td>
            <td valign="bottom" width="27">&#160;</td>
            <td valign="bottom" width="33">
              <div style="MARGIN: 0pt" align="right">55</div>
            </td>
            <td valign="bottom" width="11">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="436">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Lear
                Shurlok Electronics (Proprietary) Limited (South Africa)</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">51</div>
            </td>
            <td valign="bottom" width="27">&#160;</td>
            <td valign="bottom" width="37">
              <div style="MARGIN: 0pt" align="right">51</div>
            </td>
            <td valign="bottom" width="27">&#160;</td>
            <td valign="bottom" width="33">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="11">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="436">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Industrias
                Cousin Freres, S.L. (Spain)</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">50</div>
            </td>
            <td valign="bottom" width="27">&#160;</td>
            <td valign="bottom" width="37">
              <div style="MARGIN: 0pt" align="right">50</div>
            </td>
            <td valign="bottom" width="27">&#160;</td>
            <td valign="bottom" width="33">
              <div style="MARGIN: 0pt" align="right">50</div>
            </td>
            <td valign="bottom" width="11">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="436">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Hanil
                Lear India Private Limited (India)</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">50</div>
            </td>
            <td valign="bottom" width="27">&#160;</td>
            <td valign="bottom" width="37">
              <div style="MARGIN: 0pt" align="right">50</div>
            </td>
            <td valign="bottom" width="27">&#160;</td>
            <td valign="bottom" width="33">
              <div style="MARGIN: 0pt" align="right">50</div>
            </td>
            <td valign="bottom" width="11">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="436">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Nanjing
                Lear Xindi Automotive Interiors Systems Co., Ltd. (China)</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">50</div>
            </td>
            <td valign="bottom" width="27">&#160;</td>
            <td valign="bottom" width="37">
              <div style="MARGIN: 0pt" align="right">50</div>
            </td>
            <td valign="bottom" width="27">&#160;</td>
            <td valign="bottom" width="33">
              <div style="MARGIN: 0pt" align="right">50</div>
            </td>
            <td valign="bottom" width="11">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="436">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Lear
                Dongfeng Automotive Seating Co., Ltd. (China)</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">50</div>
            </td>
            <td valign="bottom" width="27">&#160;</td>
            <td valign="bottom" width="37">
              <div style="MARGIN: 0pt" align="right">50</div>
            </td>
            <td valign="bottom" width="27">&#160;</td>
            <td valign="bottom" width="33">
              <div style="MARGIN: 0pt" align="right">50</div>
            </td>
            <td valign="bottom" width="11">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="436">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Dong
                Kwang Lear Yuhan Hoesa (Korea)</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">50</div>
            </td>
            <td valign="bottom" width="27">&#160;</td>
            <td valign="bottom" width="37">
              <div style="MARGIN: 0pt" align="right">50</div>
            </td>
            <td valign="bottom" width="27">&#160;</td>
            <td valign="bottom" width="33">
              <div style="MARGIN: 0pt" align="right">50</div>
            </td>
            <td valign="bottom" width="11">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="436">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Tacle
                Seating USA, LLC</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">49</div>
            </td>
            <td valign="bottom" width="27">&#160;</td>
            <td valign="bottom" width="37">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="27">&#160;</td>
            <td valign="bottom" width="33">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="11">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="436">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Jiangxi
                Jiangling Lear Interior Systems Co. Ltd. (China)</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">41</div>
            </td>
            <td valign="bottom" width="27">&#160;</td>
            <td valign="bottom" width="37">
              <div style="MARGIN: 0pt" align="right">41</div>
            </td>
            <td valign="bottom" width="27">&#160;</td>
            <td valign="bottom" width="33">
              <div style="MARGIN: 0pt" align="right">41</div>
            </td>
            <td valign="bottom" width="11">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="436">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Beijing
                Lear Dymos Automotive Seating and Interior Co., Ltd. (China)</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">40</div>
            </td>
            <td valign="bottom" width="27">&#160;</td>
            <td valign="bottom" width="37">
              <div style="MARGIN: 0pt" align="right">40</div>
            </td>
            <td valign="bottom" width="27">&#160;</td>
            <td valign="bottom" width="33">
              <div style="MARGIN: 0pt" align="right">50</div>
            </td>
            <td valign="bottom" width="11">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="436">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Total
                Interior Systems &#8212; America, LLC</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">39</div>
            </td>
            <td valign="bottom" width="27">&#160;</td>
            <td valign="bottom" width="37">
              <div style="MARGIN: 0pt" align="right">39</div>
            </td>
            <td valign="bottom" width="27">&#160;</td>
            <td valign="bottom" width="33">
              <div style="MARGIN: 0pt" align="right">39</div>
            </td>
            <td valign="bottom" width="11">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="436">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">UPM
                S.r.L. (Italy)</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">39</div>
            </td>
            <td valign="bottom" width="27">&#160;</td>
            <td valign="bottom" width="37">
              <div style="MARGIN: 0pt" align="right">39</div>
            </td>
            <td valign="bottom" width="27">&#160;</td>
            <td valign="bottom" width="33">
              <div style="MARGIN: 0pt" align="right">39</div>
            </td>
            <td valign="bottom" width="11">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="436">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Markol
                Otomotiv Yan Sanayi VE Ticaret A.S. (Turkey)</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">35</div>
            </td>
            <td valign="bottom" width="27">&#160;</td>
            <td valign="bottom" width="37">
              <div style="MARGIN: 0pt" align="right">35</div>
            </td>
            <td valign="bottom" width="27">&#160;</td>
            <td valign="bottom" width="33">
              <div style="MARGIN: 0pt" align="right">35</div>
            </td>
            <td valign="bottom" width="11">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="436">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">International
                Automotive Components Group, LLC</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">33</div>
            </td>
            <td valign="bottom" width="27">&#160;</td>
            <td valign="bottom" width="37">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="27">&#160;</td>
            <td valign="bottom" width="33">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="11">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="436">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Lear
                Diamond Electro-Circuit Systems Co., Ltd. (Japan)</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="27">&#160;</td>
            <td valign="bottom" width="37">
              <div style="MARGIN: 0pt" align="right">50</div>
            </td>
            <td valign="bottom" width="27">&#160;</td>
            <td valign="bottom" width="33">
              <div style="MARGIN: 0pt" align="right">50</div>
            </td>
            <td valign="bottom" width="11">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="436">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">RecepTec
                Holdings, L.L.C.</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="27">&#160;</td>
            <td valign="bottom" width="37">
              <div style="MARGIN: 0pt" align="right">21</div>
            </td>
            <td valign="bottom" width="27">&#160;</td>
            <td valign="bottom" width="33">
              <div style="MARGIN: 0pt" align="right">21</div>
            </td>
            <td valign="bottom" width="11">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="436">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Shenyang
                Lear Automotive Seating and Interior Systems Co., Ltd. (China)</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="27">&#160;</td>
            <td valign="bottom" width="37">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="27">&#160;</td>
            <td valign="bottom" width="33">
              <div style="MARGIN: 0pt" align="right">60</div>
            </td>
            <td valign="bottom" width="11">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="436">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Lear
                Furukawa Corporation</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="27">&#160;</td>
            <td valign="bottom" width="37">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="27">&#160;</td>
            <td valign="bottom" width="33">
              <div style="MARGIN: 0pt" align="right">51</div>
            </td>
            <td valign="bottom" width="11">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="436">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Lear-NHK
                Seating and Interior Co., Ltd. (Japan)</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="27">&#160;</td>
            <td valign="bottom" width="37">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="27">&#160;</td>
            <td valign="bottom" width="33">
              <div style="MARGIN: 0pt" align="right">50</div>
            </td>
            <td valign="bottom" width="11">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="436">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Bing
                Assembly Systems, L.L.C.</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="27">&#160;</td>
            <td valign="bottom" width="37">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="27">&#160;</td>
            <td valign="bottom" width="33">
              <div style="MARGIN: 0pt" align="right">49</div>
            </td>
            <td valign="bottom" width="11">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="436">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">JL
                Automotive, LLC</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="27">&#160;</td>
            <td valign="bottom" width="37">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="27">&#160;</td>
            <td valign="bottom" width="33">
              <div style="MARGIN: 0pt" align="right">49</div>
            </td>
            <td valign="bottom" width="11">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="436">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Precision
                Fabrics Group, Inc.</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="27">&#160;</td>
            <td valign="bottom" width="37">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="27">&#160;</td>
            <td valign="bottom" width="33">
              <div style="MARGIN: 0pt" align="right">43</div>
            </td>
            <td valign="bottom" width="11">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="436">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Klingel
                Italiana S.R.L. (Italy)</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="27">&#160;</td>
            <td valign="bottom" width="37">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="27">&#160;</td>
            <td valign="bottom" width="33">
              <div style="MARGIN: 0pt" align="right">40</div>
            </td>
            <td valign="bottom" width="11">&#160;</td>
          </tr>

      </table>
    </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 6.65pt; TEXT-INDENT: 18pt">Summarized
      group financial information for affiliates accounted for under the equity method
      as of December&#160;31, 2006 and 2005, and for the years ended December&#160;31,
      2006, 2005 and 2004, is shown below (unaudited; in millions): </div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="385">
            </td>
            <td width="13">
            </td>
            <td width="5">
            </td>
            <td width="23">
            </td>
            <td width="13">
            </td>
            <td width="5">
            </td>
            <td width="23">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="513">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td colspan="5" valign="bottom" width="93" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>December&#160;31,</strong></div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="513">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td colspan="2" valign="bottom" width="38">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2006</strong></div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td colspan="2" valign="bottom" width="37" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2005</strong></div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="513">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="31" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="31">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="513">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Balance
                sheet data:</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="31">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="31">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="513">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Current
                assets&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="31">
              <div style="MARGIN: 0pt" align="right">580.1</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="31">
              <div style="MARGIN: 0pt" align="right">183.8</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="513">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Non-current
                assets</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="31">
              <div style="MARGIN: 0pt" align="right">317.2</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="31">
              <div style="MARGIN: 0pt" align="right">64.5</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="513">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Current
                liabilities</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="31">
              <div style="MARGIN: 0pt" align="right">610.0</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="31">
              <div style="MARGIN: 0pt" align="right">186.0</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="513">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Non-current
                liabilities</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="31">
              <div style="MARGIN: 0pt" align="right">12.9</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="31">
              <div style="MARGIN: 0pt" align="right">16.5</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="MARGIN: 0pt"><br></div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="325">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="23">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="32">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="32">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="434">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="8" valign="bottom" width="172" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>For
                the Year Ended
                December&#160;31,</strong></div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="434">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="37">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2006</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="50">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2005</strong></div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td colspan="2" valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2004</strong></div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="434">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="31" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="43" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="43">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="434">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Income
                statement data:</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="31">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="43">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="43">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="434">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Net
                sales&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="31">
              <div style="MARGIN: 0pt" align="right">956.8</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="43">
              <div style="MARGIN: 0pt" align="right">1,248.4</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="43">
              <div style="MARGIN: 0pt" align="right">1,127.1</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="434">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Gross
                profit</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="31">
              <div style="MARGIN: 0pt" align="right">50.7</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="43">
              <div style="MARGIN: 0pt" align="right">56.1</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="43">
              <div style="MARGIN: 0pt" align="right">87.7</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="434">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Income
                before provision for income taxes</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="31">
              <div style="MARGIN: 0pt" align="right">16.3</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="43">
              <div style="MARGIN: 0pt" align="right">0.9</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="43">
              <div style="MARGIN: 0pt" align="right">16.0</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="434">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Net
                income (loss)</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="31">
              <div style="MARGIN: 0pt" align="right">11.5</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="43">
              <div style="MARGIN: 0pt" align="right">(4.2</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="43">
              <div style="MARGIN: 0pt" align="right">11.3</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="MARGIN: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-24</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
</div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt"><br><br><br></div>
    <div>&#160;</div>
    <div style="MARGIN: 0pt" align="center"><strong>LEAR CORPORATION AND
      SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>(6) Investments in
      Affiliates and Other Related Party Transactions &#8211; (continued)</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">As of
      December&#160;31, 2006 and 2005, the Company&#8217;s aggregate investment in
      affiliates was $141.3&#160;million and $28.5&#160;million, respectively. In
      addition, the Company had notes and advances due from affiliates of
      $12.8&#160;million and $2.8&#160;million as of December&#160;31, 2006 and 2005,
      respectively. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 6.65pt; TEXT-INDENT: 18pt">A
      summary of transactions with affiliates and other related parties is shown
      below
      (in millions): </div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="338">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="19">
            </td>
            <td width="14">
            </td>
            <td width="5">
            </td>
            <td width="25">
            </td>
            <td width="14">
            </td>
            <td width="5">
            </td>
            <td width="25">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="451">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="8" valign="bottom" width="155" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>For
                the Year Ended
                December&#160;31,</strong></div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="451">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="34">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2006</strong></div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td colspan="2" valign="bottom" width="41">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2005</strong></div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td colspan="2" valign="bottom" width="41" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2004</strong></div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="451">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="26" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="7" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="34" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="34">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="451">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Sales
                to
                affiliates&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt" align="justify">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="26">
              <div style="MARGIN: 0pt" align="right">35.8</div>
            </td>
            <td valign="bottom" width="19">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">$ </div>
            </td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">144.9</div>
            </td>
            <td valign="bottom" width="19">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">140.3</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="451">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Purchases
                from affiliates</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="26">
              <div style="MARGIN: 0pt" align="right">51.1</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">&#160;&#160;</div>
            </td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">224.9</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">120.9</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="451">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Purchases
                from other related parties(1)</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="26">
              <div style="MARGIN: 0pt" align="right">12.5</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">&#160;&#160;</div>
            </td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">13.6</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">12.5</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="451">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Management
                and other fees for services provided to affiliates</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="26">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">&#160;&#160;</div>
            </td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">0.6</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">3.3</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="451">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Dividends
                received from affiliates</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="26">
              <div style="MARGIN: 0pt" align="right">1.6</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">&#160;&#160;</div>
            </td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">5.3</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">3.2</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="FONT-SIZE: 11pt; MARGIN: 0pt; LINE-HEIGHT: 13pt">&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;</div>
    <div style="MARGIN-TOP: 0pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: -12pt; TEXT-INDENT: -18pt">(1)
      </div>
    <div style="MARGIN-TOP: 0pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 2.5pt">Includes
      $4.0&#160;million, $4.3&#160;million and $3.5&#160;million in 2006, 2005 and
      2004, respectively, paid to CB Richard Ellis (formerly Trammell Crow Company
      in
      2005 and 2004) for real estate brokerage, as well as property and project
      management services; includes $6.6&#160;million, $7.0&#160;million and
      $7.3&#160;million in 2006, 2005 and 2004, respectively, paid to Analysts
      International, Sequoia Services Group for the purchase of computer equipment
      and
      for computer-related services; includes $0.5&#160;million, $0.4&#160;million and
      $0.4&#160;million in 2006, 2005 and 2004, respectively, paid to Elite Support
      Management Group, L.L.C. for the provision of information technology temporary
      support personnel; includes $1.4&#160;million, $1.9&#160;million and
      $1.3&#160;million in 2006, 2005 and 2004, respectively, paid to Creative Seating
      Innovations, Inc. for prototype tooling and parts; and includes
      $0.7&#160;million and $2.4&#160;million in 2006 and 2005, respectively, paid to
      the Materials Group for plastic resins. Each entity employed a relative of
      the
      Company&#8217;s Chairman and Chief Executive Officer in 2006. In addition, Elite
      Support Management and Creative Seating Innovations were each partially owned
      by
      relatives of the Company&#8217;s Chairman and Chief Executive Officer in 2006. As a
      result, such entities may be deemed to be related parties. These purchases
      were
      made in the ordinary course of the Company&#8217;s business and in accordance with the
      Company&#8217;s normal procedures for engaging service providers or normal sourcing
      procedures for suppliers, as applicable. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      Company&#8217;s investments in Honduras Electrical Distribution Systems S. de R.L. de
      C.V., Lear-Kyungshin Sales and Engineering LLC and Shanghai Lear STEC Automotive
      Parts Co., Ltd. are accounted for under the equity method as the result of
      certain approval rights granted to the minority shareholder. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      Company guarantees 60% of certain of the debt of Honduras Electrical
      Distribution Systems S. de R.L. de C.V., 40% of certain of the debt of Beijing
      Lear Dymos Automotive Seating and Interior Co., Ltd. and 39% of certain of
      the
      debt of Total Interior Systems &#8212; America, LLC. As of December&#160;31, 2006, the
      amount of debt guaranteed by the Company was $17.9&#160;million. </div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>2006</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">In
      October&#160;2006, the Company completed the contribution of substantially all
      of its European interior business to International Automotive Components Group,
      LLC, a joint venture the Company formed with WL Ross and Franklin (Note 3,
      &#8220;Divestiture of Interior Business&#8221;). In February&#160;2006, the Company formed
      Tacle Seating USA, LLC, a joint venture with Tachi-S Engineering U.S.A., Inc.,
      to manufacture and supply seat systems. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Also
      in
      2006, the Company divested its ownership interest in RecepTec Holdings, L.L.C,
      recognizing a gain of $13.4&#160;million, which is reflected in equity in net
      (income) loss in affiliates in the consolidated statement of operations for
      the
      year ended December&#160;31, 2006. In addition, the Company and its joint
      venture partner dissolved Lear Diamond Electro-Circuit Systems Co., Ltd. </div>
    <div style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt">&#160;</div>
    <div style="MARGIN: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-25</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
</div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt" align="center"><strong>LEAR CORPORATION AND
      SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>(6) Investments in
      Affiliates and Other Related Party Transactions &#8211; (continued)</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>2005</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">In
      December&#160;2005, the Company engaged in the restructuring of two of its
      previously unconsolidated affiliates, Bing Assembly Systems, L.L.C. (&#8220;BAS&#8221;) and
      JL Automotive, LLC (&#8220;JLA&#8221;), which involved capital restructurings, changes in
      the investors and amendments to the related operating agreements. Each venture
      assembles, sequences and manufactures automotive interior components. These
      restructurings resulted in the recognition of a $29.8&#160;million loss, which
      is reflected in equity in net (income) loss of affiliates in the accompanying
      statement of operations for the year ended December&#160;31, 2005. In addition,
      as part of the restructurings, a new joint venture partner, Comer Holdings,
      LLC,
      acquired a 51% ownership interest in Integrated Manufacturing and Assembly,
      LLC
      (formerly BAS) and CL Automotive, LLC (formerly JLA) with Lear retaining a
      49%
      ownership interest in both of these ventures. Upon the completion of these
      restructurings, which were effective December&#160;31, 2005, it was determined
      that both of these ventures are variable interest entities and that the Company
      is the primary beneficiary due to its financing of the ventures through member
      loans and through various amendments to the respective operating agreements.
      Accordingly, the assets and liabilities of these ventures are reflected in
      the
      Company&#8217;s consolidated financial statements. The equity interests of the
      ventures not owned by the Company are reflected as minority interests in the
      Company&#8217;s consolidated financial statements as of December&#160;31, 2005. The
      operating results of these ventures are included in the consolidated statements
      of operations from the date of consolidation, December&#160;31, 2005. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">In
      January&#160;2005, the Company acquired an additional 29% of Lear Furukawa
      Corporation (&#8220;Lear Furukawa&#8221;) for $2.3&#160;million, increasing its ownership
      interest to 80%. The acquisition was accounted for as a purchase, and
      accordingly, the assets purchased and liabilities assumed are reflected in
      the
      Company&#8217;s consolidated financial statements. The operating results of Lear
      Furukawa are included in the consolidated statement of operations from the
      date
      of acquisition. The operating results of the Company, after giving pro forma
      effect to this acquisition, are not materially different from reported results.
      Previously, Lear Furukawa was accounted for under the equity method as
      shareholder resolutions required a two-thirds majority vote for approval of
      corporate actions. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">In
      July&#160;2005, the Company began reflecting the financial position and results
      of operations of Shenyang Lear Automotive Seating and Interior Systems Co.,
      Ltd.
      (&#8220;Shenyang&#8221;) in its consolidated financial statements, due to a change in the
      approval rights granted to the minority shareholder. Previously, Shenyang was
      accounted for under the equity method as certain shareholder resolutions
      required unanimous shareholder approval. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Also
      in
      2005, the Company divested its ownership interest in Precision Fabrics Group,
      Inc. (&#8220;Precision Fabrics&#8221;) and recognized a charge of $16.9&#160;million. This
      charge is reflected in equity in net (income) loss of affiliates in the
      consolidated statement of operations for the year ended December&#160;31, 2005.
      In addition, in 2005, the Company sold its ownership interests in Klingel
      Italiana S.R.L and dissolved Lear-NHK Seating and Interior Co., Ltd. </div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>2004</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">In
      December&#160;2004, the Company formed Dong Kwang Lear Yuhan Hoesa, a joint
      venture with Dong Kwang Tech Co., Ltd., to manufacture and supply seat systems
      in Korea. In October&#160;2004, the Company formed Beijing Lear Dymos Automotive
      Seating and Interior Co., Ltd., a joint venture with Dymos Incorporated, to
      manufacture and supply seat systems in China. In February&#160;2004, the Company
      formed two joint ventures, Lear-Kyungshin Sales and Engineering LLC and Honduras
      Electrical Distribution Systems S. de R.L. de C.V. (collectively, the &#8220;Kyungshin
      affiliates&#8221;), with Kyungshin Industrial Co., Ltd. to manufacture and supply wire
      harnesses. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Also
      in
      2004, the Company sold its ownership interests in Corporate Eagle Two, L.L.C.,
      Saturn Electronics Texas, L.L.C. and Nawon Ind. Co., Ltd. (&#8220;Nawon&#8221;). </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">In
      conjunction with the acquisition of GHW Grote &amp; Hartmann GmbH in
      July&#160;2004, the Company assumed a 40% ownership interest in Klingel Italiana
      S.R.L. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-26</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
</div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt" align="center"><strong>LEAR CORPORATION AND
      SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>(7) Short-Term
      Borrowings</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      Company utilizes other uncommitted lines of credit as needed for its short-term
      working capital fluctuations. As of December&#160;31, 2006, the Company had
      unused unsecured lines of credit available from banks of $165.0&#160;million,
      subject to certain restrictions imposed by the New Credit Agreement (Note 8,
      &#8220;Long-Term Debt&#8221;). As of December&#160;31, 2006 and 2005, the weighted average
      interest rate on outstanding borrowings was 4.0% and 5.0%, respectively. </div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>(8) Long-Term
      Debt</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 6.65pt; TEXT-INDENT: 18pt">A
      summary of long-term debt and the related weighted average interest rates,
      including the effect of hedging activities described in Note 14, &#8220;Financial
      Instruments,&#8221; is shown below (in millions): </div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="232">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="34">
            </td>
            <td width="12">
            </td>
            <td width="44">
            </td>
            <td width="20">
            </td>
            <td width="5">
            </td>
            <td width="34">
            </td>
            <td width="12">
            </td>
            <td width="44">
            </td>
            <td width="8">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="310">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="9" valign="bottom" width="285" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>December&#160;31,</strong></div>
            </td>
            <td valign="bottom" width="11">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="310">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="4" valign="bottom" width="129">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2006</strong></div>
            </td>
            <td valign="bottom" width="27">&#160;</td>
            <td colspan="4" valign="bottom" width="129" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2005</strong></div>
            </td>
            <td valign="bottom" width="11">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="310">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt"><strong>Debt
                Instrument</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="52" style="border-top: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Long-Term<br>Debt</strong></div>
            </td>
            <td valign="bottom" width="16" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="59" style="border-top: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Weighted<br>Average<br>Interest
                Rate</strong></div>
            </td>
            <td valign="bottom" width="27">&#160;</td>
            <td colspan="2" valign="bottom" width="52">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Long-Term<br>Debt</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="59" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Weighted<br>Average<br>Interest
                Rate</strong></div>
            </td>
            <td valign="bottom" width="11">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="310" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="45" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="59" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="27">&#160;</td>
            <td valign="bottom" width="7" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="45" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="59">&#160;</td>
            <td valign="bottom" width="11">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="310">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Amended
                and Restated Primary Credit
                Facility&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">997.0</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="59">
              <div style="MARGIN: 0pt" align="right">7.49</div>
            </td>
            <td valign="bottom" width="27">
              <div style="MARGIN: 0pt" align="center">%&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">400.0</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="59">
              <div style="MARGIN: 0pt" align="right">5.67</div>
            </td>
            <td valign="bottom" width="11">
              <div style="MARGIN: 0pt">%</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="310">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">8.50%&#160;Senior
                Notes, due 2013</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">300.0</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="59">
              <div style="MARGIN: 0pt" align="right">8.50</div>
            </td>
            <td valign="bottom" width="27">
              <div style="MARGIN: 0pt">%</div>
            </td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="59">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="11">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="310">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">8.75%&#160;Senior
                Notes, due 2016</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">600.0</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="59">
              <div style="MARGIN: 0pt" align="right">8.75</div>
            </td>
            <td valign="bottom" width="27">
              <div style="MARGIN: 0pt">%</div>
            </td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="59">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="11">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="310">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">5.75%&#160;Senior
                Notes, due 2014</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">399.3</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="59">
              <div style="MARGIN: 0pt" align="right">5.635</div>
            </td>
            <td valign="bottom" width="27">
              <div style="MARGIN: 0pt">%</div>
            </td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">399.3</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="59">
              <div style="MARGIN: 0pt" align="right">5.635</div>
            </td>
            <td valign="bottom" width="11">
              <div style="MARGIN: 0pt">%</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="310">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Zero-Coupon
                Convertible Senior Notes, due 2022</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">3.6</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="59">
              <div style="MARGIN: 0pt" align="right">4.75</div>
            </td>
            <td valign="bottom" width="27">
              <div style="MARGIN: 0pt">%</div>
            </td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">300.1</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="59">
              <div style="MARGIN: 0pt" align="right">4.75</div>
            </td>
            <td valign="bottom" width="11">
              <div style="MARGIN: 0pt">%</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="310">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">8.125%&#160;Senior
                Notes, due 2008</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">73.3</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="59">
              <div style="MARGIN: 0pt" align="right">8.125</div>
            </td>
            <td valign="bottom" width="27">
              <div style="MARGIN: 0pt">%</div>
            </td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">295.6</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="59">
              <div style="MARGIN: 0pt" align="right">8.125</div>
            </td>
            <td valign="bottom" width="11">
              <div style="MARGIN: 0pt">%</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="310">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">8.11%&#160;Senior
                Notes, due 2009</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">41.4</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="59">
              <div style="MARGIN: 0pt" align="right">8.11</div>
            </td>
            <td valign="bottom" width="27">
              <div style="MARGIN: 0pt">%</div>
            </td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">800.0</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="59">
              <div style="MARGIN: 0pt" align="right">8.35</div>
            </td>
            <td valign="bottom" width="11">
              <div style="MARGIN: 0pt">%</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="310">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Other</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="45" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">45.5</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="59">
              <div style="MARGIN: 0pt" align="right">7.06</div>
            </td>
            <td valign="bottom" width="27">
              <div style="MARGIN: 0pt">%</div>
            </td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="45" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">57.5</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="59">
              <div style="MARGIN: 0pt" align="right">6.34</div>
            </td>
            <td valign="bottom" width="11">
              <div style="MARGIN: 0pt">%</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="310">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">2,460.1</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="59">&#160;</td>
            <td valign="bottom" width="27">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">2,252.5</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="59">&#160;</td>
            <td valign="bottom" width="11">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="310">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Less
                &#8212; current portion</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="45" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(25.6</div>
            </td>
            <td valign="bottom" width="16" style="border-bottom: white 0.5pt solid;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="59">&#160;</td>
            <td valign="bottom" width="27">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="45" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(9.4</div>
            </td>
            <td valign="bottom" width="16" style="border-bottom: white 0.5pt solid;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="59">&#160;</td>
            <td valign="bottom" width="11">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="310">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Long-term
                debt</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="45" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">2,434.5</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="59">&#160;</td>
            <td valign="bottom" width="27">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="45" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">2,243.1</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="59">&#160;</td>
            <td valign="bottom" width="11">&#160;</td>
          </tr>

      </table>
    </div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>Primary Credit
      Facility</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">On
      April&#160;25, 2006, the Company entered into a $2.7&#160;billion Amended and
      Restated Credit and Guarantee Agreement (the &#8220;New Credit Agreement&#8221;), which
      provides for maximum revolving borrowing commitments of $1.7&#160;billion and a
      term loan facility of $1.0&#160;billion. The New Credit Agreement replaced the
      Company&#8217;s prior primary credit facility. The $1.7&#160;billion revolving credit
      facility matures on March&#160;23, 2010, and the $1.0&#160;billion term loan
      facility matures on April&#160;25, 2012. The New Credit Agreement provides for
      multicurrency borrowings in a maximum aggregate amount of $750&#160;million,
      Canadian borrowings in a maximum aggregate amount of $200&#160;million and
      swing-line borrowings in a maximum aggregate amount of $300&#160;million, the
      commitments for which are part of the aggregate revolving credit facility
      commitment. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Of the
      $1.0&#160;billion proceeds under the term loan facility, $400.0&#160;million was
      used to repay the term loan facility under the Company&#8217;s prior primary credit
      facility and $521.1&#160;million was used to repurchase outstanding zero-coupon
      convertible senior notes with an accreted value of $303.2&#160;million, Euro
      13.0&#160;million aggregate principal amount of the Company&#8217;s senior notes due
      2008 and $206.6&#160;million aggregate principal amount of the Company&#8217;s senior
      notes due 2009. In connection with these transactions, the Company recognized
      a
      net gain of $0.6&#160;million on the extinguishment of debt, which is included
      in other expense, net in the consolidated statement of operations for the year
      ended December&#160;31, 2006. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-27</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
</div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt" align="center"><strong>LEAR CORPORATION AND
      SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>(8) Long-Term Debt
&#8211;
(continued)</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 6.65pt; TEXT-INDENT: 18pt">As
      of
      December&#160;31, 2006, the Company had $997.0&#160;million in borrowings
      outstanding under the New Credit Agreement, all of which were outstanding under
      the term loan facility. There were no revolving borrowings outstanding. As
      of
      December&#160;31, 2006, the commitment fee on the $1.7&#160;billion revolving
      credit facility was 0.50% per annum. Borrowings and repayments under the
      Company&#8217;s New Credit Agreement (as well as predecessor facilities) are shown
      below (in millions): </div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="357">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="37">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="37">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="476" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt"><strong>Year</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="57" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Borrowings</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="56" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Repayments</strong></div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="476">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="50">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="50">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="476">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">2006&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">11,978.2</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">11,381.2</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="476">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">2005</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">8,942.4</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">8,542.4</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="476">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">2004</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">4,153.1</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">4,153.1</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>Zero-Coupon
      Convertible Senior Notes </i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">In
      February&#160;2002, the Company issued $640.0&#160;million aggregate principal
      amount at maturity of zero-coupon convertible senior notes due 2022 (the
&#8220;Convertible Notes&#8221;), yielding gross proceeds of $250.3&#160;million. The
      Convertible Notes are unsecured and rank equally with the Company&#8217;s other
      unsecured senior indebtedness, including the Company&#8217;s other senior notes. Each
      Convertible Note of $1,000 principal amount at maturity was issued at a price
      of
      $391.06, representing a yield to maturity of 4.75%. Holders of the Convertible
      Notes may convert their notes at any time on or before the maturity date at
      a
      conversion rate, subject to adjustment, of 7.5204 shares of the Company&#8217;s common
      stock per note, provided that the average per share price of the Company&#8217;s
      common stock for the 20 trading days immediately prior to the conversion date
      is
      at least a specified percentage, beginning at 120% upon issuance and declining
      1/2% each year thereafter to 110% at maturity, of the accreted value of the
      Convertible Note, divided by the conversion rate (the &#8220;Contingent Conversion
      Trigger&#8221;). The Convertible Notes are also convertible (1) if the long-term
      credit rating assigned to the Convertible Notes by either Moody&#8217;s Investors
      Service or Standard &amp; Poor&#8217;s Ratings Services is reduced below Ba3 or BB-,
      respectively (which is currently the case), or either ratings agency withdraws
      its long-term credit rating assigned to the notes, (2) if the Company calls
      the
      Convertible Notes for redemption or (3) upon the occurrence of specified other
      events. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">As
      discussed above, during the second quarter of 2006, the Company repurchased
      substantially all of the Convertible Notes with borrowings under its New Credit
      Agreement. As of December&#160;31, 2006, notes with an accreted value of
      $3.6&#160;million were outstanding. </div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>Other Senior
      Notes
</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">In
      November&#160;2006, the Company issued $300&#160;million aggregate principal
      amount of unsecured 8.50% senior notes due 2013 (the &#8220;2013 Notes&#8221;) and
      $600&#160;million aggregate principal amount of unsecured 8.75% senior notes due
      2016 (the &#8220;2016 Notes&#8221;). The notes are unsecured and rank equally with the
      Company&#8217;s other unsecured senior indebtedness, including the Company&#8217;s other
      senior notes. The proceeds from these notes were used to repurchase the
      Company&#8217;s senior notes due 2008 (the &#8220;2008 Notes&#8221;) and senior notes due 2009
      (the &#8220;2009 Notes&#8221;). The Company repurchased 2008 Notes and 2009 Notes with an
      aggregate principal amount of Euro 181.4&#160;million and $552.0&#160;million,
      respectively, for an aggregate purchase price of $835.8&#160;million, including
      related fees. In connection with these transactions, the Company recognized
      a
      loss of $48.5&#160;million on the extinguishment of debt, which is included in
      other expense, net in the consolidated statement of operations for the year
      ended December&#160;31, 2006. In January&#160;2007, the Company completed an
      exchange offer of the 2013 Notes and the 2016 Notes for substantially identical
      notes registered under the Securities Act of 1933, as amended. Interest on
      both
      the 2013 Notes and 2016 Notes is payable on June&#160;1 and December&#160;1 of
      each year. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-28</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
</div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt" align="center"><strong>LEAR CORPORATION AND
      SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>(8) Long-Term Debt
&#8211;
(continued)</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 6.65pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 11pt">The
      Company may redeem all or part of the 2013 Notes and the 2016 Notes, at its
      option, at any time subsequent to December&#160;1, 2010, in the case of the 2013
      Notes, and December&#160;1, 2011, in the case of the 2016 Notes, at the
      redemption prices set forth below, together with any interest accrued but not
      yet paid to the date of redemption. These redemption prices, expressed as a
      percentage of the principal amount due, are set forth below: </div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="346">
            </td>
            <td width="13">
            </td>
            <td width="38">
            </td>
            <td width="8">
            </td>
            <td width="13">
            </td>
            <td width="39">
            </td>
            <td width="8">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="461">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td colspan="4" valign="bottom" width="133" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Twelve-Month
                Period<br>Commencing
                December&#160;1,</strong></div>
            </td>
            <td valign="bottom" width="11">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="461">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="51">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2013
                Notes</strong></div>
            </td>
            <td valign="bottom" width="11">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="52" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2016
                Notes</strong></div>
            </td>
            <td valign="bottom" width="11">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="461">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="51" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="11" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="52">&#160;</td>
            <td valign="bottom" width="11">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="461">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">2010&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">104.250</div>
            </td>
            <td valign="bottom" width="11">
              <div style="MARGIN: 0pt">%</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">N/A</div>
            </td>
            <td valign="bottom" width="11">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="461">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">2011</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">102.125</div>
            </td>
            <td valign="bottom" width="11">
              <div style="MARGIN: 0pt">%</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">104.375</div>
            </td>
            <td valign="bottom" width="11">
              <div style="MARGIN: 0pt">%</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="461">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">2012</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">100.0</div>
            </td>
            <td valign="bottom" width="11">
              <div style="MARGIN: 0pt">%</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">102.917</div>
            </td>
            <td valign="bottom" width="11">
              <div style="MARGIN: 0pt">%</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="461">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">2013</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">100.0</div>
            </td>
            <td valign="bottom" width="11">
              <div style="MARGIN: 0pt">%</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">101.458</div>
            </td>
            <td valign="bottom" width="11">
              <div style="MARGIN: 0pt">%</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="461">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">2014
                and thereafter</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">100.0</div>
            </td>
            <td valign="bottom" width="11">
              <div style="MARGIN: 0pt">%</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">100.0</div>
            </td>
            <td valign="bottom" width="11">
              <div style="MARGIN: 0pt">%</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 11pt">The
      Company may redeem all or part of the 2013 Notes and the 2016 Notes, at its
      option, at any time prior to December&#160;1, 2010, in the case of the 2013
      Notes, and December&#160;1, 2011, in the case of the 2016 Notes, at the greater
      of (a) 100% of the principal amount of the notes to be redeemed or (b) the
      sum
      of the present values of the redemption price set forth above and the remaining
      scheduled interest payments from the redemption date through December&#160;1,
      2010, in the case of the 2013 Notes, or December&#160;1, 2011, in the case of
      the 2016 Notes, discounted to the redemption date on a semiannual basis at
      the
      applicable treasury rate plus 50 basis points, together with any interest
      accrued but not yet paid to the date of redemption. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 11pt">In
      addition to the senior notes discussed above, the Company has outstanding
      $399.3&#160;million aggregate principal amount of senior notes due 2014 (the
&#8220;2014 Notes&#8221;). Interest on the 2014 Notes is payable on February&#160;1 and
      August&#160;1 of each year. The Company also has outstanding Euro
      55.6&#160;million ($73.3&#160;million based on the exchange rate in effect as of
      December&#160;31, 2006) aggregate principal amount of 2008 Notes. Interest on
      the 2008 Notes is payable on April&#160;1 and October&#160;1 of each year.
      During 2006, the Company repurchased an aggregate principal amount of Euro
      194.4&#160;million ($257.0&#160;million based on the exchange rates in effect as
      of the transaction dates) of the 2008 Notes using proceeds from the issuance
      of
      the 2013 Notes and 2016 Notes and borrowings under the New Credit Agreement.
      In
      addition, the Company has outstanding $41.4&#160;million aggregate principal
      amount of 2009 Notes. Interest on the 2009 Notes is payable on May&#160;15 and
      November&#160;15 of each year. During 2006, the Company repurchased an aggregate
      principal amount of $758.6&#160;million of the 2009 Notes using proceeds from
      the issuance of the 2013 Notes and 2016 Notes and borrowings under the New
      Credit Agreement. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 11pt">The
      Company may redeem all or part of the 2014 Notes, the 2008 Notes and the 2009
      Notes, at its option, at any time, at the greater of (a) 100% of the principal
      amount of the notes to be redeemed or (b) the sum of the present values of
      the
      remaining scheduled payments of principal and interest thereon from the
      redemption date to the maturity date, discounted to the redemption date on
      a
      semiannual basis at the applicable treasury rate plus 20 basis points in the
      case of the 2014 Notes, at the Bund rate plus 50 basis points in the case of
      the
      2008 Notes and at the applicable treasury rate plus 50 basis points in the
      case
      of the 2009 Notes, together with any interest accrued but not yet paid to the
      date of the redemption. </div>
    <div style="MARGIN-TOP: 8.35pt; MARGIN-BOTTOM: 0pt"><strong><i>Guarantees</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 11pt">The
      senior notes of the Company are senior unsecured obligations and rank pari
      passu
      in right of payment with all of the Company&#8217;s existing and future unsubordinated
      unsecured indebtedness. The Company&#8217;s obligations under the senior notes are
      guaranteed, on a joint and several basis, by certain of its subsidiaries, which
      are primarily domestic subsidiaries and all of which are directly or indirectly
      wholly owned by the Company (Note 18, &#8220;Supplemental Guarantor Condensed
      Consolidating Financial Statements&#8221;). The Company&#8217;s obligations under the New
      Credit Agreement are secured by a pledge of all or a portion of the capital
      stock of certain of its subsidiaries, including substantially all of its
      first-tier subsidiaries, and are partially secured by a security interest in
      the
      Company&#8217;s assets and the assets of certain of its domestic subsidiaries. In
      addition, the Company&#8217;s obligations under the New Credit Agreement are
      guaranteed by the same subsidiaries that guarantee the Company&#8217;s obligations
      under the senior notes.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 11pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-29</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
</div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt" align="center"><strong>LEAR CORPORATION AND
      SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>(8) Long-Term Debt
&#8211;
(continued)</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>Covenants</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The New
      Credit Agreement contains certain affirmative and negative covenants, including
      (i) limitations on fundamental changes involving the Company or its
      subsidiaries, asset sales and restricted payments, (ii) a limitation on
      indebtedness with a maturity shorter than the term loan facility, (iii) a
      limitation on aggregate subsidiary indebtedness to an amount which is no more
      than 4% of consolidated total assets, (iv) a limitation on aggregate secured
      indebtedness to an amount which is no more than $100&#160;million and (v)
      requirements that the Company maintain an initial leverage ratio of not more
      than 4.0 to 1, as of December&#160;31, 2006, with decreases over time and an
      initial interest coverage ratio of not less than 2.50 to 1 with increases over
      time. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      leverage and interest coverage ratios, as well as the related components of
      their computation, are defined in the New Credit Agreement. The leverage ratio
      is calculated as the ratio of consolidated indebtedness to consolidated
      operating profit. For the purpose of the covenant calculation, (i) consolidated
      indebtedness is generally defined as reported debt, net of cash and excludes
      transactions related to the Company&#8217;s asset-backed securitization and factoring
      facilities and (ii) consolidated operating profit is generally defined as net
      income excluding income taxes, interest expense, depreciation and amortization
      expense, other income and expense, minority interests in income of subsidiaries
      in excess of net equity earnings in affiliates, certain restructuring and other
      non-recurring charges, extraordinary gains and losses and other specified
      non-cash items. Consolidated operating profit is a non-GAAP financial measure
      that is presented not as a measure of operating results, but rather as a measure
      used to determine covenant compliance under the Company&#8217;s primary credit
      facility. The interest coverage ratio is calculated as the ratio of consolidated
      operating profit to consolidated interest expense. For the purpose of the
      covenant calculation, consolidated interest expense is generally defined as
      interest expense plus any discounts or expenses related to the Company&#8217;s
      asset-backed securitization facility less amortization of deferred finance
      fees
      and interest income. As of December&#160;31, 2006, the Company was in compliance
      with all covenants set forth in the New Credit Agreement. The Company&#8217;s leverage
      and interest coverage ratios were 2.4 to 1 and 4.2 to 1, respectively. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 6.65pt; TEXT-INDENT: 18pt">Reconciliations
      of (i) consolidated indebtedness to reported debt, (ii) consolidated operating
      profit to income before provision for income taxes and cumulative effect of
      a
      change in accounting principle and (iii) consolidated interest expense to
      reported interest expense are shown below (in millions): </div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="405">
            </td>
            <td width="13">
            </td>
            <td width="7">
            </td>
            <td width="42">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="540">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td colspan="2" valign="bottom" width="65" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>December&#160;31,<br>2006</strong></div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="540">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="56">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="540">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Consolidated
                indebtedness&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="9">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="56">
              <div style="MARGIN: 0pt" align="right">1,996.7</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="540">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Cash
                and cash equivalents</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="9" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="56" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">502.7</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="540">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Reported
                debt</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="9" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="56" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">2,499.4</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-30</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
</div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt" align="center"><strong>LEAR CORPORATION AND
      SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 6.65pt"><strong>(8) Long-Term
      Debt
&#8211; (continued)</strong></div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="401">
            </td>
            <td width="13">
            </td>
            <td width="8">
            </td>
            <td width="41">
            </td>
            <td width="3">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="534">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td colspan="2" valign="bottom" width="66" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Year
                Ended<br>December&#160;31,<br>2006</strong></div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="534">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="55">&#160;</td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="534">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Consolidated
                operating profit</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="10">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="55">
              <div style="MARGIN: 0pt" align="right">835.9</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="534">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Depreciation
                and amortization</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="55">
              <div style="MARGIN: 0pt" align="right">(392.2</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="534">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Consolidated
                interest expense</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="55">
              <div style="MARGIN: 0pt" align="right">(200.4</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="534">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Loss
                on divestiture of interior business</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="55">
              <div style="MARGIN: 0pt" align="right">(636.0</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="534">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Other
                expense, net (excluding certain costs related to asset-backed
                securitization facility)</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="55">
              <div style="MARGIN: 0pt" align="right">(77.7</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="534">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Restructuring
                charges</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="55">
              <div style="MARGIN: 0pt" align="right">(105.5</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="534">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Impairment
                charges</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="55">
              <div style="MARGIN: 0pt" align="right">(12.9</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="534">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Other
                non-cash items</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="10" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="55" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(64.6</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="534">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Loss
                before provision for income taxes, minority interests in consolidated
                subsidiaries, equity<br>in net income of affiliates and cumulative effect
                of a change in accounting principle</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="10" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="55" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">(653.4</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: #ccffcc 3pt double;">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="534">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Consolidated
                interest expense</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="10">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="55">
              <div style="MARGIN: 0pt" align="right">200.4</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="534">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Certain
                costs related to asset-backed securitization facility</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="55">
              <div style="MARGIN: 0pt" align="right">(8.0</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="534">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Amortization
                of deferred financing fees</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="55">
              <div style="MARGIN: 0pt" align="right">8.7</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="534">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Bank
                facility and other fees</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="10" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="55" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">8.7</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="534">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Reported
                interest expense</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="10" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="55" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">209.8</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>

      </table>
    </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The New
      Credit Agreement also contains customary events of default, including an event
      of default triggered by a change of control of the Company. The senior notes
      due
      2013 and 2016 (having an aggregate principal amount outstanding of
      $900&#160;million as of December&#160;31, 2006) provide holders of the notes the
      right to require the Company to repurchase all or any part of their notes at
      a
      purchase price equal to 101% of their principal amount, plus accrued and unpaid
      interest, upon a &#8220;change of control&#8221; (as defined in the indenture governing the
      notes). The transaction contemplated by the Agreement and Plan of Merger with
      affiliates of American Real Estate Partners, L.P. would not constitute a change
      of control for these purposes (Note 17, &#8220;Subsequent Event&#8221;). The indentures
      governing the Company&#8217;s other senior notes do not contain a change in control
      repurchase obligation. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">With
      the
      exception of the Convertible Notes, the senior notes also contain covenants
      restricting the ability of the Company and its subsidiaries to incur liens
      and
      to enter into sale and leaseback transactions. With respect to the indenture
      governing the Company&#8217;s Convertible Notes, the Company received consents from a
      majority of the holders of the Convertible Notes allowing the Company to execute
      a supplemental indenture which eliminated the covenants and related provisions
      in the indenture that restricted the Company&#8217;s ability to incur liens and to
      enter into sale and leaseback transactions. As of December&#160;31, 2006, the
      Company was in compliance with all covenants and other requirements set forth
      in
      its senior notes. </div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>Other</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">As of
      December&#160;31, 2006, other long-term debt was principally made up of amounts
      outstanding under term loans and capital leases. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-31</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
</div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt" align="center"><strong>LEAR CORPORATION AND
      SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 6.65pt"><strong>(8) Long-Term
      Debt
&#8211; (continued)</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>Scheduled
      Maturities</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 6.65pt; TEXT-INDENT: 18pt">As
      of
      December&#160;31, 2006, the scheduled maturities of long-term debt for the five
      succeeding years are shown below (in millions): </div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="417">
            </td>
            <td width="14">
            </td>
            <td width="6">
            </td>
            <td width="29">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="556" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt"><strong>Year</strong></div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td colspan="2" valign="bottom" width="48" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Maturities</strong></div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="556">&#160;</td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="39">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="556">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">2007&#160;&#160;
&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="19">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="39">
              <div style="MARGIN: 0pt" align="right">25.6</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="556">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">2008</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="39">
              <div style="MARGIN: 0pt" align="right">85.9</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="556">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">2009</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="39">
              <div style="MARGIN: 0pt" align="right">53.1</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="556">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">2010</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="39">
              <div style="MARGIN: 0pt" align="right">10.7</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="556">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">2011</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="39">
              <div style="MARGIN: 0pt" align="right">8.6</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>(9) Income
      Taxes</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 6.65pt; TEXT-INDENT: 18pt">A
      summary of income (loss) before provision for income taxes, minority interests
      in consolidated subsidiaries and equity in net (income) loss of affiliates
      and
      the components of provision for income taxes is shown below (in millions):
      </div>
    <div style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt">&#160;</div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="318">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="25">
            </td>
            <td width="18">
            </td>
            <td width="7">
            </td>
            <td width="33">
            </td>
            <td width="15">
            </td>
            <td width="5">
            </td>
            <td width="22">
            </td>
            <td width="3">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="424">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="8" valign="bottom" width="178" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>For
                the Year Ended
                December&#160;31,</strong></div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="424">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="41">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2006</strong></div>
            </td>
            <td valign="bottom" width="24">&#160;</td>
            <td colspan="2" valign="bottom" width="54">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2005</strong></div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td colspan="2" valign="bottom" width="36" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2004</strong></div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="424">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="34" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="24">&#160;</td>
            <td valign="bottom" width="10" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="30">&#160;</td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="424">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Income
                (loss) before provision for income taxes, minority interests
                in<br>consolidated subsidiaries, equity in net (income) loss of affiliates
                and<br>cumulative effect of a change in accounting principle</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="34">&#160;</td>
            <td valign="bottom" width="24">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="44">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="30">&#160;</td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="424">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Domestic</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">(785.3</div>
            </td>
            <td valign="bottom" width="24">
              <div style="MARGIN: 0pt">) &#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="10">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">(1,520.8</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="30">
              <div style="MARGIN: 0pt" align="right">47.7</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="424">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Foreign</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="34" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">131.9</div>
            </td>
            <td valign="bottom" width="24">&#160;</td>
            <td valign="bottom" width="10" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">392.2</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="30" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">516.6</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="424">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="34" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">(653.4</div>
            </td>
            <td valign="bottom" width="24" style="border-bottom: #ccffcc 3pt double;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="10" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="44" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">(1,128.6</div>
            </td>
            <td valign="bottom" width="21" style="border-bottom: #ccffcc 3pt double;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="30" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">564.3</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="424">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Domestic
                provision for income taxes:</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="34">&#160;</td>
            <td valign="bottom" width="24">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="44">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="30">&#160;</td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="424">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Current
                provision (benefit)</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">30.6</div>
            </td>
            <td valign="bottom" width="24">&#160;</td>
            <td valign="bottom" width="10">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">(12.9</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="30">
              <div style="MARGIN: 0pt" align="right">7.2</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="424">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Deferred
                provision (benefit)</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="34" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(1.6</div>
            </td>
            <td valign="bottom" width="24" style="border-bottom: white 0.5pt solid;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="10" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">65.3</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="30" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(4.0</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: white 0.5pt solid;">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="424">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 30pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Total
                domestic provision</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="34" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">29.0</div>
            </td>
            <td valign="bottom" width="24">&#160;</td>
            <td valign="bottom" width="10" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">52.4</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="30" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">3.2</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="424">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Foreign
                provision for income taxes:</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="34">&#160;</td>
            <td valign="bottom" width="24">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="44">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="30">&#160;</td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="424">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Current
                provision</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">79.3</div>
            </td>
            <td valign="bottom" width="24">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">162.5</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="30">
              <div style="MARGIN: 0pt" align="right">112.1</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="424">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Deferred
                provision (benefit)</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="34" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(53.4</div>
            </td>
            <td valign="bottom" width="24" style="border-bottom: white 0.5pt solid;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="10" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(20.6</div>
            </td>
            <td valign="bottom" width="21" style="border-bottom: white 0.5pt solid;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="30" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">12.7</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="424">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 30pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Total
                foreign provision</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="34" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">25.9</div>
            </td>
            <td valign="bottom" width="24">&#160;</td>
            <td valign="bottom" width="10" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">141.9</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="30" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">124.8</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="424">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Provision
                for income taxes</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="34" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">54.9</div>
            </td>
            <td valign="bottom" width="24">&#160;</td>
            <td valign="bottom" width="10" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="44" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">194.3</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="30" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">128.0</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>

      </table>
    </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      domestic provision includes withholding taxes related to dividends and royalties
      paid by the Company&#8217;s foreign subsidiaries. The foreign deferred provision
      (benefit) includes the benefit of prior unrecognized net operating loss
      carryforwards of $14.1&#160;million, $1.8&#160;million and $5.7&#160;million for
      the years ended December&#160;31, 2006, 2005 and 2004, respectively. </div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-32</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
</div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt" align="center"><strong>LEAR CORPORATION AND
      SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>(9) Income Taxes
&#8211;
(continued)</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 6.65pt; TEXT-INDENT: 18pt">A
      summary of the differences between the provision (benefit) for income taxes
      calculated at the United States federal statutory income tax rate of 35% and
      the
      consolidated provision for income taxes is shown below (in millions): </div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="330">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="25">
            </td>
            <td width="15">
            </td>
            <td width="5">
            </td>
            <td width="25">
            </td>
            <td width="15">
            </td>
            <td width="5">
            </td>
            <td width="22">
            </td>
            <td width="3">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="441">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="8" valign="bottom" width="161" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>For
                the Year Ended
                December&#160;31,</strong></div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="441">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="41">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2006</strong></div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td colspan="2" valign="bottom" width="41">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2005</strong></div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td colspan="2" valign="bottom" width="37" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2004</strong></div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="441">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="34" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="34" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="30">&#160;</td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="441">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Income
                (loss) before provision for income taxes, minority interests
                in<br>consolidated subsidiaries, equity in net (income) loss of affiliates
                and<br>cumulative effect of a change in accounting principle multiplied
                by
                the<br>United States federal statutory rate </div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">(228.7 </div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">(395.0 </div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="30">
              <div style="MARGIN: 0pt" align="right">197.5 </div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="441">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Differences
                in income taxes on foreign earnings, losses and remittances </div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">10.2 </div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">(34.0 </div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="30">
              <div style="MARGIN: 0pt" align="right">(46.5 </div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="441">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Valuation
                allowance adjustments </div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">259.4 </div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">275.2 </div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="30">
              <div style="MARGIN: 0pt" align="right">13.3 </div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="441">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Research
                and development credits </div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">(11.4 </div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">(22.6 </div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="30">
              <div style="MARGIN: 0pt" align="right">(16.6 </div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="441">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Goodwill
                impairment </div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">1.0 </div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">354.4 </div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="30">
              <div style="MARGIN: 0pt" align="right">&#8212; </div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="441">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Investment
                credit / grants </div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">(6.7 </div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">(22.8 </div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="30">
              <div style="MARGIN: 0pt" align="right">(7.4 </div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="441">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Other
                </div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="34" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">31.1 </div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="34" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">39.1 </div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="30" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(12.3 </div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: #ccffcc 0.5pt solid;">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="441">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Provision
                for income taxes </div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="34" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">54.9 </div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="34" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">194.3 </div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="30" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">128.0 </div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>

      </table>
    </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">For the
      years ended December&#160;31, 2006, 2005 and 2004, income in foreign
      jurisdictions with tax holidays was $109.2&#160;million, $54.7&#160;million and
      $143.4&#160;million, respectively. Such tax holidays generally expire from 2007
      through 2018. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 6.65pt; TEXT-INDENT: 18pt">Deferred
      income taxes represent temporary differences in the recognition of certain
      items
      for income tax and financial reporting purposes. A summary of the components
      of
      the net deferred income tax asset (liability) is shown below (in millions):
      </div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="369">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="30">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="26">
            </td>
            <td width="3">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="493">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td colspan="5" valign="bottom" width="106" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>December&#160;31,</strong></div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="493">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td colspan="2" valign="bottom" width="47">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2006</strong></div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td colspan="2" valign="bottom" width="42" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2005</strong></div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="493">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="40" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">&#160;</td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="493">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Deferred
                income tax assets:</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">&#160;</td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="493">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Tax
                loss
                carryforwards&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt" align="justify">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt" align="justify">$</div>
            </td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">451.1</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">259.0</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="493">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Tax
                credit carryforwards</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">140.1</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">85.7</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="493">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Retirement
                benefit plans</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">113.5</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">90.1</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="493">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Accrued
                liabilities</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">66.7</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">71.7</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="493">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Reserves
                related to current assets</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">41.1</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">29.7</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="493">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Self-insurance
                reserves</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">19.6</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">20.6</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="493">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Defined
                benefit plan liability adjustments</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">84.0</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">39.5</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="493">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Deferred
                compensation</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">15.3</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">20.2</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="493">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Recoverable
                customer engineering and tooling</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">57.5</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="493">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Long-term
                asset basis differences</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">102.2</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="493">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Derivative
                instruments and hedging</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">8.2</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">22.0</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="493">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Other</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">0.2</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="35" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="493">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">1,042.0</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">696.0</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="493">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Valuation
                allowance</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(843.9</div>
            </td>
            <td valign="bottom" width="17" style="border-bottom: white 0.5pt solid;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="35" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(478.3</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: white 0.5pt solid;">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="493">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="justify">$</div>
            </td>
            <td valign="bottom" width="40" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">198.1</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="35" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">217.7</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>

      </table>
    </div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-33</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
</div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt" align="center"><strong>LEAR CORPORATION AND
      SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 6.65pt"><strong>(9) Income Taxes
&#8211;
(continued)</strong></div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="377">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="25">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="26">
            </td>
            <td width="3">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="503">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="5" valign="bottom" width="99" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>December&#160;31,</strong></div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="503">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="41">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2006</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="41" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2005</strong></div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="503">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="34" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="34">&#160;</td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="503">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Deferred
                income tax liabilities:</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="34">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="34">&#160;</td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="503">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Long-term
                asset basis
                differences&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">(137.4</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="503">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Recoverable
                customer engineering and tooling</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">(14.7</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="503">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Undistributed
                earnings of foreign subsidiaries</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">(106.4</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">(86.8</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="503">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Other</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="34" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="34" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(4.3</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: white 0.5pt solid;">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="503">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="34" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">(121.1</div>
            </td>
            <td valign="bottom" width="16" style="border-bottom: #ccffcc 3pt double;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="34" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">(228.5</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="503">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Net
                deferred income tax asset (liability)</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="34" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">77.0</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="34" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">(10.8</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: white 3pt double;">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 6.65pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 11pt">During
      2005, the Company concluded that it was no longer more likely than not that
      it
      would realize its U.S. deferred tax assets. As a result, in the fourth quarter
      of 2005, the Company recorded a tax charge of $300.3&#160;million comprised of
      (i) a full valuation allowance in the amount of $255.0&#160;million with respect
      to its net U.S. deferred tax assets and (ii) an increase in related tax reserves
      of $45.3&#160;million. During 2006, the Company continued to incur losses in the
      United States for which no tax benefit was recorded and the related U.S.
      valuation allowance increased to $545.0&#160;million. In addition, deferred tax
      assets have been fully offset by a valuation allowance in certain foreign
      jurisdictions due to a history of operating losses. The Company intends to
      maintain these valuation allowances until it is more likely than not that the
      deferred taxes within these countries will be realized. The classification
      of
      the net deferred income tax liability is shown below (in millions): </div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="377">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="22">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="29">
            </td>
            <td width="3">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="503">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="5" valign="bottom" width="99" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>December&#160;31,</strong></div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="503">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="37">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2006</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="45" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2005</strong></div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="503">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="30" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="39">&#160;</td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="503">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Deferred
                income tax assets:</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="30">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="39">&#160;</td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="503">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Current&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="30">
              <div style="MARGIN: 0pt" align="right">83.3</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="39">
              <div style="MARGIN: 0pt" align="right">138.6</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="503">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Long-term</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="30">
              <div style="MARGIN: 0pt" align="right">110.5</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="39">
              <div style="MARGIN: 0pt" align="right">76.0</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="503">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Deferred
                income tax liabilities:</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="30">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="39">&#160;</td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="503">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Current</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="30">
              <div style="MARGIN: 0pt" align="right">(20.8</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="39">
              <div style="MARGIN: 0pt" align="right">(33.3</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt" align="center">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="503">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Long-term</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="30" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(96.0</div>
            </td>
            <td valign="bottom" width="16" style="border-bottom: #ccffcc 0.5pt solid;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="39" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(192.1</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt" align="center">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="503">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Net
                deferred income tax asset (liability)</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="30" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">77.0</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="39" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">(10.8</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: white 3pt double;">
              <div style="MARGIN: 0pt" align="center">)</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 11pt">Deferred
      income taxes have not been provided on $975.6&#160;million of certain
      undistributed earnings of the Company&#8217;s foreign subsidiaries as such amounts are
      considered to be permanently reinvested. It is not practicable to determine
      the
      unrecognized deferred income tax liability on these earnings because the actual
      tax liability on these earnings, if any, is dependent on circumstances existing
      when remittance occurs. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 11pt">The
      Company operates in multiple jurisdictions throughout the world, and its tax
      returns are periodically audited or subject to review by both domestic and
      foreign tax authorities. The Company reviews its income tax positions on a
      continuous basis and records a tax reserve when it believes a liability is
      probable and can be reasonably estimated in accordance with SFAS No. 5,
&#8220;Accounting for Contingencies.&#8221; The tax issues which resulted in reserves will
      be resolved on an item by item basis upon the occurrence of certain events,
      which may include the resolution of tax audits and the expiration of the statute
      of limitations for the relevant taxing authority to examine the Company&#8217;s tax
      position. In addition, the reserves may be affected by changes in tax laws,
      the
      issuance of new or proposed regulations or the availability of new information
      that impacts a tax exposure item. Reserves associated with income tax
      uncertainties are included in either accrued liabilities or other long-term
      liabilities and are not included as a component of deferred tax assets or
      liabilities. Interest and penalties, where applicable, are included in the
      tax
      reserves. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">As of
      December&#160;31, 2006, the Company had tax loss carryforwards of
      $1.5&#160;billion. Of the total loss carryforwards, $872.0&#160;million has no
      expiration date and $600.9&#160;million expires from 2007 through 2026. In
      addition, the Company had tax credit carryforwards of $140.1&#160;million
      comprised principally of U.S. foreign tax credits, research and development
      credits and investment tax credits that generally expire between 2015 and 2026.
      </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-34</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
</div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt" align="center"><strong>LEAR CORPORATION AND
      SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>(10) Pension and
      Other
      Postretirement Benefit Plans </strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      Company has noncontributory defined benefit pension plans covering certain
      domestic employees and certain employees in foreign countries, principally
      Canada. The Company&#8217;s salaried pension plans provide benefits based on final
      average earnings formulas. The Company&#8217;s hourly pension plans provide benefits
      under flat benefit and cash balance formulas. The Company also has contractual
      arrangements with certain employees which provide for supplemental retirement
      benefits. In general, the Company&#8217;s policy is to fund its pension benefit
      obligation based on legal requirements, tax considerations and local practices.
      </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      Company has postretirement benefit plans covering a portion of the Company&#8217;s
      domestic and Canadian employees. The Company&#8217;s postretirement benefit plans
      generally provide for the continuation of medical benefits for all eligible
      employees who complete ten years of service after age 45 and retire from the
      Company at age 55 or older. The Company does not fund its postretirement benefit
      obligation. Rather, payments are made as costs are incurred by covered retirees.
      </div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>Obligations and
      Funded Status </i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 6.65pt; TEXT-INDENT: 18pt">A
      reconciliation of the change in benefit obligation, the change in plan assets
      and the net amount recognized in the consolidated balance sheets is shown below
      (based on a September&#160;30 measurement date, in millions): </div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="284">
            </td>
            <td width="14">
            </td>
            <td width="5">
            </td>
            <td width="25">
            </td>
            <td width="13">
            </td>
            <td width="5">
            </td>
            <td width="25">
            </td>
            <td width="13">
            </td>
            <td width="5">
            </td>
            <td width="25">
            </td>
            <td width="13">
            </td>
            <td width="5">
            </td>
            <td width="28">
            </td>
            <td width="3">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="379">&#160;</td>
            <td valign="bottom" width="18">&#160;</td>
            <td colspan="11" valign="bottom" width="221" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>December&#160;31,</strong></div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="379">&#160;</td>
            <td valign="bottom" width="18">&#160;</td>
            <td colspan="5" valign="bottom" width="99" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Pension</strong></div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td colspan="5" valign="bottom" width="104" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Other
                Postretirement</strong></div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="379">&#160;</td>
            <td valign="bottom" width="18">&#160;</td>
            <td colspan="2" valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2006</strong></div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td colspan="2" valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2005</strong></div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td colspan="2" valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2006</strong></div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td colspan="2" valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2005</strong></div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="379">&#160;</td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="33">&#160;</td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="33">&#160;</td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="33">&#160;</td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="37">&#160;</td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="379">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Change
                in benefit obligation:</div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="33">&#160;</td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="33">&#160;</td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="33">&#160;</td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="37">&#160;</td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="379">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Benefit
                obligation at beginning of
                year&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="33">
              <div style="MARGIN: 0pt" align="right">788.3</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="33">
              <div style="MARGIN: 0pt" align="right">630.8</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="33">
              <div style="MARGIN: 0pt" align="right">265.5</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="37">
              <div style="MARGIN: 0pt" align="right">222.1</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="379">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Service
                cost</div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="33">
              <div style="MARGIN: 0pt" align="right">50.3</div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="33">
              <div style="MARGIN: 0pt" align="right">41.0</div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="33">
              <div style="MARGIN: 0pt" align="right">12.7</div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="37">
              <div style="MARGIN: 0pt" align="right">11.7</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="379">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Interest
                cost</div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="33">
              <div style="MARGIN: 0pt" align="right">44.2</div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="33">
              <div style="MARGIN: 0pt" align="right">37.6</div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="33">
              <div style="MARGIN: 0pt" align="right">15.0</div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="37">
              <div style="MARGIN: 0pt" align="right">13.5</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="379">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Amendments</div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="33">
              <div style="MARGIN: 0pt" align="right">3.5</div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="33">
              <div style="MARGIN: 0pt" align="right">5.6</div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="33">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="37">
              <div style="MARGIN: 0pt" align="right">(1.0</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="379">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Actuarial
                (gain) loss</div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="33">
              <div style="MARGIN: 0pt" align="right">(30.5</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="33">
              <div style="MARGIN: 0pt" align="right">96.0</div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="33">
              <div style="MARGIN: 0pt" align="right">(16.3</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="37">
              <div style="MARGIN: 0pt" align="right">22.4</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="379">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Benefits
                paid</div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="33">
              <div style="MARGIN: 0pt" align="right">(24.9</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="33">
              <div style="MARGIN: 0pt" align="right">(21.6</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="33">
              <div style="MARGIN: 0pt" align="right">(9.1</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="37">
              <div style="MARGIN: 0pt" align="right">(7.8</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="379">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Curtailment
                (gain) loss</div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="33">
              <div style="MARGIN: 0pt" align="right">(4.6</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="33">
              <div style="MARGIN: 0pt" align="right">(1.7</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="33">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="37">
              <div style="MARGIN: 0pt" align="right">0.1</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="379">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Special
                termination benefits</div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="33">
              <div style="MARGIN: 0pt" align="right">1.7</div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="33">
              <div style="MARGIN: 0pt" align="right">0.1</div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="33">
              <div style="MARGIN: 0pt" align="right">0.4</div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="37">
              <div style="MARGIN: 0pt" align="right">0.3</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="379">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Settlements</div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="33">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="33">
              <div style="MARGIN: 0pt" align="right">(1.5</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="33">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="37">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="379">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Acquisitions,
                new plans and other</div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="33">
              <div style="MARGIN: 0pt" align="right">22.5</div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="33">
              <div style="MARGIN: 0pt" align="right">0.5</div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="33">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="37">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="379">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Translation
                adjustment</div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="33" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">10.4</div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="33" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">1.5</div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="33" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(0.3</div>
            </td>
            <td valign="bottom" width="18" style="border-bottom: #ccffcc 0.5pt solid;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="37" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">4.2</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="379">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Benefit
                obligation at end of year</div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="33" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">860.9</div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="33" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">788.3</div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="33" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">267.9</div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="37" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">265.5</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>

      </table>
    </div>
    <div style="MARGIN: 5.35pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-35</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
</div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 6.65pt"><br><br><br></div>
    <div>&#160;</div>
    <div style="MARGIN: 0pt" align="center"><strong>LEAR CORPORATION AND
      SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 6.65pt"><strong>(10) Pension and
      Other Postretirement Benefit Plans &#8211; (continued)</strong></div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="286">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="26">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="26">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="26">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="26">
            </td>
            <td width="3">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="382">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td colspan="11" valign="bottom" width="220" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>December&#160;31,</strong></div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="382">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td colspan="5" valign="bottom" width="101" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Pension</strong></div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td colspan="5" valign="bottom" width="101" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Other
                Postretirement</strong></div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="382">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td colspan="2" valign="bottom" width="42">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2006</strong></div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td colspan="2" valign="bottom" width="42">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2005</strong></div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td colspan="2" valign="bottom" width="42">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2006</strong></div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td colspan="2" valign="bottom" width="42" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2005</strong></div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="382">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="35" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="35" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="35" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">&#160;</td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="382">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Change
                in plan assets:</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">&#160;</td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="382">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Fair
                value of plan assets at beginning of
                year&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">474.2</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">394.5</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="382">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Actual
                return on plan assets</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">42.7</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">45.6</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="382">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Employer
                contributions</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">69.5</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">48.7</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">9.1</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">7.8</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="382">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Benefits
                paid</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">(24.9</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">(21.6</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">(9.1</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">(7.8</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt" align="right">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="382">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Settlements</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">(1.5</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="382">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Acquisitions,
                new plans and other</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">11.5</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">0.2</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="382">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Translation
                adjustment</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="35" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">0.6</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="35" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">8.3</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="35" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="35" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="382">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Fair
                value of plan assets at end of year</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="35" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">573.6</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="35" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">474.2</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="35" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="35" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="382">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Funded
                status</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">(287.3</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">(314.1</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">(267.9</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">(265.5</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt" align="right">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="382">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Contributions
                between September&#160;30 and December&#160;31</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="35" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">11.9</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="35" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">15.8</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="35" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">2.1</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="35" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">1.8</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="382">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">(275.4</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">(298.3</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">(265.8</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">(263.7</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt" align="right">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="382">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Unrecognized
                net actuarial loss</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">182.9</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">111.3</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="382">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Unrecognized
                net transition (asset) obligation</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">(0.2</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">8.9</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="382">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Unrecognized
                prior service cost (credit)</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="35" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="35" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">50.5</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="35" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="35" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(37.1</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt" align="right">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="382">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Net
                amount recognized</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="35" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">(275.4</div>
            </td>
            <td valign="bottom" width="17" style="border-bottom: #ccffcc 3pt double;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="35" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">(65.1</div>
            </td>
            <td valign="bottom" width="17" style="border-bottom: #ccffcc 3pt double;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="35" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">(265.8</div>
            </td>
            <td valign="bottom" width="17" style="border-bottom: #ccffcc 3pt double;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="35" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">(180.6</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: #ccffcc 3pt double;">
              <div style="MARGIN: 0pt" align="right">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="382">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Amounts
                recognized in the consolidated balance sheets:</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">&#160;</td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="382">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Accrued
                liabilities</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">(4.9</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">(19.8</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">(10.0</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">(7.6</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt" align="right">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="382">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Other
                long-term liabilities</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">(270.5</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">(208.8</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">(255.8</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">(173.0</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt" align="right">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="382">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Other
                long-term assets (intangible asset)</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">48.5</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="382">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Accumulated
                other comprehensive loss</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="35" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="35" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">115.0</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="35" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="35" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="382">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Net
                amount recognized</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="35" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">(275.4</div>
            </td>
            <td valign="bottom" width="17" style="border-bottom: #ccffcc 3pt double;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="35" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">(65.1</div>
            </td>
            <td valign="bottom" width="17" style="border-bottom: #ccffcc 3pt double;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="35" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">(265.8</div>
            </td>
            <td valign="bottom" width="17" style="border-bottom: #ccffcc 3pt double;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="35" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">(180.6</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: #ccffcc 3pt double;">
              <div style="MARGIN: 0pt" align="right">)</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">As of
      December&#160;31, 2006 and 2005, the accumulated benefit obligation for all of
      the Company&#8217;s pension plans was $766.2&#160;million and $697.2&#160;million,
      respectively. As of December&#160;31, 2006, the majority of the Company&#8217;s
      pension plans had accumulated benefit obligations in excess of plan assets.
      As
      of December&#160;31, 2005, all of the Company&#8217;s pension plans had accumulated
      benefit obligations in excess of plan assets. The projected benefit obligation,
      the accumulated benefit obligation and the fair value of plan assets of pension
      plans with accumulated benefit obligations in excess of plan assets were
      $860.4&#160;million, $765.9&#160;million and $573.3&#160;million, respectively,
      as of December&#160;31, 2006, and $788.3&#160;million, $697.2&#160;million and
      $474.2&#160;million, respectively, as of December&#160;31, 2005. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-36</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
</div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt" align="center"><strong>LEAR CORPORATION AND
      SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 6.65pt"><strong>(10) Pension and
      Other Postretirement Benefit Plans &#8211; (continued)</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>New Accounting
      Pronouncement</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 6.65pt; TEXT-INDENT: 18pt">The
      Financial Accounting Standards Board (&#8220;FASB&#8221;) issued SFAS No. 158, &#8220;Employers&#8217;
Accounting for Defined Benefit Pension and Other Postretirement Plans &#8212; an
      amendment of FASB Statements No. 87, 88, 106, and 132(R).&#8221; This statement
      requires recognition of the funded status of a company&#8217;s defined benefit pension
      and postretirement benefit plans as an asset or liability on the balance sheet.
      Previously, under the provisions of SFAS No. 87, &#8220;Employers&#8217; Accounting for
      Pensions,&#8221; and SFAS No. 106, &#8220;Employers&#8217; Accounting for Postretirement Benefits
      Other Than Pensions,&#8221; the asset or liability recorded on the balance sheet
      reflected the funded status of the plan, net of certain unrecognized items
      that
      qualified for delayed income statement recognition. Under SFAS <br>No. 158,
      these previously unrecognized items are to be recorded in accumulated other
      comprehensive loss when the recognition provisions are adopted. The Company
      adopted the recognition provisions as of December&#160;31, 2006, and the funded
      status of its defined benefit plans is reflected in its consolidated balance
      sheet as of December&#160;31, 2006. In accordance with the transition provisions
      of SFAS No. 158, prior periods have not been restated. The incremental effect
      of
      applying the recognition provisions of SFAS No. 158 on the Company&#8217;s
      consolidated balance sheet as of December&#160;31, 2006, is shown below (in
      millions): </div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="284">
            </td>
            <td width="12">
            </td>
            <td width="7">
            </td>
            <td width="39">
            </td>
            <td width="12">
            </td>
            <td width="7">
            </td>
            <td width="36">
            </td>
            <td width="15">
            </td>
            <td width="7">
            </td>
            <td width="39">
            </td>
            <td width="3">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="379">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="63" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Before<br>Adoption
                of<br>SFAS No.
                158</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="58" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Adjustments</strong></div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td colspan="2" valign="bottom" width="63" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>After<br>Adoption
                of<br>SFAS No.
                158</strong></div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="379">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="52">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="48">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="52">&#160;</td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="379">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Intangible
                assets (other long-term
                assets)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="10">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">45.7</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="9">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="48">
              <div style="MARGIN: 0pt" align="right">(45.7</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)&#160;&#160;&#160;&#160;&#160; </div>
            </td>
            <td valign="bottom" width="10">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="379">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Liability
                for defined benefit plan obligations (current and<br>long-term
                liabilities)</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">(420.3</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="48">
              <div style="MARGIN: 0pt" align="right">(120.9</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">(541.2</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="379">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Accumulated
                other comprehensive loss &#8212; (stockholders&#8217; equity)</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">97.6</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="48">
              <div style="MARGIN: 0pt" align="right">166.6</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">264.2</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>

      </table>
    </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">See Note
      16, &#8220;Accounting Pronouncements,&#8221; for a discussion of other provisions of SFAS
      No. 158 that have not yet been adopted by the Company. </div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>Accumulated Other
      Comprehensive Loss </i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 6.65pt; TEXT-INDENT: 18pt">Amounts
      recorded in accumulated other comprehensive loss not yet recognized in net
      periodic benefit cost as of December&#160;31, 2006, are shown below: </div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="360">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="22">
            </td>
            <td width="12">
            </td>
            <td width="9">
            </td>
            <td width="41">
            </td>
            <td width="3">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="481">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="36" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Pension</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="68" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Other<br>Postretirement</strong></div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="481">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="30">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="13">&#160;</td>
            <td valign="bottom" width="54">&#160;</td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="481">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Net
                actuarial
                loss&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="30">
              <div style="MARGIN: 0pt" align="right">150.1</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="13">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="54">
              <div style="MARGIN: 0pt" align="right">91.8</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="481">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Net
                transition (asset) obligation</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="30">
              <div style="MARGIN: 0pt" align="right">(0.1</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="13">&#160;</td>
            <td valign="bottom" width="54">
              <div style="MARGIN: 0pt" align="right">7.8</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="481">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Prior
                service cost (credit)</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="30" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">47.9</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="13" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="54" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(33.3</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: #ccffcc 0.5pt solid;">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="481">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="30" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">197.9</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="13" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="54" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">66.3</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>

      </table>
    </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 6.65pt; TEXT-INDENT: 18pt">Amounts
      recorded in accumulated other comprehensive loss that are expected to be
      recognized as components of net periodic benefit cost in the year ended
      December&#160;31, 2007, are shown below (in millions): </div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="361">
            </td>
            <td width="12">
            </td>
            <td width="6">
            </td>
            <td width="20">
            </td>
            <td width="12">
            </td>
            <td width="12">
            </td>
            <td width="38">
            </td>
            <td width="3">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="482">
              <div style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align="center">&#160;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="35" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Pension</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="68" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Other<br>Postretirement</strong></div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="482">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="27">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="51">&#160;</td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="482">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Amortization
                of actuarial
                loss&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="27">
              <div style="MARGIN: 0pt" align="right">3.1</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">4.5</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="482">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Amortization
                of net transition (asset) obligation</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="27">
              <div style="MARGIN: 0pt" align="right">(0.1</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">1.0</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="482">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Amortization
                of prior service cost (credit)</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="27" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">4.7</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="16" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="51" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(3.5</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: #ccffcc 0.5pt solid;">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="482">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="27" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">7.7</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="16" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="51" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">2.0</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>

      </table>
    </div>
    <div style="MARGIN: 8pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-37</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
</div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 6.65pt"><br><br><br></div>
    <div>&#160;</div>
    <div style="MARGIN: 0pt" align="center"><strong>LEAR CORPORATION AND
      SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 6.65pt"><strong>(10) Pension and
      Other Postretirement Benefit Plans &#8211; (continued)</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>Net Periodic
      Benefit Cost </i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 6.65pt; TEXT-INDENT: 18pt">The
      components of the Company&#8217;s net periodic benefit cost are shown below (in
      millions): </div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="215">
            </td>
            <td width="14">
            </td>
            <td width="5">
            </td>
            <td width="24">
            </td>
            <td width="14">
            </td>
            <td width="5">
            </td>
            <td width="24">
            </td>
            <td width="14">
            </td>
            <td width="5">
            </td>
            <td width="24">
            </td>
            <td width="14">
            </td>
            <td width="5">
            </td>
            <td width="20">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="20">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="20">
            </td>
            <td width="3">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="286">&#160;</td>
            <td valign="bottom" width="18">&#160;</td>
            <td colspan="17" valign="bottom" width="313" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>For
                the Year Ended
                December&#160;31,</strong></div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="286">&#160;</td>
            <td valign="bottom" width="18">&#160;</td>
            <td colspan="8" valign="bottom" width="157">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Pension</strong></div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td colspan="8" valign="bottom" width="137" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Other
                Postretirement</strong></div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="286">&#160;</td>
            <td valign="bottom" width="18">&#160;</td>
            <td colspan="2" valign="bottom" width="39" style="border-top: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2006</strong></div>
            </td>
            <td valign="bottom" width="19" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td colspan="2" valign="bottom" width="39" style="border-top: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2005</strong></div>
            </td>
            <td valign="bottom" width="19" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td colspan="2" valign="bottom" width="39" style="border-top: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2004</strong></div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td colspan="2" valign="bottom" width="34">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2006</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="34">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2005</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="34" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2004</strong></div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="286">&#160;</td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="6" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="32" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="7" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="32" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="7" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="32" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="7" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="27" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="27" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="27">&#160;</td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="286">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Service
                cost</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="32">
              <div style="MARGIN: 0pt" align="right">50.3</div>
            </td>
            <td valign="bottom" width="19">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="32">
              <div style="MARGIN: 0pt" align="right">41.0</div>
            </td>
            <td valign="bottom" width="19">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="32">
              <div style="MARGIN: 0pt" align="right">36.7</div>
            </td>
            <td valign="bottom" width="19">
              <div style="MARGIN: 0pt" align="justify">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt" align="justify">$</div>
            </td>
            <td valign="bottom" width="27">
              <div style="MARGIN: 0pt" align="right">12.7</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="27">
              <div style="MARGIN: 0pt" align="right">11.7</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="27">
              <div style="MARGIN: 0pt" align="right">13.1</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">&#160;&#160;</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="286">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Interest
                cost</div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="32">
              <div style="MARGIN: 0pt" align="right">44.2</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="32">
              <div style="MARGIN: 0pt" align="right">37.6</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="32">
              <div style="MARGIN: 0pt" align="right">32.2</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="27">
              <div style="MARGIN: 0pt" align="right">15.0</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="27">
              <div style="MARGIN: 0pt" align="right">13.5</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="27">
              <div style="MARGIN: 0pt" align="right">12.3</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">&#160;&#160;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="286">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Expected
                return on plan assets</div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="32">
              <div style="MARGIN: 0pt" align="right">(39.4</div>
            </td>
            <td valign="bottom" width="19">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="32">
              <div style="MARGIN: 0pt" align="right">(30.2</div>
            </td>
            <td valign="bottom" width="19">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="32">
              <div style="MARGIN: 0pt" align="right">(24.3</div>
            </td>
            <td valign="bottom" width="19">
              <div style="MARGIN: 0pt" align="justify">)</div>
            </td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="27">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="27">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="27">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">&#160;&#160;</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="286">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Amortization
                of actuarial loss</div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="32">
              <div style="MARGIN: 0pt" align="right">7.1</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="32">
              <div style="MARGIN: 0pt" align="right">3.0</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="32">
              <div style="MARGIN: 0pt" align="right">2.8</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="27">
              <div style="MARGIN: 0pt" align="right">5.8</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="27">
              <div style="MARGIN: 0pt" align="right">3.6</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="27">
              <div style="MARGIN: 0pt" align="right">3.9</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">&#160;&#160;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="286">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Amortization
                of transition (asset) obligation</div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="32">
              <div style="MARGIN: 0pt" align="right">(0.1</div>
            </td>
            <td valign="bottom" width="19">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="32">
              <div style="MARGIN: 0pt" align="right">(0.2</div>
            </td>
            <td valign="bottom" width="19">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="32">
              <div style="MARGIN: 0pt" align="right">(0.3</div>
            </td>
            <td valign="bottom" width="19">
              <div style="MARGIN: 0pt" align="justify">)</div>
            </td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="27">
              <div style="MARGIN: 0pt" align="right">1.0</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="27">
              <div style="MARGIN: 0pt" align="right">1.1</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="27">
              <div style="MARGIN: 0pt" align="right">1.2</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">&#160;&#160;</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="286">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Amortization
                of prior service cost (credit)</div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="32">
              <div style="MARGIN: 0pt" align="right">5.4</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="32">
              <div style="MARGIN: 0pt" align="right">5.4</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="32">
              <div style="MARGIN: 0pt" align="right">4.3</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="27">
              <div style="MARGIN: 0pt" align="right">(3.7</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="27">
              <div style="MARGIN: 0pt" align="right">(3.1</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="27">
              <div style="MARGIN: 0pt" align="right">(2.8</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">) </div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="286">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Special
                termination benefits</div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="32">
              <div style="MARGIN: 0pt" align="right">1.7</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="32">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="32">
              <div style="MARGIN: 0pt" align="right">0.1</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="27">
              <div style="MARGIN: 0pt" align="right">0.4</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="27">
              <div style="MARGIN: 0pt" align="right">0.3</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="27">
              <div style="MARGIN: 0pt" align="right">0.2</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">&#160;&#160;</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="286">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Settlement
                loss</div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="32">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="32">
              <div style="MARGIN: 0pt" align="right">1.0</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="32">
              <div style="MARGIN: 0pt" align="right">0.5</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="27">
              <div style="MARGIN: 0pt" align="right"><strong>&#8212;</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="27">
              <div style="MARGIN: 0pt" align="right"><strong>&#8212;</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="27">
              <div style="MARGIN: 0pt" align="right"><strong>&#8212;</strong></div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">&#160;&#160;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="286">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Curtailment
                (gain) loss</div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="32" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">0.9</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="32" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">0.5</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="32" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">1.9</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="27" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="27" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">1.4</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="27" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(7.7</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: #ccffcc 0.5pt solid;">
              <div style="MARGIN: 0pt">) </div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="286">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Net
                periodic benefit cost</div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="32" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">70.1</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="32" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">58.1</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="32" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">53.9</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="justify">$</div>
            </td>
            <td valign="bottom" width="27" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">31.2</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="27" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">28.5</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="27" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">20.2</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>

      </table>
    </div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>Assumptions</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 6.65pt; TEXT-INDENT: 18pt">The
      weighted-average actuarial assumptions used in determining the benefit
      obligation are shown below: </div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="308">
            </td>
            <td width="13">
            </td>
            <td width="18">
            </td>
            <td width="21">
            </td>
            <td width="18">
            </td>
            <td width="21">
            </td>
            <td width="18">
            </td>
            <td width="21">
            </td>
            <td width="18">
            </td>
            <td width="8">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="411">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td colspan="7" valign="bottom" width="184" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>December&#160;31,</strong></div>
            </td>
            <td valign="bottom" width="11">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="411">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td colspan="3" valign="bottom" width="77">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Pension</strong></div>
            </td>
            <td valign="bottom" width="28">&#160;</td>
            <td colspan="3" valign="bottom" width="77" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Other<br>Postretirement</strong></div>
            </td>
            <td valign="bottom" width="11">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="411">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="24" style="border-top: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2006</strong></div>
            </td>
            <td valign="bottom" width="28" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="24" style="border-top: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2005</strong></div>
            </td>
            <td valign="bottom" width="28">&#160;</td>
            <td valign="bottom" width="24">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2006</strong></div>
            </td>
            <td valign="bottom" width="28">&#160;</td>
            <td valign="bottom" width="24" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2005</strong></div>
            </td>
            <td valign="bottom" width="11">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="411">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="24" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="28">&#160;</td>
            <td valign="bottom" width="24" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="28">&#160;</td>
            <td valign="bottom" width="24" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="28">&#160;</td>
            <td valign="bottom" width="24">&#160;</td>
            <td valign="bottom" width="11">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="411">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Discount
                rate:</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="24">&#160;</td>
            <td valign="bottom" width="28">&#160;</td>
            <td valign="bottom" width="24">&#160;</td>
            <td valign="bottom" width="28">&#160;</td>
            <td valign="bottom" width="24">&#160;</td>
            <td valign="bottom" width="28">&#160;</td>
            <td valign="bottom" width="24">
              <div style="MARGIN: 0pt" align="right">&#160;&#160;</div>
            </td>
            <td valign="bottom" width="11">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="411">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Domestic
                plans&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="24">
              <div style="MARGIN: 0pt" align="right">6.00</div>
            </td>
            <td valign="bottom" width="28">
              <div style="MARGIN: 0pt">%&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="24">
              <div style="MARGIN: 0pt" align="right">5.75</div>
            </td>
            <td valign="bottom" width="28">
              <div style="MARGIN: 0pt">%&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="24">
              <div style="MARGIN: 0pt">5.90</div>
            </td>
            <td valign="bottom" width="28">
              <div style="MARGIN: 0pt">%&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="24">
              <div style="MARGIN: 0pt" align="right">5.70 </div>
            </td>
            <td valign="bottom" width="11">
              <div style="MARGIN: 0pt">%</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="411">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Foreign
                plans</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="24">
              <div style="MARGIN: 0pt" align="right">5.00</div>
            </td>
            <td valign="bottom" width="28">
              <div style="MARGIN: 0pt">%</div>
            </td>
            <td valign="bottom" width="24">
              <div style="MARGIN: 0pt" align="right">5.00</div>
            </td>
            <td valign="bottom" width="28">
              <div style="MARGIN: 0pt">%</div>
            </td>
            <td valign="bottom" width="24">
              <div style="MARGIN: 0pt">5.30</div>
            </td>
            <td valign="bottom" width="28">
              <div style="MARGIN: 0pt">%</div>
            </td>
            <td valign="bottom" width="24">
              <div style="MARGIN: 0pt" align="right">5.30 </div>
            </td>
            <td valign="bottom" width="11">
              <div style="MARGIN: 0pt">%</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="411">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Rate
                of compensation increase:</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="24">&#160;</td>
            <td valign="bottom" width="28">&#160;</td>
            <td valign="bottom" width="24">&#160;</td>
            <td valign="bottom" width="28">&#160;</td>
            <td valign="bottom" width="24">&#160;</td>
            <td valign="bottom" width="28">&#160;</td>
            <td valign="bottom" width="24">
              <div style="MARGIN: 0pt" align="right">&#160;&#160;</div>
            </td>
            <td valign="bottom" width="11">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="411">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Domestic
                plans</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="24">
              <div style="MARGIN: 0pt" align="right">3.75</div>
            </td>
            <td valign="bottom" width="28">
              <div style="MARGIN: 0pt">%</div>
            </td>
            <td valign="bottom" width="24">
              <div style="MARGIN: 0pt" align="right">3.75</div>
            </td>
            <td valign="bottom" width="28">
              <div style="MARGIN: 0pt">%</div>
            </td>
            <td valign="bottom" width="24">
              <div style="MARGIN: 0pt">N/A</div>
            </td>
            <td valign="bottom" width="28">&#160;</td>
            <td valign="bottom" width="24">
              <div style="MARGIN: 0pt" align="right">N/A </div>
            </td>
            <td valign="bottom" width="11">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="411">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Foreign
                plans</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="24">
              <div style="MARGIN: 0pt" align="right">4.00</div>
            </td>
            <td valign="bottom" width="28">
              <div style="MARGIN: 0pt">%</div>
            </td>
            <td valign="bottom" width="24">
              <div style="MARGIN: 0pt" align="right">3.25</div>
            </td>
            <td valign="bottom" width="28">
              <div style="MARGIN: 0pt">%</div>
            </td>
            <td valign="bottom" width="24">
              <div style="MARGIN: 0pt">N/A</div>
            </td>
            <td valign="bottom" width="28">&#160;</td>
            <td valign="bottom" width="24">
              <div style="MARGIN: 0pt" align="right">N/A </div>
            </td>
            <td valign="bottom" width="11">&#160;</td>
          </tr>

      </table>
    </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 6.65pt; TEXT-INDENT: 18pt">The
      weighted-average actuarial assumptions used in determining net periodic benefit
      cost are shown below: </div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="174">
            </td>
            <td width="15">
            </td>
            <td width="22">
            </td>
            <td width="26">
            </td>
            <td width="22">
            </td>
            <td width="26">
            </td>
            <td width="22">
            </td>
            <td width="26">
            </td>
            <td width="22">
            </td>
            <td width="26">
            </td>
            <td width="22">
            </td>
            <td width="26">
            </td>
            <td width="22">
            </td>
            <td width="9">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="232">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td colspan="11" valign="bottom" width="357" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>For
                the Year Ended
                December&#160;31,</strong></div>
            </td>
            <td valign="bottom" width="13">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="232">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td colspan="5" valign="bottom" width="161">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Pension</strong></div>
            </td>
            <td valign="bottom" width="35">&#160;</td>
            <td colspan="5" valign="bottom" width="160" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Other
                Postretirement</strong></div>
            </td>
            <td valign="bottom" width="13">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="232">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="29" style="border-top: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2006</strong></div>
            </td>
            <td valign="bottom" width="35" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="29" style="border-top: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2005</strong></div>
            </td>
            <td valign="bottom" width="35" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="30" style="border-top: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2004</strong></div>
            </td>
            <td valign="bottom" width="35">&#160;</td>
            <td valign="bottom" width="29">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2006</strong></div>
            </td>
            <td valign="bottom" width="35">&#160;</td>
            <td valign="bottom" width="29">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2005</strong></div>
            </td>
            <td valign="bottom" width="35">&#160;</td>
            <td valign="bottom" width="29" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2004</strong></div>
            </td>
            <td valign="bottom" width="13">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="232">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="29" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="35">&#160;</td>
            <td valign="bottom" width="29" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="35">&#160;</td>
            <td valign="bottom" width="30" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="35">&#160;</td>
            <td valign="bottom" width="29" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="35">&#160;</td>
            <td valign="bottom" width="29" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="35">&#160;</td>
            <td valign="bottom" width="29">&#160;</td>
            <td valign="bottom" width="13">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="232">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Discount
                rate:</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="29">&#160;</td>
            <td valign="bottom" width="35">&#160;</td>
            <td valign="bottom" width="29">&#160;</td>
            <td valign="bottom" width="35">&#160;</td>
            <td valign="bottom" width="30">&#160;</td>
            <td valign="bottom" width="35">&#160;</td>
            <td valign="bottom" width="29">&#160;</td>
            <td valign="bottom" width="35">&#160;</td>
            <td valign="bottom" width="29">&#160;</td>
            <td valign="bottom" width="35">&#160;</td>
            <td valign="bottom" width="29">&#160;</td>
            <td valign="bottom" width="13">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="232">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Domestic
                plans&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="29">
              <div style="MARGIN: 0pt" align="right">5.75</div>
            </td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt">%&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="29">
              <div style="MARGIN: 0pt" align="right">6.00</div>
            </td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt">%&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="30">
              <div style="MARGIN: 0pt" align="right">6.25</div>
            </td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt">%&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="29">
              <div style="MARGIN: 0pt" align="right">5.70</div>
            </td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt">%&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="29">
              <div style="MARGIN: 0pt" align="right">6.00</div>
            </td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt">%&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="29">
              <div style="MARGIN: 0pt" align="right">6.25</div>
            </td>
            <td valign="bottom" width="13">
              <div style="MARGIN: 0pt">%</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="232">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Foreign
                plans</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="29">
              <div style="MARGIN: 0pt" align="right">5.00</div>
            </td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt">%</div>
            </td>
            <td valign="bottom" width="29">
              <div style="MARGIN: 0pt" align="right">6.00</div>
            </td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt">%</div>
            </td>
            <td valign="bottom" width="30">
              <div style="MARGIN: 0pt" align="right">6.25</div>
            </td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt">%</div>
            </td>
            <td valign="bottom" width="29">
              <div style="MARGIN: 0pt" align="right">5.30</div>
            </td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt">%</div>
            </td>
            <td valign="bottom" width="29">
              <div style="MARGIN: 0pt" align="right">6.50</div>
            </td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt">%</div>
            </td>
            <td valign="bottom" width="29">
              <div style="MARGIN: 0pt" align="right">6.50</div>
            </td>
            <td valign="bottom" width="13">
              <div style="MARGIN: 0pt">%</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="232">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Expected
                return on plan assets:</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="29">&#160;</td>
            <td valign="bottom" width="35">&#160;</td>
            <td valign="bottom" width="29">&#160;</td>
            <td valign="bottom" width="35">&#160;</td>
            <td valign="bottom" width="30">&#160;</td>
            <td valign="bottom" width="35">&#160;</td>
            <td valign="bottom" width="29">&#160;</td>
            <td valign="bottom" width="35">&#160;</td>
            <td valign="bottom" width="29">&#160;</td>
            <td valign="bottom" width="35">&#160;</td>
            <td valign="bottom" width="29">&#160;</td>
            <td valign="bottom" width="13">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="232">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Domestic
                plans</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="29">
              <div style="MARGIN: 0pt" align="right">8.25</div>
            </td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt">%</div>
            </td>
            <td valign="bottom" width="29">
              <div style="MARGIN: 0pt" align="right">7.75</div>
            </td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt">%</div>
            </td>
            <td valign="bottom" width="30">
              <div style="MARGIN: 0pt" align="right">7.75</div>
            </td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt">%</div>
            </td>
            <td valign="bottom" width="29">
              <div style="MARGIN: 0pt" align="right">N/A</div>
            </td>
            <td valign="bottom" width="35">&#160;</td>
            <td valign="bottom" width="29">
              <div style="MARGIN: 0pt" align="right">N/A</div>
            </td>
            <td valign="bottom" width="35">&#160;</td>
            <td valign="bottom" width="29">
              <div style="MARGIN: 0pt" align="right">N/A</div>
            </td>
            <td valign="bottom" width="13">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="232">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Foreign
                plans</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="29">
              <div style="MARGIN: 0pt" align="right">6.90</div>
            </td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt">%</div>
            </td>
            <td valign="bottom" width="29">
              <div style="MARGIN: 0pt" align="right">7.00</div>
            </td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt">%</div>
            </td>
            <td valign="bottom" width="30">
              <div style="MARGIN: 0pt" align="right">7.00</div>
            </td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt">%</div>
            </td>
            <td valign="bottom" width="29">
              <div style="MARGIN: 0pt" align="right">N/A</div>
            </td>
            <td valign="bottom" width="35">&#160;</td>
            <td valign="bottom" width="29">
              <div style="MARGIN: 0pt" align="right">N/A</div>
            </td>
            <td valign="bottom" width="35">&#160;</td>
            <td valign="bottom" width="29">
              <div style="MARGIN: 0pt" align="right">N/A</div>
            </td>
            <td valign="bottom" width="13">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="232">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Rate
                of compensation increase:</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="29">&#160;</td>
            <td valign="bottom" width="35">&#160;</td>
            <td valign="bottom" width="29">&#160;</td>
            <td valign="bottom" width="35">&#160;</td>
            <td valign="bottom" width="30">&#160;</td>
            <td valign="bottom" width="35">&#160;</td>
            <td valign="bottom" width="29">&#160;</td>
            <td valign="bottom" width="35">&#160;</td>
            <td valign="bottom" width="29">&#160;</td>
            <td valign="bottom" width="35">&#160;</td>
            <td valign="bottom" width="29">&#160;</td>
            <td valign="bottom" width="13">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="232">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Domestic
                plans</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="29">
              <div style="MARGIN: 0pt" align="right">3.75</div>
            </td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt">%</div>
            </td>
            <td valign="bottom" width="29">
              <div style="MARGIN: 0pt" align="right">3.00</div>
            </td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt">%</div>
            </td>
            <td valign="bottom" width="30">
              <div style="MARGIN: 0pt" align="right">3.00</div>
            </td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt">%</div>
            </td>
            <td valign="bottom" width="29">
              <div style="MARGIN: 0pt" align="right">N/A</div>
            </td>
            <td valign="bottom" width="35">&#160;</td>
            <td valign="bottom" width="29">
              <div style="MARGIN: 0pt" align="right">N/A</div>
            </td>
            <td valign="bottom" width="35">&#160;</td>
            <td valign="bottom" width="29">
              <div style="MARGIN: 0pt" align="right">N/A</div>
            </td>
            <td valign="bottom" width="13">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="232">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Foreign
                plans</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="29">
              <div style="MARGIN: 0pt" align="right">3.90</div>
            </td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt">%</div>
            </td>
            <td valign="bottom" width="29">
              <div style="MARGIN: 0pt" align="right">3.25</div>
            </td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt">%</div>
            </td>
            <td valign="bottom" width="30">
              <div style="MARGIN: 0pt" align="right">3.25</div>
            </td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt">%</div>
            </td>
            <td valign="bottom" width="29">
              <div style="MARGIN: 0pt" align="right">N/A</div>
            </td>
            <td valign="bottom" width="35">&#160;</td>
            <td valign="bottom" width="29">
              <div style="MARGIN: 0pt" align="right">N/A</div>
            </td>
            <td valign="bottom" width="35">&#160;</td>
            <td valign="bottom" width="29">
              <div style="MARGIN: 0pt" align="right">N/A</div>
            </td>
            <td valign="bottom" width="13">&#160;</td>
          </tr>

      </table>
    </div>
    <div style="MARGIN: 5.35pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-38</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
</div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 6.65pt"><br><br><br></div>
    <div>&#160;</div>
    <div style="MARGIN: 0pt" align="center"><strong>LEAR CORPORATION AND
      SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 6.65pt"><strong>(10) Pension and
      Other Postretirement Benefit Plans &#8211; (continued)</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      expected return on plan assets is determined based on several factors, including
      adjusted historical returns, historical risk premiums for various asset classes
      and target asset allocations within the portfolio. Adjustments made to the
      historical returns are based on recent return experience in the equity and
      fixed
      income markets and the belief that deviations from historical returns are likely
      over the relevant investment horizon. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">For
      measurement purposes, domestic healthcare costs were assumed to increase 9%
      in
      2007, grading down over time to 5% in seven years. Foreign healthcare costs
      were
      assumed to increase 7% in 2007, grading down over time to 4% in eleven years
      on
      a weighted average basis. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 11pt">Assumed
      healthcare cost trend rates have a significant effect on the amounts reported
      for the postretirement benefit plans. A 1% increase in the assumed rate of
      healthcare cost increases each year would increase the postretirement benefit
      obligation as of December&#160;31, 2006, by $59.1&#160;million and increase the
      postretirement net periodic benefit cost by $7.0&#160;million for the year then
      ended. A 1% decrease in the assumed rate of healthcare cost increases each
      year
      would decrease the postretirement benefit obligation as of December&#160;31,
      2006, by $46.2&#160;million and decrease the postretirement net periodic benefit
      cost by $5.4&#160;million for the year then ended. </div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>Plan
      Assets</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 6.65pt; TEXT-INDENT: 18pt">The
      Company&#8217;s pension plan asset allocations by asset category are shown below
      (based on a September&#160;30 measurement date). Pension plan asset allocations
      for the foreign plans relate to the Company&#8217;s Canadian pension plans. </div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="390">
            </td>
            <td width="13">
            </td>
            <td width="16">
            </td>
            <td width="21">
            </td>
            <td width="16">
            </td>
            <td width="8">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="520">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td colspan="3" valign="bottom" width="74" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>December&#160;31,</strong></div>
            </td>
            <td valign="bottom" width="11">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="520">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="22">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2006</strong></div>
            </td>
            <td valign="bottom" width="29">&#160;</td>
            <td valign="bottom" width="22" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2005</strong></div>
            </td>
            <td valign="bottom" width="11">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="520">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="22" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="29">&#160;</td>
            <td valign="bottom" width="22">&#160;</td>
            <td valign="bottom" width="11">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="520">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Equity
                securities:</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="22">&#160;</td>
            <td valign="bottom" width="29">&#160;</td>
            <td valign="bottom" width="22">&#160;</td>
            <td valign="bottom" width="11">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="520">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Domestic
                plans&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="22">
              <div style="MARGIN: 0pt" align="right">69</div>
            </td>
            <td valign="bottom" width="29">
              <div style="MARGIN: 0pt">%&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="22">
              <div style="MARGIN: 0pt" align="right">71</div>
            </td>
            <td valign="bottom" width="11">
              <div style="MARGIN: 0pt">%</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="520">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Foreign
                plans</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="22">
              <div style="MARGIN: 0pt" align="right">58</div>
            </td>
            <td valign="bottom" width="29">
              <div style="MARGIN: 0pt">%</div>
            </td>
            <td valign="bottom" width="22">
              <div style="MARGIN: 0pt" align="right">59</div>
            </td>
            <td valign="bottom" width="11">
              <div style="MARGIN: 0pt">%</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="520">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Debt
                securities:</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="22">&#160;</td>
            <td valign="bottom" width="29">&#160;</td>
            <td valign="bottom" width="22">&#160;</td>
            <td valign="bottom" width="11">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="520">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Domestic
                plans</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="22">
              <div style="MARGIN: 0pt" align="right">28</div>
            </td>
            <td valign="bottom" width="29">
              <div style="MARGIN: 0pt">%</div>
            </td>
            <td valign="bottom" width="22">
              <div style="MARGIN: 0pt" align="right">27</div>
            </td>
            <td valign="bottom" width="11">
              <div style="MARGIN: 0pt">%</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="520">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Foreign
                plans</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="22">
              <div style="MARGIN: 0pt" align="right">36</div>
            </td>
            <td valign="bottom" width="29">
              <div style="MARGIN: 0pt">%</div>
            </td>
            <td valign="bottom" width="22">
              <div style="MARGIN: 0pt" align="right">38</div>
            </td>
            <td valign="bottom" width="11">
              <div style="MARGIN: 0pt">%</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="520">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Cash
                and other:</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="22">&#160;</td>
            <td valign="bottom" width="29">&#160;</td>
            <td valign="bottom" width="22">&#160;</td>
            <td valign="bottom" width="11">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="520">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Domestic
                plans</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="22">
              <div style="MARGIN: 0pt" align="right">3</div>
            </td>
            <td valign="bottom" width="29">
              <div style="MARGIN: 0pt">%</div>
            </td>
            <td valign="bottom" width="22">
              <div style="MARGIN: 0pt" align="right">2</div>
            </td>
            <td valign="bottom" width="11">
              <div style="MARGIN: 0pt">%</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="520">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Foreign
                plans</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="22">
              <div style="MARGIN: 0pt" align="right">6</div>
            </td>
            <td valign="bottom" width="29">
              <div style="MARGIN: 0pt">%</div>
            </td>
            <td valign="bottom" width="22">
              <div style="MARGIN: 0pt" align="right">3</div>
            </td>
            <td valign="bottom" width="11">
              <div style="MARGIN: 0pt">%</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 11pt">The
      Company&#8217;s investment policies incorporate an asset allocation strategy that
      emphasizes the long-term growth of capital. The Company believes this strategy
      is consistent with the long-term nature of plan liabilities and ultimate cash
      needs of the plans. For the domestic portfolio, the Company targets an equity
      allocation of 60% &#8211; 80% of plan assets, a fixed income allocation of 15% &#8211; 40%
      and cash allocation of 0% &#8211; 15%. For the foreign portfolio, the Company targets
      an equity allocation of 50% &#8211; 70% of plan assets, a fixed income allocation of
      30% &#8211; 50% and a cash allocation of 0% &#8211; 10%. Differences in the target
      allocations of the domestic and foreign portfolios are reflective of differences
      in the underlying plan liabilities. Diversification within the investment
      portfolios is pursued by asset class and investment management style. The
      investment portfolios are reviewed on a quarterly basis to maintain the desired
      asset allocations, given the market performance of the asset classes and
      investment management styles. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 11pt">The
      Company utilizes investment management firms to manage these assets in
      accordance with the Company&#8217;s investment policies. Retained investment managers
      are provided investment guidelines that indicate prohibited assets, which
      include commodities contracts, futures contracts, options, venture capital,
      real
      estate and interest-only or principal-only strips. Derivative instruments are
      also prohibited without the specific approval of the Company. Investment
      managers are limited in the maximum size of individual security holdings and
      the
      maximum exposure to any one industry relative to the total portfolio. Fixed
      income managers are provided further investment guidelines that indicate minimum
      credit ratings for debt securities and limitations on weighted average maturity
      and portfolio duration. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 11pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-39</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
</div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt" align="center"><strong>LEAR CORPORATION AND
      SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 6.65pt"><strong>(10) Pension and
      Other Postretirement Benefit Plans &#8211; (continued)</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      Company evaluates investment manager performance against market indices which
      the Company believes are appropriate to the investment management style for
      which the investment manager has been retained. The Company&#8217;s investment
      policies incorporate an investment goal of aggregate portfolio returns which
      exceed the returns of the appropriate market indices by a reasonable spread
      over
      the relevant investment horizon. </div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>Contributions</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      Company expects to contribute approximately $60&#160;million to its domestic and
      foreign pension plan asset portfolios in 2007. Contributions to the pension
      plans are consistent with minimum funding requirements of the relevant
      governmental authorities. The Company may make contributions in excess of these
      minimums when the Company believes it is financially advantageous to do so
      and
      based on its other capital requirements. In addition, the Company&#8217;s future
      funding obligations may be affected by changes in applicable legal requirements.
      </div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>Benefit
      Payments</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 6.65pt; TEXT-INDENT: 18pt">As
      of
      December&#160;31, 2006, the Company&#8217;s estimate of expected benefit payments in
      each of the five succeeding years and in the aggregate for the five years
      thereafter are shown below (in millions): </div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="352">
            </td>
            <td width="13">
            </td>
            <td width="5">
            </td>
            <td width="25">
            </td>
            <td width="13">
            </td>
            <td width="12">
            </td>
            <td width="44">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="470">&#160;</td>
            <td valign="bottom" width="18">&#160;</td>
            <td colspan="2" valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Pension</strong></div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td colspan="2" valign="bottom" width="75" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Other<br>Postretirement</strong></div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="470">&#160;</td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="33">&#160;</td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="58">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="470">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">2007&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="33">
              <div style="MARGIN: 0pt" align="right">27.1</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="58">
              <div style="MARGIN: 0pt" align="right">10.0</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="470">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">2008</div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="33">
              <div style="MARGIN: 0pt" align="right">29.0</div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="58">
              <div style="MARGIN: 0pt" align="right">10.7</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="470">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">2009</div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="33">
              <div style="MARGIN: 0pt" align="right">31.1</div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="58">
              <div style="MARGIN: 0pt" align="right">11.5</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="470">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">2010</div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="33">
              <div style="MARGIN: 0pt" align="right">34.8</div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="58">
              <div style="MARGIN: 0pt" align="right">12.2</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="470">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">2011</div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="33">
              <div style="MARGIN: 0pt" align="right">37.6</div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="58">
              <div style="MARGIN: 0pt" align="right">12.6</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="470">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Five
                years thereafter</div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="33">
              <div style="MARGIN: 0pt" align="right">241.9</div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="58">
              <div style="MARGIN: 0pt" align="right">73.5</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>Defined
      Contribution and Multi-employer Pension Plans</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      Company also sponsors defined contribution plans and participates in
      government-sponsored programs in certain foreign countries. Contributions are
      determined as a percentage of each covered employee&#8217;s salary. The Company also
      participates in multi-employer pension plans for certain of its hourly
      employees. Contributions are based on collective bargaining agreements. For
      the
      years ended December&#160;31, 2006, 2005 and 2004, the aggregate cost of the
      defined contribution and multi-employer pension plans was $22.7&#160;million,
      $25.8&#160;million and $25.1&#160;million, respectively. </div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>Subsequent
      Events</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">In 2006,
      the Company elected to freeze its U.S. salaried defined benefit pension plan
      effective December&#160;31, 2006. In conjunction with this, the Company
      established a new defined contribution retirement plan for its salaried
      employees effective January&#160;1, 2007. Contributions to this plan will be
      determined as a percentage of each covered employee&#8217;s salary and are expected to
      be in the range of $18&#160;million to $25&#160;million in 2007. Subsequent to
      the measurement date of September&#160;30, 2006, the Company incurred
      curtailment gains of approximately $36.5&#160;million and $14.7&#160;million
      with respect to pension and other postretirement benefit plans, respectively.
      The pension plan curtailment gain resulted from the suspension of the accrual
      of
      defined benefits related to the Company&#8217;s U.S. salaried defined benefit pension
      plan. The other postretirement benefit plan curtailment gain resulted from
      employee terminations associated with a facility closure in the fourth quarter
      of 2006. The Company uses a September&#160;30 measurement date for its U.S.
      pension and other postretirement benefit plans, and as these curtailments
      occurred after the measurement date, the related curtailment gains will be
      recognized by the Company in the first quarter of 2007. </div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-40</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
</div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt" align="center"><strong>LEAR CORPORATION AND
      SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>(11) Stock-Based
      Compensation</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      Company has three plans under which it has issued stock options: the 1994 Stock
      Option Plan, the 1996 Stock Option Plan and the Long-Term Stock Incentive Plan.
      Options issued to date under these plans generally vest three years following
      the grant date and expire ten years from the issuance date. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 6.65pt; TEXT-INDENT: 18pt">A
      summary of option transactions during each of the three years in the period
      ended December&#160;31, 2006, is shown below: </div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="318">
            </td>
            <td width="14">
            </td>
            <td width="48">
            </td>
            <td width="14">
            </td>
            <td width="73">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="424">&#160;</td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="64" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Stock
                Options</strong></div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="97" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Price
                Range</strong></div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="424">&#160;</td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="64">&#160;</td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="97">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="424">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Outstanding
                as of January&#160;1,
                2004&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="64">
              <div style="MARGIN: 0pt" align="right">4,002,625</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="97">
              <div style="MARGIN: 0pt" align="right">$15.50 &#8211; $55.33</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="424">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Expired
                or cancelled</div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="64">
              <div style="MARGIN: 0pt" align="right">(14,450</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="97">
              <div style="MARGIN: 0pt" align="right">$15.50 &#8211; $54.22</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="424">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Exercised</div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="64" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(693,495</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="97">
              <div style="MARGIN: 0pt" align="right">$15.50 &#8211; $54.22</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="424">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Outstanding
                as of December&#160;31, 2004</div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="64">
              <div style="MARGIN: 0pt" align="right">3,294,680</div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="97">
              <div style="MARGIN: 0pt" align="right">$22.12 &#8211; $55.33</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="424">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Expired
                or cancelled</div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="64">
              <div style="MARGIN: 0pt" align="right">(176,800</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="97">
              <div style="MARGIN: 0pt" align="right">$22.12 &#8211; $54.22</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="424">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Exercised</div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="64" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(134,475</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="97">
              <div style="MARGIN: 0pt" align="right">$22.12 &#8211; $54.22</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="424">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Outstanding
                as of December&#160;31, 2005</div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="64">
              <div style="MARGIN: 0pt" align="right">2,983,405</div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="97">
              <div style="MARGIN: 0pt" align="right">$22.12 &#8211; $55.33</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="424">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Expired
                or cancelled</div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="64">
              <div style="MARGIN: 0pt" align="right">(186,100</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="97">
              <div style="MARGIN: 0pt" align="right">$22.12 &#8211; $54.22</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="424">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Exercised</div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="64" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(7,000</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="97">
              <div style="MARGIN: 0pt" align="right">$22.12</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="424">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Outstanding
                as of December&#160;31, 2006</div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="64" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">2,790,305</div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="97">
              <div style="MARGIN: 0pt" align="right">$22.12 &#8211;
$55.33</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 6.65pt; TEXT-INDENT: 18pt">A
      summary of options outstanding as of December&#160;31, 2006, is shown below:
</div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="178">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="55">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="55">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="55">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="55">
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="237">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Range
                of exercise
                prices&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="73">
              <div style="MARGIN: 0pt" align="right">22.12 &#8211; 27.25</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="73">
              <div style="MARGIN: 0pt" align="right">33.00 &#8211; 39.83</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="73">
              <div style="MARGIN: 0pt" align="right">41.83 &#8211; 42.32</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="73">
              <div style="MARGIN: 0pt" align="right">54.22 &#8211; 55.33 </div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="237">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Options
                outstanding and exercisable:</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="73">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="73">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="73">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="73">
              <div style="MARGIN: 0pt" align="right">&#160;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="237">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Number
                outstanding and exercisable</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="73">
              <div style="MARGIN: 0pt" align="right">215,475</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="73">
              <div style="MARGIN: 0pt" align="right">795,080</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="73">
              <div style="MARGIN: 0pt" align="right">1,389,300</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="73">
              <div style="MARGIN: 0pt" align="right">390,450 </div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="237">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Weighted
                average remaining contractual<br>life (years)</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="73">
              <div style="MARGIN: 0pt" align="right">3.16</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="73">
              <div style="MARGIN: 0pt" align="right">3.56</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="73">
              <div style="MARGIN: 0pt" align="right">5.42</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="73">
              <div style="MARGIN: 0pt" align="right">1.56 </div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="237">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Weighted
                average exercise price</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="73">
              <div style="MARGIN: 0pt" align="right">22.58</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="73">
              <div style="MARGIN: 0pt" align="right">36.98</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="73">
              <div style="MARGIN: 0pt" align="right">41.83</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="73">
              <div style="MARGIN: 0pt" align="right">54.27
</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">As of
      December&#160;31, 2005, 2,967,405 options were exercisable. During 2006, an
      additional 16,000 options became exercisable. As of December&#160;31, 2006, all
      outstanding options were exercisable. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      Long-Term Stock Incentive Plan also permits the grants of stock appreciation
      rights, restricted stock, restricted stock units, performance shares and
      performance units (collectively, &#8220;Incentive Units&#8221;) to officers and other key
      employees of the Company. As of December&#160;31, 2006, the Company had
      outstanding stock-settled stock appreciation rights covering 1,751,854 shares
      with a weighted average exercise price of $28.99 per right and outstanding
      restricted stock and performance shares convertible into a maximum of 2,134,480
      shares of common stock of the Company. Restricted stock and performance shares
      include 1,285,387 restricted stock units at no cost to the employee, 679,184
      restricted stock units at a weighted average cost to the employee of $40.86
      per
      unit and 169,909 performance shares at no cost to the employee. As of
      December&#160;31, 2006, the Company also had outstanding 463,748 cash-settled
      stock appreciation rights with a weighted average exercise price of $28.74
      per
      right. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Stock
      appreciation rights granted prior to 2006 vest on a graded basis over one to
      three years following the grant date and expire seven years from the grant
      date.
      Stock appreciation rights granted in 2006 vest three years following the grant
      date and expire seven years from the grant date. Restricted stock units granted
      prior to 2006 vest on a graded basis over two to five years following the grant
      date. Restricted stock units granted in 2006 vest on a graded basis over two
      to
      four years following the grant date. Performance shares vest three years
      following the grant date. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-41</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
</div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt" align="center"><strong>LEAR CORPORATION AND
      SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>(11) Stock-Based
      Compensation &#8211; (continued)</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 6.65pt; TEXT-INDENT: 18pt">A
      summary of Incentive Unit transactions during each of the three years in the
      period ended December&#160;31, 2006, is shown below: </div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="292">
            </td>
            <td width="12">
            </td>
            <td width="44">
            </td>
            <td width="12">
            </td>
            <td width="44">
            </td>
            <td width="13">
            </td>
            <td width="44">
            </td>
            <td width="3">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="390">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="59" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Stock<br>Appreciation<br>Rights(1)</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="58" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Restricted<br>Stock<br>Units</strong></div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="59" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Performance<br>Shares(2)</strong></div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="390">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="59">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="58">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="59">&#160;</td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="390">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Outstanding
                as of January&#160;1,
                2004&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="59">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="58">
              <div style="MARGIN: 0pt" align="right">1,394,716</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="59">
              <div style="MARGIN: 0pt" align="right">256,158</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="390">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Granted</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="59">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="58">
              <div style="MARGIN: 0pt" align="right">954,637</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="59">
              <div style="MARGIN: 0pt" align="right">53,193</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="390">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Expired
                or cancelled</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="59">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="58">
              <div style="MARGIN: 0pt" align="right">(39,332</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="59">
              <div style="MARGIN: 0pt" align="right">(6,664</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="390">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Distributed</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="59" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="58" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(476,337</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="59" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(93,660</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="390">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Outstanding
                as of December&#160;31, 2004</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="59">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="58">
              <div style="MARGIN: 0pt" align="right">1,833,684</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="59">
              <div style="MARGIN: 0pt" align="right">209,027</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="390">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Granted</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="59">
              <div style="MARGIN: 0pt" align="right">1,215,046</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="58">
              <div style="MARGIN: 0pt" align="right">605,811</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="59">
              <div style="MARGIN: 0pt" align="right">56,733</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="390">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Expired
                or cancelled</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="59">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="58">
              <div style="MARGIN: 0pt" align="right">(74,528</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="59">
              <div style="MARGIN: 0pt" align="right">(67,452</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="390">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Distributed</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="59" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="58" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(130,845</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="59" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(74,636</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="390">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Outstanding
                as of December&#160;31, 2005</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="59">
              <div style="MARGIN: 0pt" align="right">1,215,046</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="58">
              <div style="MARGIN: 0pt" align="right">2,234,122</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="59">
              <div style="MARGIN: 0pt" align="right">123,672</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="390">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Granted</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="59">
              <div style="MARGIN: 0pt" align="right">642,285</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="58">
              <div style="MARGIN: 0pt" align="right">406,086</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="59">
              <div style="MARGIN: 0pt" align="right">130,655</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="390">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Expired
                or cancelled</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="59">
              <div style="MARGIN: 0pt" align="right">(91,002</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="58">
              <div style="MARGIN: 0pt" align="right">(146,045</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="59">
              <div style="MARGIN: 0pt" align="right">(84,418</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="390">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Distributed
                or exercised</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="59" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(14,475</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="58" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(529,592</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="59" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="390">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Outstanding
                as of December&#160;31, 2006</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="59" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">1,751,854</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="58" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">1,964,571</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="59" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">169,909</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>

      </table>
    </div>
    <div style="FONT-SIZE: 11pt; MARGIN: 0pt; LINE-HEIGHT: 13pt">&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;</div>
    <div style="MARGIN-TOP: 0pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: -12pt; TEXT-INDENT: -18pt">(1)</div>
    <div style="MARGIN-TOP: 0pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 2.5pt">Does
      not
      include cash-settled stock appreciation rights. </div>
    <div style="MARGIN-TOP: 0pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: -12pt; TEXT-INDENT: -18pt">(2)</div>
    <div style="MARGIN-TOP: 0pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 2.5pt">Performance
      shares reflected as &#8220;granted&#8221; are notional shares granted at the beginning of a
      three-year performance period whose eventual payout is subject to satisfaction
      of performance criteria. Performance shares reflected as &#8220;distributed&#8221; are those
      that are paid out in shares of common stock upon satisfaction of the performance
      criteria at the end of the three-year performance period. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">As of
      December&#160;31, 2005, all outstanding stock appreciation rights were
      nonvested. During 2006, 375,331 stock appreciation rights vested and 360,856
      of
      these remain outstanding as of December&#160;31, 2006. All outstanding
      restricted stock units and performance shares are nonvested. Restricted stock
      units and performance shares are distributed when vested. As of
      December&#160;31, 2006, unrecognized compensation cost related to nonvested
      Incentive Units was $41.9&#160;million. This amount is expected to be recognized
      over the next 1.6 years on a weighted average basis. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The fair
      values of the stock-settled stock appreciation right grants, which have a
      seven-year term, were estimated as of the grant dates using the Black-Scholes
      option pricing model with the following weighted average assumptions: expected
      dividend yields of 0.00% in 2006 and 1.91% in 2005; expected life of 5 years
      in
      2006 and 41/2 years in 2005; risk-free interest rate of 4.58% in 2006 and 4.40%
      in 2005; and expected volatility of 40.00% in 2006 and 2005. The weighted
      average fair value of the stock-settled stock appreciation right grants were
      $13.21 per right in 2006 and $9.30 per right in 2005. </div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>(12) Commitments
      and
      Contingencies</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>Legal and Other
      Contingencies </i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">As of
      December&#160;31, 2006 and December&#160;31, 2005, the Company had recorded
      reserves for pending legal disputes, including commercial disputes and other
      matters, of $18.0&#160;million and $49.2&#160;million, respectively. Such
      reserves reflect amounts recognized in accordance with accounting principles
      generally accepted in the United States and typically exclude the cost of legal
      representation. Product warranty liabilities are recorded separately from legal
      liabilities, as described below. </div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-42</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
</div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt" align="center"><strong>LEAR CORPORATION AND
      SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>(12) Commitments
      and
      Contingencies &#8211; (continued)</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><i>Commercial
      Disputes</i></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      Company is involved from time to time in legal proceedings and claims,
      including, without limitation, commercial or contractual disputes with its
      suppliers, competitors and customers. These disputes vary in nature and are
      usually resolved by negotiations between the parties. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">On
      January&#160;29, 2002, Seton Company (&#8220;Seton&#8221;), one of the Company&#8217;s leather
      suppliers, filed a suit alleging that the Company had breached a purported
      agreement to purchase leather from Seton for seats for the life of the General
      Motors GMT 800 program. Seton filed the lawsuit in the U.S. District Court
      for
      the Eastern District of Michigan seeking compensatory and exemplary damages
      totaling approximately $96.5&#160;million, plus interest, on breach of contract
      and promissory estoppel claims. In May&#160;2005, this case proceeded to trial,
      and the jury returned a $30.0&#160;million verdict against the Company. On
      September&#160;27, 2005, the Court denied the Company&#8217;s post-trial motions
      challenging the judgment and granted Seton&#8217;s motion to award prejudgment
      interest in the amount of approximately $4.7&#160;million. On October&#160;4,
      2006, the Sixth Circuit Court of Appeals affirmed the judgment of the trial
      court. On October&#160;18, 2006, the Company filed a Petition for Rehearing with
      the court which was denied on November&#160;16, 2006. On December&#160;7, 2006,
      the Court of Appeals issued a mandate indicating that the order affirming the
      judgment was final. In December&#160;2006, the Company paid the principal and
      all remaining interest on the judgment. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">On
      January&#160;26, 2004, the Company filed a patent infringement lawsuit against
      Johnson Controls Inc. and Johnson Controls Interiors LLC (together, &#8220;JCI&#8221;) in
      the U.S. District Court for the Eastern District of Michigan alleging that
      JCI&#8217;s
      garage door opener products infringed certain of the Company&#8217;s radio frequency
      transmitter patents. JCI counterclaimed seeking a declaratory judgment that
      the
      subject patents are invalid and unenforceable, and that JCI is not infringing
      these patents. JCI also has filed motions for summary judgment asserting that
      its garage door opener products do not infringe the Company&#8217;s patents and that
      one of the Company&#8217;s patents is invalid and unenforceable. The Company is
      vigorously pursuing its claims against JCI. A trial date has not been scheduled.
      </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">After
      the
      Company filed its patent infringement action against JCI, affiliates of JCI
      sued
      one of the Company&#8217;s vendors and certain of the vendor&#8217;s employees in Ottawa
      County, Michigan Circuit Court on July&#160;8, 2004, alleging misappropriation
      of trade secrets and disclosure of confidential information. The suit alleges
      that the defendants misappropriated and shared with the Company trade secrets
      involving JCI&#8217;s universal garage door opener product. JCI seeks to enjoin the
      defendants from selling or attempting to sell a competing product, as well
      as
      compensatory damages and attorney fees. The Company is not a defendant in this
      lawsuit; however, the agreements between the Company and the defendants contain
      customary indemnification provisions. The Company does not believe that its
      garage door opener product benefited from any allegedly misappropriated trade
      secrets or technology. However, JCI has sought discovery of certain information
      which the Company believes is confidential and proprietary, and the Company
      has
      intervened in the case as a non-party for the limited purpose of protecting
      its
      rights with respect to JCI&#8217;s discovery efforts. The trial has been rescheduled
      to October&#160;2007. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">On
      June&#160;13, 2005, The Chamberlain Group (&#8220;Chamberlain&#8221;) filed a lawsuit
      against the Company and Ford Motor Company (&#8220;Ford&#8221;) in the Northern District of
      Illinois alleging patent infringement. Two counts were asserted against the
      Company and Ford based upon two Chamberlain rolling-code garage door opener
      system patents. Two additional counts were asserted against Ford only (not
      the
      Company) based upon different Chamberlain patents. The Chamberlain lawsuit
      was
      filed in connection with the marketing of the Company&#8217;s universal garage door
      opener system, which competes with a product offered by JCI. JCI obtained
      technology from Chamberlain to operate its product. In October&#160;2005, JCI
      joined the lawsuit as a plaintiff along with Chamberlain. In October&#160;2006,
      Ford was dismissed from the suit. JCI and Chamberlain have filed a motion for
      a
      preliminary injunction, and the Company is vigorously defending the claims
      asserted in this lawsuit. A trial date has not yet been scheduled. </div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-43</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
</div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt" align="center"><strong>LEAR CORPORATION AND
      SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>(12) Commitments
      and
      Contingencies &#8211; (continued)</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><i>Product Liability Matters
      </i></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">In the
      event that use of the Company&#8217;s products results in, or is alleged to result in,
      bodily injury and/or property damage or other losses, the Company may be subject
      to product liability lawsuits and other claims. In addition, the Company is
      a
      party to warranty-sharing and other agreements with its customers relating
      to
      its products. These customers may pursue claims against the Company for
      contribution of all or a portion of the amounts sought in connection with
      product liability and warranty claims. The Company can provide no assurances
      that it will not experience material claims in the future or that it will not
      incur significant costs to defend such claims. In addition, if any of the
      Company&#8217;s products are, or are alleged to be, defective, the Company may be
      required or requested by its customers to participate in a recall or other
      corrective action involving such products. Certain of the Company&#8217;s customers
      have asserted claims against the Company for costs related to recalls or other
      corrective actions involving its products. In certain instances, the allegedly
      defective products were supplied by<br>tier II suppliers against whom the
      Company has sought or will seek contribution. In this regard, in the first
      quarter of 2007, the Company received notice of a potential warranty claim
      concerning a component produced by a tier II supplier and incorporated into
      a
      product supplied by the Company. The alleged non-conformity is not
      safety-related. The Company is continuing to work with the customer and the
      tier
      II supplier to evaluate the matter and determine the appropriate corrective
      action, if any. The Company has also placed its tier II supplier on notice
      of
      the potential claim and of the Company&#8217;s intention to seek full contribution and
      reimbursement for any loss. The Company carries insurance for certain legal
      matters, including product liability claims, but such coverage may be limited.
      The Company does not maintain insurance for product warranty or recall matters.
      </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      Company records product warranty liabilities based on its individual customer
      agreements. Product warranty liabilities are recorded for known warranty issues
      when amounts related to such issues are probable and reasonably estimable.
      In
      certain product liability and warranty matters, the Company may seek recovery
      from its suppliers that supply materials or services included within the
      Company&#8217;s products that are associated with the related claims. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 6.65pt; TEXT-INDENT: 18pt">A
      summary of the changes in product warranty liabilities for each of the two
      years
      in the period ended December&#160;31, 2006, is shown below (in millions): </div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="425">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="21">
            </td>
            <td width="3">
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="567">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Balance
                as of January&#160;1,
                2005&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="28">
              <div style="MARGIN: 0pt" align="right">43.4</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="567">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Expense,
                net</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="28">
              <div style="MARGIN: 0pt" align="right">16.7</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="567">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Settlements</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="28">
              <div style="MARGIN: 0pt" align="right">(26.0</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="567">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Foreign
                currency translation and other</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="28" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(1.7</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: white 0.5pt solid;">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="567">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Balance
                as of December&#160;31, 2005</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="28">
              <div style="MARGIN: 0pt" align="right">32.4</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="567">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Expense,
                net</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="28">
              <div style="MARGIN: 0pt" align="right">17.5</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="567">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Settlements</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="28">
              <div style="MARGIN: 0pt" align="right">(12.4</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="567">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Foreign
                currency translation and other</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="28" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">3.4</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="567">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Balance
                as of December&#160;31, 2006</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="28" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">40.9</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>

      </table>
    </div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><i>Environmental
      Matters</i></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      Company is subject to local, state, federal and foreign laws, regulations and
      ordinances which govern activities or operations that may have adverse
      environmental effects and which impose liability for clean-up costs resulting
      from past spills, disposals or other releases of hazardous wastes and
      environmental compliance. The Company&#8217;s policy is to comply with all applicable
      environmental laws and to maintain an environmental management program based
      on
      ISO 14001 to ensure compliance. However, the Company currently is, has been
      and
      in the future may become the subject of formal or informal enforcement actions
      or procedures. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-44</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
</div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt" align="center"><strong>LEAR CORPORATION AND
      SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>(12) Commitments
      and
      Contingencies &#8211; (continued)</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      Company has been named as a potentially responsible party at several third-party
      landfill sites and is engaged in the cleanup of hazardous waste at certain
      sites
      owned, leased or operated by the Company, including several properties acquired
      in its 1999 acquisition of UT Automotive. Certain present and former properties
      of<br>UT Automotive are subject to environmental liabilities which may be
      significant. The Company obtained agreements and indemnities with respect to
      certain environmental liabilities from UTC in connection with its acquisition
      of
      UT Automotive. UTC manages and directly funds these environmental liabilities
      pursuant to its agreements and indemnities with the Company. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">As of
      December&#160;31, 2006 and December&#160;31, 2005, the Company had recorded
      reserves for environmental matters of $3.6&#160;million and $3.2&#160;million,
      respectively. While the Company does not believe that the environmental
      liabilities associated with its current and former properties will have a
      material adverse effect on its business, consolidated financial position,
      results of operations or cash flows no assurances can be given in this regard.
      </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">One of
      the Company&#8217;s subsidiaries and certain predecessor companies were named as
      defendants in an action filed by three plaintiffs in August&#160;2001 in the
      Circuit Court of Lowndes County, Mississippi, asserting claims stemming from
      alleged environmental contamination caused by an automobile parts manufacturing
      plant located in Columbus, Mississippi. The plant was acquired by the Company
      as
      part of its acquisition of UT Automotive in May&#160;1999 and sold almost
      immediately thereafter, in June&#160;1999, to Johnson Electric Holdings Limited
      (&#8220;Johnson Electric&#8221;). In December&#160;2002, 61 additional cases were filed by
      approximately 1,000 plaintiffs in the same court against the Company and other
      defendants relating to similar claims. In September&#160;2003, the Company was
      dismissed as a party to these cases. In the first half of 2004, the Company
      was
      named again as a defendant in these same 61 additional cases and was also named
      in five new actions filed by approximately 150 individual plaintiffs related
      to
      alleged environmental contamination from the same facility. The plaintiffs
      in
      these actions are persons who allegedly were either residents and/or owned
      property near the facility or worked at the facility. In November&#160;2004, two
      additional lawsuits were filed by 28 plaintiffs (individuals and organizations),
      alleging property damage as a result of the alleged contamination. Each of
      these
      complaints seeks compensatory and punitive damages. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">All of
      the plaintiffs subsequently dismissed their claims for health effects and
      personal injury damages and the cases proceeded with approximately 280
      plaintiffs alleging property damage claims only. In March&#160;2005, the venue
      for these lawsuits was transferred from Lowndes County, Mississippi, to
      Lafayette County, Mississippi. In April&#160;2005, certain plaintiffs filed an
      amended complaint alleging negligence, nuisance, intentional tort and conspiracy
      claims and seeking compensatory and punitive damages. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">In the
      first quarter of 2006, co-defendant UTC entered into a settlement agreement
      with
      the plaintiffs. During the third quarter of 2006, the Company and co-defendant
      Johnson Electric entered into a settlement memorandum with the plaintiffs&#8217;
counsel outlining the terms of a global settlement, including establishing
      the
      requisite percentage of executed settlement agreements and releases that were
      required to be obtained from the individual plaintiffs for a final settlement
      to
      proceed. Since November&#160;2006, the Company has reached a final settlement
      with respect to approximately 85% of the plaintiffs involving an aggregate
      payment of $875,000 and is in the process of attempting to resolve the remaining
      claims. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">UTC,
      the
      former owner of UT Automotive, and Johnson Electric have each sought
      indemnification for losses associated with the Mississippi claims from the
      Company under the respective acquisition agreements, and the Company has claimed
      indemnification from them under the same agreements. In the first quarter of
      2006, UTC filed a lawsuit against the Company in the State of Connecticut
      Superior Court, District of Hartford, seeking declaratory relief and
      indemnification from the Company for the settlement amount, attorney fees,
      costs
      and expenses UTC paid in settling and defending the Columbus, Mississippi
      lawsuits. In the second quarter of 2006, the Company filed a motion to dismiss
      this matter and filed a separate action against UTC and Johnson Electric in
      the
      State of Michigan, Circuit Court for the County of Oakland, seeking declaratory
      relief and indemnification from UTC or Johnson Electric for the settlement
      amount, attorney fees, costs and expenses the Company has paid, or will pay,
      in
      settling and defending the Columbus, Mississippi lawsuits. During the fourth
      quarter of 2006, UTC agreed to dismiss the </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-45</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
</div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt" align="center"><strong>LEAR CORPORATION AND
      SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>(12) Commitments
      and
      Contingencies &#8211; (continued)</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt">lawsuit filed in the State
      of Connecticut Superior Court, District of Hartford and agreed to proceed with
      the lawsuit filed in the State of Michigan, Circuit Court for the County of
      Oakland. During the first quarter of 2007, Johnson Electric and UTC each filed
      counter-claims against the Company seeking declaratory relief and
      indemnification from the Company for the settlement amount, attorney fees,
      costs
      and expenses each has paid or will pay in settling and defending the Columbus,
      Mississippi lawsuits. To date, no company admits to, or has been found to have,
      an obligation to fully defend and indemnify any other. The Company intends
      to
      vigorously pursue its claims against UTC and Johnson Electric and believes
      that
      it is entitled to indemnification from either UTC or Johnson Electric for its
      losses. However, the ultimate outcome of these matters is unknown. </div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><i>Other Matters</i></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">In
      January&#160;2004, the Securities and Exchange Commission (the &#8220;SEC&#8221;) commenced
      an informal inquiry into the Company&#8217;s September&#160;2002 amendment of its 2001
      Form 10-K. The amendment was filed to report the Company&#8217;s employment of
      relatives of certain of its directors and officers and certain related party
      transactions. The SEC&#8217;s inquiry does not relate to the Company&#8217;s consolidated
      financial statements. In February&#160;2005, the staff of the SEC informed the
      Company that it proposed to recommend to the SEC that it issue an administrative
      &#8220;cease and desist&#8221; order as a result of the Company&#8217;s failure to disclose the
      related party transactions in question prior to the amendment of its 2001 Form
      10-K. The Company expects to consent to the entry of the order as part of a
      settlement of this matter. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 11pt">In
      April&#160;2006, a former employee of the Company filed a purported class action
      lawsuit in the U.S. District Court for the Eastern District of Michigan against
      the Company, members of its Board of Directors, members of its Employee Benefits
      Committee (the &#8220;EBC&#8221;) and certain members of its human resources personnel
      alleging violations of the Employment Retirement Income Security Act (&#8220;ERISA&#8221;)
      with respect to the Company&#8217;s retirement savings plans for salaried and hourly
      employees. In the second quarter of 2006, the Company was served with three
      additional purported class action ERISA lawsuits, each of which contained
      similar allegations against the Company, members of its Board of Directors,
      members of its EBC and certain members of its senior management and its human
      resources personnel. At the end of the second quarter of 2006, the court entered
      an order consolidating these four lawsuits. During the third quarter of 2006,
      plaintiffs filed their consolidated complaint, which alleges breaches of
      fiduciary duties substantially similar to those alleged in the four individually
      filed lawsuits. The consolidated complaint continues to name certain current
      and
      former members of the Board of Directors and the EBC and certain members of
      senior management and adds certain other current and former members of the
      EBC.
      The consolidated complaint generally alleges that the defendants breached their
      fiduciary duties to plan participants in connection with the administration
      of
      the Company&#8217;s retirement savings plans for salaried and hourly employees. The
      fiduciary duty claims are largely based on allegations of breaches of the
      fiduciary duties of prudence and loyalty and of over-concentration of plan
      assets in the Company&#8217;s common stock. The plaintiffs purport to bring these
      claims on behalf of the plans and all persons who were participants in or
      beneficiaries of the plans from October&#160;21, 2004, to the present and seek
      to recover losses allegedly suffered by the plans. The complaints do not specify
      the amount of damages sought. During the fourth quarter of 2006, the defendants
      filed a motion to dismiss all defendants and all counts in the consolidated
      complaint. No determination has been made that a class action can be maintained,
      and there have been no decisions on the merits of the cases. The Company intends
      to vigorously defend the consolidated lawsuit. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Between
      February&#160;9, 2007 and February&#160;21, 2007, certain stockholders filed six
      purported class action lawsuits against the Company, certain members of the
      Company&#8217;s Board of Directors and American Real Estate Partners,&#160;L.P. and
      certain of its affiliates (collectively, &#8220;AREP&#8221;). Three of the lawsuits were
      filed in the Delaware Court of Chancery and have since been consolidated into
      a
      single action. Three of the lawsuits were filed in Michigan Circuit Court.
      The
      class action complaints, which are substantially similar, generally allege
      that
      the Agreement and Plan of Merger (&#8220;Merger Agreement&#8221;) unfairly limits the
      process of selling the Company and that certain members of the Company&#8217;s Board
      of Directors have breached their fiduciary duties in connection with the Merger
      Agreement and have acted with conflicts of interest in approving the Merger
      Agreement. The lawsuits seek to enjoin the merger, to invalidate the Merger
      Agreement and to enjoin the operation of certain provisions of the</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-46</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
</div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt" align="center"><strong>LEAR CORPORATION AND
      SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>(12) Commitments
      and
      Contingencies &#8211; (continued)</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt">Merger Agreement, a
      declaration that certain members of the Company&#8217;s Board of Directors breached
      their fiduciary duties in approving the Merger Agreement and an award of
      unspecified damages or rescission in the event that the proposed merger with
      AREP is completed. On February&#160;23, 2007, the plaintiffs in the consolidated
      Delaware action filed a consolidated amended complaint, a motion for expedited
      proceedings and a motion to preliminarily enjoin the merger contemplated by
      the
      Merger Agreement. The Company believes that the lawsuits are without merit
      and
      intends to defend against them vigorously. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Prior
      to
      the acquisition of UT Automotive from UTC in May&#160;1999, one of the Company&#8217;s
      subsidiaries purchased the stock of a UT Automotive subsidiary. In connection
      with the acquisition, the Company agreed to indemnify UTC for certain matters,
      including tax consequences if the Internal Revenue Service (the &#8220;IRS&#8221;)
      overturned UTC&#8217;s tax treatment of the transaction. On June&#160;28, 2006, this
      matter was settled with the Appeals Office of the IRS. As a result of the IRS
      settlement in the second quarter of 2006, the Company was required to make
      an
      indemnity payment to UTC of $20.5&#160;million. The payment has been recorded as
      an adjustment to the original purchase price and allocated to goodwill in a
      manner consistent with the original purchase price allocation. The amount
      allocated to the Interiors &#8212; Americas unit of $2.9&#160;million was immediately
      written off as this unit&#8217;s goodwill is fully impaired. On September&#160;1,
      2006, the Company entered into a Payment Agreement and Limited Release with
      UTC
      in order to settle its indemnity obligation related to this issue. In connection
      with this agreement, the Company made a payment to UTC in the amount of
      $20.6&#160;million, including interest up to the date of the agreement. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Although
      the Company records reserves for legal, product warranty and environmental
      matters in accordance with SFAS No. 5, &#8220;Accounting for Contingencies,&#8221; the
      outcomes of these matters are inherently uncertain. Actual results may differ
      significantly from current estimates. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      Company is involved in certain other legal actions and claims arising in the
      ordinary course of business, including, without limitation, commercial disputes,
      intellectual property matters, personal injury claims, tax claims and employment
      matters. Although the outcome of any legal matter cannot be predicted with
      certainty, the Company does not believe that any of these other legal
      proceedings or matters in which the Company is currently involved, either
      individually or in the aggregate, will have a material adverse effect on its
      business, consolidated financial position, results of operations or cash flows.
      </div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>Employees</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Approximately
      78% of the Company&#8217;s employees are members of industrial trade unions and are
      employed under the terms of collective bargaining agreements. Collective
      bargaining agreements covering approximately 58% of the Company&#8217;s unionized
      workforce of approximately 81,500 employees, including 20% of the Company&#8217;s
      unionized workforce in the United States and Canada, are scheduled to expire
      in
      2007. Management does not anticipate any significant difficulties with respect
      to the agreements as they are renewed. </div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>Lease
      Commitments</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 6.65pt; TEXT-INDENT: 18pt">A
      summary of lease commitments as of December&#160;31, 2006, under non-cancelable
      operating leases with terms exceeding one year is shown below (in millions):
      </div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="425">
            </td>
            <td width="13">
            </td>
            <td width="5">
            </td>
            <td width="24">
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="566">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">2007&#160;&#160;
&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="33">
              <div style="MARGIN: 0pt" align="right">93.7</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="566">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">2008</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="33">
              <div style="MARGIN: 0pt" align="right">75.6</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="566">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">2009</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="33">
              <div style="MARGIN: 0pt" align="right">65.3</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="566">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">2010</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="33">
              <div style="MARGIN: 0pt" align="right">52.9</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="566">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">2011</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="33">
              <div style="MARGIN: 0pt" align="right">43.5</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="566">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">2012
                and thereafter</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="33" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">71.3</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="566">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Total</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="33" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">402.3</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="MARGIN: 6.65pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-47</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
</div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 6.65pt"><br><br><br></div>
    <div>&#160;</div>
    <div style="MARGIN: 0pt" align="center"><strong>LEAR CORPORATION AND
      SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>(12) Commitments
      and
      Contingencies &#8211; (continued)</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      Company previously guaranteed the residual value of certain of its leased
      assets. In October&#160;2006, the residual value guarantees were released in
      conjunction with the expiration of the related leases. The Company was not
      required to make any payments related to these residual value guarantees. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      Company&#8217;s operating leases cover principally buildings and transportation
      equipment. Rent expense was $133.8&#160;million, $136.1&#160;million and
      $125.0&#160;million for the years ended December&#160;31, 2006, 2005 and 2004,
      respectively. </div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>(13) Segment
      Reporting</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Historically,
      the Company has had three reportable operating segments: seating, electronic
      and
      electrical and interior. The seating segment includes seat systems and
      components thereof. The electronic and electrical segment includes electronic
      products and electrical distribution systems, primarily wire harnesses and
      junction boxes; interior control and entertainment systems; and wireless
      systems. The interior segment includes instrument panels and cockpit systems,
      headliners and overhead systems, door panels, flooring and acoustic systems
      and
      other interior products. See Note 3, &#8220;Divestiture of Interior Business.&#8221; </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Each
      of
      the Company&#8217;s operating segments reports its results from operations and makes
      its requests for capital expenditures directly to the chief operating
      decision-making group. The economic performance of each operating segment is
      driven primarily by automobile production volumes in the geographic regions
      in
      which it operates, as well as by the success of the vehicle platforms for which
      it supplies products. Also, each operating segment operates in the competitive
      tier I automotive supplier environment and is continually working with its
      customers to manage costs and improve quality. The Company&#8217;s manufacturing
      facilities generally use just-in-time manufacturing techniques to produce and
      distribute their automotive interior products. The Company&#8217;s production
      processes generally make use of unskilled labor, dedicated facilities,
      sequential manufacturing processes and commodity raw materials. The Other
      category includes the corporate headquarters, geographic headquarters and the
      elimination of intercompany activities, none of which meets the requirements
      of
      being classified as an operating segment. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      accounting policies of the Company&#8217;s operating segments are the same as those
      described in Note 2, &#8220;Summary of Significant Accounting Policies.&#8221; The Company
      evaluates the performance of its operating segments based primarily on (i)
      revenues from external customers, (ii) income (loss) before goodwill impairment
      charges, loss on divestiture of interior business, interest, other expense,
      provision for income taxes, minority interests in consolidated subsidiaries,
      equity in net (income) loss of affiliates and cumulative effect of a change
      in
      accounting principle (&#8220;segment earnings&#8221;) and (iii) cash flows, being defined as
      segment earnings less capital expenditures plus depreciation and amortization.
      </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 6.65pt; TEXT-INDENT: 18pt">A
      summary of revenues from external customers and other financial information
      by
      reportable operating segment is shown below (in millions): </div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="179">
            </td>
            <td width="14">
            </td>
            <td width="5">
            </td>
            <td width="41">
            </td>
            <td width="14">
            </td>
            <td width="6">
            </td>
            <td width="41">
            </td>
            <td width="14">
            </td>
            <td width="5">
            </td>
            <td width="35">
            </td>
            <td width="14">
            </td>
            <td width="5">
            </td>
            <td width="30">
            </td>
            <td width="14">
            </td>
            <td width="5">
            </td>
            <td width="41">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="238">&#160;</td>
            <td valign="bottom" width="19">&#160;</td>
            <td colspan="14" valign="bottom" width="366" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2006</strong></div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="238">&#160;</td>
            <td valign="bottom" width="19">&#160;</td>
            <td colspan="2" valign="bottom" width="62">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Seating</strong></div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td colspan="2" valign="bottom" width="63">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Electronic<br>and
                Electrical</strong></div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td colspan="2" valign="bottom" width="54">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Interior</strong></div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td colspan="2" valign="bottom" width="47">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Other</strong></div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td colspan="2" valign="bottom" width="62" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Consolidated</strong></div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="238">&#160;</td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="7" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="54" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="9" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="54" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="7" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="46" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="7" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="40" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="54">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="238">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Revenues
                from external
                customers&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="19">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="54">
              <div style="MARGIN: 0pt" align="right">11,624.8</div>
            </td>
            <td valign="bottom" width="19">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="9">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="54">
              <div style="MARGIN: 0pt" align="right">2,996.9</div>
            </td>
            <td valign="bottom" width="19">
              <div style="MARGIN: 0pt" align="justify">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt" align="justify">$</div>
            </td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">3,217.2</div>
            </td>
            <td valign="bottom" width="19">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">$ </div>
            </td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="19">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="54">
              <div style="MARGIN: 0pt" align="right">17,838.9</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="238">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Segment
                earnings(1)</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="54">
              <div style="MARGIN: 0pt" align="right">604.0</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="54">
              <div style="MARGIN: 0pt" align="right">102.5</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">(183.8</div>
            </td>
            <td valign="bottom" width="19">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">&#160;&#160;</div>
            </td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">(241.7</div>
            </td>
            <td valign="bottom" width="19">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="54">
              <div style="MARGIN: 0pt" align="right">281.0</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="238">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Depreciation
                and amortization</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="54">
              <div style="MARGIN: 0pt" align="right">167.3</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="54">
              <div style="MARGIN: 0pt" align="right">110.1</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">93.8</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">&#160;&#160;</div>
            </td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">21.0</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="54">
              <div style="MARGIN: 0pt" align="right">392.2</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="238">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Capital
                expenditures</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="54">
              <div style="MARGIN: 0pt" align="right">161.1</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="54">
              <div style="MARGIN: 0pt" align="right">77.0</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">98.7</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">&#160;&#160;</div>
            </td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">10.8</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="54">
              <div style="MARGIN: 0pt" align="right">347.6</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="238">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Total
                assets</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="54">
              <div style="MARGIN: 0pt" align="right">4,386.4</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="54">
              <div style="MARGIN: 0pt" align="right">2,374.5</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">528.3</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">&#160;&#160;</div>
            </td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">561.3</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="54">
              <div style="MARGIN: 0pt" align="right">7,850.5</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-48</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
</div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt" align="center"><strong>LEAR CORPORATION AND
      SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 6.65pt"><strong>(13) Segment
      Reporting &#8211; (continued)</strong></div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="204">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="35">
            </td>
            <td width="12">
            </td>
            <td width="6">
            </td>
            <td width="40">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="30">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="25">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="39">
            </td>
            <td width="2">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="272">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="14" valign="bottom" width="331" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2005</strong></div>
            </td>
            <td valign="bottom" width="3">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="272">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="53">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Seating</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="63">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Electronic<br>and
                Electrical</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="46">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Interior</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="41">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Other</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="59" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><br><strong>Consolidated</strong></div>
            </td>
            <td valign="bottom" width="3">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="272">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="46" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="54" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="40" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="34" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">&#160;</td>
            <td valign="bottom" width="3">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="272">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Revenues
                from external
                customers&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">11,035.0</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="9">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="54">
              <div style="MARGIN: 0pt" align="right">2,956.6</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">3,097.6</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">17,089.2</div>
            </td>
            <td valign="bottom" width="3">
              <div style="MARGIN: 0pt">&#160;&#160;</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="272">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Segment
                earnings(1)</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">323.3</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="54">
              <div style="MARGIN: 0pt" align="right">180.0</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">(191.1</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">(206.8</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">105.4</div>
            </td>
            <td valign="bottom" width="3">
              <div style="MARGIN: 0pt">&#160;&#160;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="272">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Depreciation
                and amortization</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">150.7</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="54">
              <div style="MARGIN: 0pt" align="right">106.0</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">116.6</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">20.1</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">393.4</div>
            </td>
            <td valign="bottom" width="3">
              <div style="MARGIN: 0pt">&#160;&#160;</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="272">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Capital
                expenditures</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">229.2</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="54">
              <div style="MARGIN: 0pt" align="right">102.9</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">190.9</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">45.4</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">568.4</div>
            </td>
            <td valign="bottom" width="3">
              <div style="MARGIN: 0pt">&#160;&#160;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="272">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Total
                assets</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">3,985.2</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="54">
              <div style="MARGIN: 0pt" align="right">2,122.4</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">1,506.8</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">674.0</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">8,288.4</div>
            </td>
            <td valign="bottom" width="3">&#160;</td>
          </tr>

      </table>
    </div>
    <div style="MARGIN: 0pt"><br></div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="200">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="35">
            </td>
            <td width="12">
            </td>
            <td width="6">
            </td>
            <td width="40">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="30">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="30">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="39">
            </td>
            <td width="2">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="267">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="14" valign="bottom" width="336" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2005</strong></div>
            </td>
            <td valign="bottom" width="3">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="267">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="53">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Seating</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="63">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Electronic<br>and
                Electrical</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="46">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Interior</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="46">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Other</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="59" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><br><strong>Consolidated</strong></div>
            </td>
            <td valign="bottom" width="3">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="267">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="46" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="54" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="40" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="40" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">&#160;</td>
            <td valign="bottom" width="3">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="267">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Revenues
                from external
                customers&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">11,314.6</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="9">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="54">
              <div style="MARGIN: 0pt" align="right">2,680.4</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">2,965.0</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">16,960.0</div>
            </td>
            <td valign="bottom" width="3">
              <div style="MARGIN: 0pt">&#160;&#160;</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="267">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Segment
                earnings(1)</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">682.1</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="54">
              <div style="MARGIN: 0pt" align="right">210.9</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">85.1</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">(209.7</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">768.4</div>
            </td>
            <td valign="bottom" width="3">
              <div style="MARGIN: 0pt">&#160;&#160;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="267">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Depreciation
                and amortization</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">133.4</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="54">
              <div style="MARGIN: 0pt" align="right">89.9</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">108.9</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">22.9</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">355.1</div>
            </td>
            <td valign="bottom" width="3">
              <div style="MARGIN: 0pt">&#160;&#160;</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="267">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Capital
                expenditures</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">208.6</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="54">
              <div style="MARGIN: 0pt" align="right">116.4</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">86.9</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">17.1</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">429.0</div>
            </td>
            <td valign="bottom" width="3">
              <div style="MARGIN: 0pt">&#160;&#160;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="267">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Total
                assets</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">4,172.7</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="54">
              <div style="MARGIN: 0pt" align="right">2,122.4</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">2,403.6</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">1,070.8</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">9,944.4</div>
            </td>
            <td valign="bottom" width="3">&#160;</td>
          </tr>

      </table>
    </div>
    <div style="FONT-SIZE: 11pt; MARGIN: 0pt; LINE-HEIGHT: 13pt">&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;</div>
    <div style="MARGIN-TOP: 0pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: -12pt; TEXT-INDENT: -18pt">(1)
      </div>
    <div style="MARGIN-TOP: 0pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 2.5pt">See
      definition above. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">In 2005,
      the Company changed its allocation of cash and cash equivalents. Cash and cash
      equivalents, previously reflected in the reportable operating segments, has
      been
      reflected in total in &#8220;Other.&#8221; Total assets by reportable operating segment as
      of December&#160;31, 2004, reflect this change. In addition, prior years&#8217;
reportable operating segment information has been reclassified to reflect the
      current organizational structure of the Company. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">For the
      year ended December&#160;31, 2006, segment earnings include restructuring
      charges of $39.9&#160;million, $42.6&#160;million, $10.1&#160;million and
      $6.5&#160;million in the seating, electronic and electrical and interior
      segments and in the other category, respectively (Note 5, &#8220;Restructuring&#8221;). In
      addition, 2006 segment earnings include additional fixed asset impairment
      charges of $10.0&#160;million in the interior segment (Note 2, &#8220;Summary of
      Significant Accounting Policies&#8221;). </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">For the
      year ended December&#160;31, 2005, segment earnings includes restructuring
      charges of $30.9&#160;million, $30.0&#160;million, $27.9&#160;million and
      $2.0&#160;million in the seating, electronic and electrical and interior
      segments and in the other category, respectively. In addition, 2005 segment
      earnings include additional fixed asset impairment charges of $82.3&#160;million
      in the interior segment. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">For the
      year ended December&#160;31, 2004, segment earnings include restructuring
      charges of $7.8&#160;million in the seating segment. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-49</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
</div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt" align="center"><strong>LEAR CORPORATION AND
      SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 6.65pt"><strong>(13) Segment
      Reporting &#8211; (continued)</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 6.65pt; TEXT-INDENT: 18pt">A
      reconciliation of consolidated income before goodwill impairment charges, loss
      on divestiture of interior business, interest, other expense, provision for
      income taxes, minority interests in consolidated subsidiaries, equity in net
      (income) loss of affiliates and cumulative effect of a change in accounting
      principal to income (loss) before provision for income taxes, minority interests
      in consolidated subsidiaries, equity in net (income) loss of affiliates and
      effect of a change in accounting principle is shown below (in millions): </div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="322">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="26">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="34">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="26">
            </td>
            <td width="3">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="430">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td colspan="8" valign="bottom" width="172" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>For
                the Year Ended
                December&#160;31,</strong></div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="430">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td colspan="2" valign="bottom" width="42">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2006</strong></div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td colspan="2" valign="bottom" width="52">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2005</strong></div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td colspan="2" valign="bottom" width="42" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2004</strong></div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="430">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="35" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="45" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">&#160;</td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="430">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Segment
                earnings </div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">522.7</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">312.2</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">978.1</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="430">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Corporate
                and geographic headquarters and elimination of intercompany<br>activity
                (&#8220;Other&#8221;) </div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="35" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(241.7</div>
            </td>
            <td valign="bottom" width="17" style="border-bottom: white 0.5pt solid;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="45" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(206.8</div>
            </td>
            <td valign="bottom" width="17" style="border-bottom: white 0.5pt solid;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="35" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(209.7</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: white 0.5pt solid;">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="430">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Income
                before goodwill impairment charges, loss on divestiture of
                Interior<br>business, interest, other expense, provision for income taxes,
                minority<br>interests in consolidated subsidiaries, equity in net (income)
                loss of affiliates<br>and cumulative effect of a change in accounting
                principle </div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">281.0</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">105.4</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">768.4</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="430">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Goodwill
                impairment charges </div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">2.9</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">1,012.8</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="430">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Loss
                on divestiture of Interior business </div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">636.0</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="430">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Interest
                expense </div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">209.8</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">183.2</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">165.5</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="430">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Other
                expense, net </div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="35" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">85.7</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="45" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">38.0</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="35" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">38.6</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="430">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Income
                (loss) before provision for income taxes, minority interests
                in<br>consolidated subsidiaries and equity in net (income) loss of
                affiliates and<br>cumulative effect of a change in accounting principle
                </div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="35" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">(653.4</div>
            </td>
            <td valign="bottom" width="17" style="border-bottom: white 3pt double;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="45" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">(1,128.6</div>
            </td>
            <td valign="bottom" width="17" style="border-bottom: white 3pt double;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="35" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">564.3</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>

      </table>
    </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 6.65pt; TEXT-INDENT: 18pt">Revenues
      from external customers and tangible long-lived assets for each of the
      geographic areas in which the Company operates is shown below (in millions):
      </div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="308">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="35">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="35">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="35">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="411">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="8" valign="bottom" width="195" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>For
                the Year Ended
                December&#160;31,</strong></div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="411">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="54">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2006</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="54">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2005</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="53" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2004</strong></div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="411">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="47" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="47" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="47">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="411">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Revenues
                from external customers:</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="47">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="47">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="47">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="411">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">United
                States&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="47">
              <div style="MARGIN: 0pt" align="right">6,624.3</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="47">
              <div style="MARGIN: 0pt" align="right">6,252.2</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="47">
              <div style="MARGIN: 0pt" align="right">6,200.7</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="411">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Canada</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="47">
              <div style="MARGIN: 0pt" align="right">1,375.3</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="47">
              <div style="MARGIN: 0pt" align="right">1,374.1</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="47">
              <div style="MARGIN: 0pt" align="right">1,317.8</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="411">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Germany</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="47">
              <div style="MARGIN: 0pt" align="right">2,034.3</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="47">
              <div style="MARGIN: 0pt" align="right">2,123.4</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="47">
              <div style="MARGIN: 0pt" align="right">2,026.0</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="411">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Mexico</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="47">
              <div style="MARGIN: 0pt" align="right">1,789.5</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="47">
              <div style="MARGIN: 0pt" align="right">1,595.6</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="47">
              <div style="MARGIN: 0pt" align="right">1,475.7</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="411">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Other
                countries</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="47" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">6,015.5</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="47" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">5,743.9</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="47" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">5,939.8</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="411">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Total</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="47" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">17,838.9</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="47" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">17,089.2</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="47" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">16,960.0</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="MARGIN: 0pt"><br></div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="368">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="32">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="32">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="491">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="5" valign="bottom" width="115" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>December&#160;31,</strong></div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="491">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="49">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2006</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="49" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2005</strong></div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="491">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="42" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="42">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="491">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Tangible
                long-lived assets:</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="42">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="42">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="491">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">United
                States&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="42">
              <div style="MARGIN: 0pt" align="right">472.6</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="42">
              <div style="MARGIN: 0pt" align="right">563.3</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="491">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Canada</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="42">
              <div style="MARGIN: 0pt" align="right">51.5</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="42">
              <div style="MARGIN: 0pt" align="right">50.6</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="491">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Germany</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="42">
              <div style="MARGIN: 0pt" align="right">161.3</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="42">
              <div style="MARGIN: 0pt" align="right">185.1</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="491">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Mexico</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="42">
              <div style="MARGIN: 0pt" align="right">168.2</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="42">
              <div style="MARGIN: 0pt" align="right">153.9</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="491">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Other
                countries</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="42" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">618.1</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="42" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">661.8</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="491">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Total</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="42" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">1,471.7</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="42" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">1,614.7</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 11pt"><br></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 11pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-50</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
</div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt" align="center"><strong>LEAR CORPORATION AND
      SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 6.65pt"><strong>(13) Segment
      Reporting &#8211; (continued)</strong></div>
    <div style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 6.65pt; TEXT-INDENT: 18pt">A
      substantial majority of the Company&#8217;s consolidated and reportable operating
      segment revenues are from four automotive manufacturing companies, with General
      Motors and Ford and their respective affiliates accounting for 55%, 53% and
      56%
      of the Company&#8217;s net sales in 2006, 2005 and 2004, respectively. Excluding net
      sales to Saab, Volvo, Jaguar and Land Rover, which are affiliates of General
      Motors or Ford, General Motors and Ford accounted for approximately 47%, 44%
      and
      46% of the Company&#8217;s net sales in 2006, 2005 and 2004, respectively. The
      following is a summary of the percentage of revenues from major customers:
      </div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="330">
            </td>
            <td width="12">
            </td>
            <td width="21">
            </td>
            <td width="25">
            </td>
            <td width="21">
            </td>
            <td width="25">
            </td>
            <td width="21">
            </td>
            <td width="8">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="440">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="5" valign="bottom" width="155" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>For
                the Year Ended
                December&#160;31,</strong></div>
            </td>
            <td valign="bottom" width="11">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="440">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="28">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2006</strong></div>
            </td>
            <td valign="bottom" width="34">&#160;</td>
            <td valign="bottom" width="28">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2005</strong></div>
            </td>
            <td valign="bottom" width="34">&#160;</td>
            <td valign="bottom" width="29" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2004</strong></div>
            </td>
            <td valign="bottom" width="11">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="440">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="28" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="34">&#160;</td>
            <td valign="bottom" width="28" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="34">&#160;</td>
            <td valign="bottom" width="29">&#160;</td>
            <td valign="bottom" width="11">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="440">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">General
                Motors
                Corporation&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="28">
              <div style="MARGIN: 0pt" align="right">31.9</div>
            </td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt">%&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="28">
              <div style="MARGIN: 0pt" align="right">28.3</div>
            </td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt">%&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="29">
              <div style="MARGIN: 0pt" align="right">31.4</div>
            </td>
            <td valign="bottom" width="11">
              <div style="MARGIN: 0pt">%</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="440">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Ford
                Motor Company</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="28">
              <div style="MARGIN: 0pt" align="right">22.6</div>
            </td>
            <td valign="bottom" width="34">&#160;</td>
            <td valign="bottom" width="28">
              <div style="MARGIN: 0pt" align="right">24.7</div>
            </td>
            <td valign="bottom" width="34">&#160;</td>
            <td valign="bottom" width="29">
              <div style="MARGIN: 0pt" align="right">24.1</div>
            </td>
            <td valign="bottom" width="11">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="440">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">DaimlerChrysler</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="28">
              <div style="MARGIN: 0pt" align="right">10.3</div>
            </td>
            <td valign="bottom" width="34">&#160;</td>
            <td valign="bottom" width="28">
              <div style="MARGIN: 0pt" align="right">11.4</div>
            </td>
            <td valign="bottom" width="34">&#160;</td>
            <td valign="bottom" width="29">
              <div style="MARGIN: 0pt" align="right">11.8</div>
            </td>
            <td valign="bottom" width="11">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="440">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">BMW</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="28">
              <div style="MARGIN: 0pt" align="right">7.4</div>
            </td>
            <td valign="bottom" width="34">&#160;</td>
            <td valign="bottom" width="28">
              <div style="MARGIN: 0pt" align="right">7.6</div>
            </td>
            <td valign="bottom" width="34">&#160;</td>
            <td valign="bottom" width="29">
              <div style="MARGIN: 0pt" align="right">7.5</div>
            </td>
            <td valign="bottom" width="11">&#160;</td>
          </tr>

      </table>
    </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">In
      addition, a portion of the Company&#8217;s remaining revenues are from the above
      automotive manufacturing companies through various other automotive suppliers.
      </div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>(14) Financial
      Instruments</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      carrying values of the Company&#8217;s senior notes vary from their fair values. The
      fair values were determined by reference to quoted market prices of these
      securities. As of December&#160;31, 2006 and 2005, the aggregate carrying value
      of the Company&#8217;s senior notes was $1.4&#160;billion and $1.8&#160;billion,
      respectively, as compared to an estimated fair value of $1.3&#160;billion and
      $1.6&#160;billion, respectively. As of December&#160;31, 2006 and 2005, the
      carrying values of the Company&#8217;s other senior indebtedness and other financial
      instruments approximated their fair values, which were determined based on
      related instruments currently available to the Company for similar borrowings
      with like maturities. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Certain
      of the Company&#8217;s European and Asian subsidiaries periodically factor their
      accounts receivable with financial institutions. Such receivables are factored
      without recourse to the Company and are excluded from accounts receivable in
      the
      consolidated balance sheets. As of December&#160;31, 2006 and December&#160;31,
      2005, the amount of factored receivables was $256.3&#160;million and
      $256.2&#160;million, respectively. The Company cannot provide any assurances
      that these factoring facilities will be available or utilized in the future.
      </div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>Asset-Backed
      Securitization Facility </i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      Company and several of its U.S. subsidiaries sell certain accounts receivable
      to
      a wholly owned, consolidated, bankruptcy-remote special purpose corporation
      (Lear ASC Corporation) under an asset-backed securitization facility (the &#8220;ABS
      facility&#8221;). In turn, Lear ASC Corporation transfers undivided interests in up to
      $150&#160;million of the receivables to bank-sponsored commercial paper
      conduits. The level of funding utilized under this facility is based on the
      credit ratings of the Company&#8217;s major customers, the level of aggregate accounts
      receivable in a specific month and the Company&#8217;s funding requirements. Should
      the Company&#8217;s major customers experience further reductions in their credit
      ratings, the Company may be unable or choose not to utilize the ABS facility
      in
      the future. Should this occur, the Company would utilize its New Credit
      Agreement to replace the funding currently provided by the ABS facility. In
      addition, the ABS facility providers can elect to discontinue the program in
      the
      event the Company&#8217;s senior secured debt credit rating declines to below B- or B3
      by Standard &amp; Poor&#8217;s Ratings Services or Moody&#8217;s Investors Service,
      respectively. In October&#160;2006, the ABS facility was amended to extend the
      termination date from October&#160;2006 to October&#160;2007. No assurances can
      be given that the ABS facility will be extended upon its maturity. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      Company retains a subordinated ownership interest in the pool of receivables
      sold to Lear ASC Corporation. This retained interest is recorded at fair value,
      which is generally based on a discounted cash flow analysis. As of
      December&#160;31, 2006, accounts receivable totaling $568.6&#160;million had
      been transferred to Lear ASC </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-51</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
</div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt" align="center"><strong>LEAR CORPORATION AND
      SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>(14) Financial
      Instruments &#8211; (continued)</strong></div>
    <div style="MARGIN-TOP: 4.15pt; MARGIN-BOTTOM: 0pt">Corporation, but no
      undivided interests in the receivables were transferred to the conduits. As
      such, this retained interest is included in accounts receivable in the
      consolidated balance sheet as of December&#160;31, 2006. As of December&#160;31,
      2005, accounts receivable totaling $673.4&#160;million had been transferred to
      Lear ASC Corporation, including $523.4&#160;million of retained interests, which
      serves as credit enhancement for the facility and is included in accounts
      receivable in the consolidated balance sheet as of December&#160;31, 2005, and
      $150.0&#160;million of undivided interests, which was transferred to the
      conduits and is excluded from accounts receivable in the consolidated balance
      sheet as of December&#160;31, 2005. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">During
      the years ended December&#160;31, 2006, 2005 and 2004, the Company and its
      subsidiaries sold to Lear ASC Corporation adjusted accounts receivable totaling
      $4.4&#160;billion, $4.2&#160;billion and $4.7&#160;billion, respectively, under
      the ABS facility and recognized discounts of $8.0&#160;million,
      $4.7&#160;million and $1.4&#160;million, respectively. These discounts are
      included in other expense, net, in the consolidated statements of operations
      for
      the years ended December&#160;31, 2006, 2005 and 2004. The Company continues to
      service the transferred receivables and receives an annual servicing fee of
      1.0%
      of the sold accounts receivable. The conduit investors and Lear ASC Corporation
      have no recourse to the other assets of the Company or its subsidiaries for
      the
      failure of the accounts receivable obligors to pay timely on the accounts
      receivable. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 6.65pt; TEXT-INDENT: 18pt">Certain
      cash flows received from and paid to Lear ASC Corporation are shown below (in
      millions): </div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="317">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="30">
            </td>
            <td width="16">
            </td>
            <td width="5">
            </td>
            <td width="30">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="30">
            </td>
            <td width="2">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="423">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="8" valign="bottom" width="179" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>For
                the Year
                Ended<br>December&#160;31,</strong></div>
            </td>
            <td valign="bottom" width="3">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="423">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="47">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2006</strong></div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td colspan="2" valign="bottom" width="47">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2005</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="47" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2004</strong></div>
            </td>
            <td valign="bottom" width="3">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="423">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="40" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="40" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">&#160;</td>
            <td valign="bottom" width="3">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="423">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Proceeds
                from (repayments of)
                securitizations&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">(150.0</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">150.0</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="3">
              <div style="MARGIN: 0pt">&#160;&#160;</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="423">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Proceeds
                from collections reinvested in securitizations</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">4,476.2</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">4,288.1</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">4,664.4</div>
            </td>
            <td valign="bottom" width="3">
              <div style="MARGIN: 0pt">&#160;&#160;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="423">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Servicing
                fees received</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">6.1</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">5.3</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">5.5</div>
            </td>
            <td valign="bottom" width="3">
              <div style="MARGIN: 0pt">&#160;&#160;</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Under
      the
      provisions of FASB Interpretation (&#8220;FIN&#8221;) No. 46R, &#8220;Consolidation of Variable
      Interest Entities,&#8221; Lear ASC Corporation is a variable interest entity. The
      accounts of this entity have historically been included in the consolidated
      financial statements of the Company, as this entity is a wholly owned subsidiary
      of Lear. In addition, the bank conduits, which purchase undivided interests
      in
      the Company&#8217;s sold accounts receivable, are variable interest entities. Under
      the current ABS facility, the provisions of FIN No. 46R do not require the
      Company to consolidate any of the bank conduits&#8217; assets or liabilities. </div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>Derivative
      Instruments and Hedging Activities </i></strong></div>
    <div style="MARGIN-TOP: 4.15pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      Company uses derivative financial instruments, including forward foreign
      exchange, futures, option and swap contracts, to manage its exposures to
      fluctuations in foreign exchange rates and interest rates. The use of these
      financial instruments mitigates the Company&#8217;s exposure to these risks with the
      intent of reducing the variability of the Company&#8217;s operating results. The
      Company is not a party to leveraged derivatives. On the date a derivative
      contract is entered into, the Company designates the derivative as either (1)
      a
      hedge of a recognized asset or liability or of an unrecognized firm commitment
      (a fair value hedge), (2) a hedge of a forecasted transaction or of the
      variability of cash flows to be received or paid related to a recognized asset
      or liability (a cash flow hedge) or (3) a hedge of a net investment in a foreign
      operation (a net investment hedge). </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">For a
      fair value hedge, both the effective and ineffective portions of the change
      in
      the fair value of the derivative are recorded in earnings and reflected in
      the
      consolidated statement of operations on the same line as the gain or loss on
      the
      hedged item attributable to the hedged risk. For a cash flow hedge, the
      effective portion of the change in the fair value of the derivative is recorded
      in accumulated other comprehensive income (loss) in the consolidated balance
      sheet. When the underlying hedged transaction is realized, the gain or loss
      included in accumulated other comprehensive income (loss) is recorded in
      earnings and reflected in the consolidated statement of operations on the same
      line as the gain or loss on the hedged item attributable to the hedged risk.
      For
      a net investment hedge of a foreign operation, the effective portion of the
      change in the fair value of the derivative is recorded in cumulative translation
      adjustment, which is a component of accumulated other comprehensive income
      </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-52</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
</div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt" align="center"><strong>LEAR CORPORATION AND
      SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>(14) Financial
      Instruments &#8211; (continued)</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt">&#160;(loss) in the
      consolidated balance sheet. In addition, for both cash flow and net investment
      hedges, changes in the fair value excluded from the Company&#8217;s effectiveness
      assessments and the ineffective portion of changes in the fair value are
      recorded in earnings and reflected in the consolidated statement of operations
      as other expense, net. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      Company formally documents its hedge relationships, including the identification
      of the hedging instruments and the hedged items, as well as its risk management
      objectives and strategies for undertaking the hedge transaction. Derivatives
      are
      recorded at fair value in other current and long-term assets and other current
      and long-term liabilities in the consolidated balance sheet. This process
      includes linking derivatives that are designated as hedges of specific assets,
      liabilities, firm commitments or forecasted transactions. The Company also
      formally assesses, both at inception and at least quarterly thereafter, whether
      a derivative used in a hedging transaction is highly effective in offsetting
      changes in either the fair value or cash flows of the hedged item. When it
      is
      determined that a derivative ceases to be a highly effective hedge, the Company
      discontinues hedge accounting. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Forward
      foreign exchange, futures and option contracts &#8212; The Company uses forward
      foreign exchange, futures and option contracts to reduce the effect of
      fluctuations in foreign exchange rates on short-term, foreign currency
      denominated intercompany transactions and other known foreign currency
      exposures. Gains and losses on the derivative instruments are intended to offset
      gains and losses on the hedged transaction in an effort to reduce the earnings
      volatility resulting from fluctuations in foreign exchange rates. The principal
      currencies hedged by the Company include the Mexican peso and the Canadian
      dollar, as well as the Euro and other European currencies. Forward foreign
      exchange, futures and option contracts are accounted for as cash flow hedges
      when the hedged item is a forecasted transaction or the variability of cash
      flows to be received or paid related to a recognized asset or liability. As
      of
      December&#160;31, 2006, contracts designated as cash flow hedges with
      $464.9&#160;million of notional amount were outstanding with maturities of less
      than twelve months. As of December&#160;31, 2006, the fair market value of these
      contracts was approximately $15.0&#160;million. As of December&#160;31, 2006,
      other foreign currency derivative contracts that did not qualify for hedge
      accounting had a total notional amount outstanding of $346.7&#160;million. These
      foreign currency derivative contracts consist principally of cash transactions
      between three and thirty days, hedges of intercompany loans and hedges of
      certain other balance sheet exposures. As of December&#160;31, 2006, the fair
      market value of these contracts was approximately $1.6&#160;million. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Interest
      rate swap contracts &#8212; The Company uses interest rate swap contracts to manage
      its exposure to fluctuations in interest rates. Interest rate swap contracts
      which fix the interest payments of certain variable rate debt instruments or
      fix
      the market rate component of anticipated fixed rate debt instruments are
      accounted for as cash flow hedges. Interest rate swap contracts which hedge
      the
      change in fair market value of certain fixed rate debt instruments are accounted
      for as fair value hedges. As of December&#160;31, 2006, contracts representing
      $800.0&#160;million of notional amount were outstanding with maturity dates of
      August&#160;2007 through September&#160;2011. All of these contracts modify the
      variable rate characteristics of the Company&#8217;s variable rate debt instruments,
      which are generally set at three-month LIBOR rates. These contracts convert
      variable rate obligations into fixed rate obligations with a weighted average
      interest rate of 4.902%. The fair market value of all outstanding interest
      rate
      swap contracts is subject to changes in value due to changes in interest rates.
      As of December&#160;31, 2006, the fair market value of these contracts was
      approximately negative $2.7&#160;million. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">As of
      December&#160;31, 2006 and 2005, net gains of approximately $14.7&#160;million
      and $9.0&#160;million, respectively, related to derivative instruments and
      hedging activities were recorded in accumulated other comprehensive loss. During
      the years ended December&#160;31, 2006, 2005 and 2004, net gains (losses) of
      approximately $(2.2) million, $33.5&#160;million and $(7.4) million,
      respectively, related to the Company&#8217;s hedging activities were reclassified from
      accumulated other comprehensive loss into earnings. During the year ending
      December&#160;31, 2007, the Company expects to reclassify into earnings net
      gains of approximately $16.0&#160;million recorded in accumulated other
      comprehensive loss. Such gains will be reclassified at the time the underlying
      hedged transactions are realized. During the years ended December&#160;31, 2006,
      2005 and 2004, amounts recognized in the consolidated statements of operations
      related to changes in the fair value of cash flow and fair value hedges excluded
      from the effectiveness assessments and the ineffective portion of changes in
      the
      fair value of cash flow and fair value hedges were not material. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-53</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
</div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt" align="center"><strong>LEAR CORPORATION AND
      SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>(14) Financial
      Instruments &#8211; (continued)</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 6.65pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 11pt">Non-U.S.
      dollar financing transactions &#8212; The Company has designated its Euro-denominated
      senior notes (Note 8, &#8220;Long-Term Debt&#8221;) as a net investment hedge of long-term
      investments in its Euro-functional subsidiaries. As of December&#160;31, 2006,
      the amount recorded in accumulated other comprehensive loss related to the
      effective portion of the net investment hedge of foreign operations was
      approximately negative $147.2&#160;million. Such amount will be included in
      accumulated other comprehensive loss until the Company liquidates its related
      net investment in its designated foreign operations. </div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 6.65pt"><strong>(15) Quarterly
      Financial Data (unaudited)</strong></div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="248">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="30">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="30">
            </td>
            <td width="12">
            </td>
            <td width="6">
            </td>
            <td width="41">
            </td>
            <td width="12">
            </td>
            <td width="6">
            </td>
            <td width="40">
            </td>
            <td width="3">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="331">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="11" valign="bottom" width="270" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Thirteen
                Weeks Ended</strong></div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="331">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="46">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>April&#160;1,<br>2006</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="46">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>July&#160;1,<br>2006</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="65">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>September&#160;30,<br>2006</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="62" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>December&#160;31,<br>2006</strong></div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="331">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="40" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="40" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="55" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="53">&#160;</td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="331">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Net
                sales</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">4,678.5</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">4,810.2</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="9">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="55">
              <div style="MARGIN: 0pt" align="right">4,069.7</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="53">
              <div style="MARGIN: 0pt" align="right">4,280.5</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="331">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Gross
                profit</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">219.2</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">284.1</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="55">
              <div style="MARGIN: 0pt" align="right">186.8</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="53">
              <div style="MARGIN: 0pt" align="right">237.6</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="331">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Goodwill
                impairment charges</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">2.9</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="55">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="53">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="331">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Loss
                on divestiture of Interior business</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="55">
              <div style="MARGIN: 0pt" align="right">28.7</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="53">
              <div style="MARGIN: 0pt" align="right">607.3</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="331">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Income
                (loss) before cumulative effect of a change in<br>accounting
                principle</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">15.0</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">(6.4</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="55">
              <div style="MARGIN: 0pt" align="right">(74.0</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="53">
              <div style="MARGIN: 0pt" align="right">(645.0</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="331">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Net
                income (loss)</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">17.9</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">(6.4</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="55">
              <div style="MARGIN: 0pt" align="right">(74.0</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="53">
              <div style="MARGIN: 0pt" align="right">(645.0</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="331">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Basic
                net income (loss) per share before cumulative effect<br>of a change in
                accounting accounting principle</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">0.22</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">(0.10</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="55">
              <div style="MARGIN: 0pt" align="right">(1.10</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="53">
              <div style="MARGIN: 0pt" align="right">(8.90</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="331">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Basic
                net income (loss) per share</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">0.27</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">(0.10</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="55">
              <div style="MARGIN: 0pt" align="right">(1.10</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="53">
              <div style="MARGIN: 0pt" align="right">(8.90</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="331">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Diluted
                net income (loss) per share before cumulative effect<br>of a change in
                accounting accounting principle</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">0.22</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">(0.10</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="55">
              <div style="MARGIN: 0pt" align="right">(1.10</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="53">
              <div style="MARGIN: 0pt" align="right">(8.90</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="331">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Diluted
                net income (loss) per share</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">0.26</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">(0.10</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="55">
              <div style="MARGIN: 0pt" align="right">(1.10</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="53">
              <div style="MARGIN: 0pt" align="right">(8.90</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="MARGIN: 0pt"><br></div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="238">
            </td>
            <td width="14">
            </td>
            <td width="5">
            </td>
            <td width="35">
            </td>
            <td width="14">
            </td>
            <td width="5">
            </td>
            <td width="35">
            </td>
            <td width="14">
            </td>
            <td width="5">
            </td>
            <td width="35">
            </td>
            <td width="14">
            </td>
            <td width="6">
            </td>
            <td width="40">
            </td>
            <td width="3">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="318">&#160;</td>
            <td valign="bottom" width="19">&#160;</td>
            <td colspan="11" valign="bottom" width="282" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Thirteen
                Weeks Ended</strong></div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="318">&#160;</td>
            <td valign="bottom" width="19">&#160;</td>
            <td colspan="2" valign="bottom" width="54">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>April&#160;2,<br>2005</strong></div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td colspan="2" valign="bottom" width="54">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>July&#160;2,<br>2005</strong></div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td colspan="2" valign="bottom" width="54">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>October&#160;1,<br>2005</strong></div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td colspan="2" valign="bottom" width="62" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>December&#160;31,<br>2005</strong></div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="318">&#160;</td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="7" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="46" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="7" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="46" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="7" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="46" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="53">&#160;</td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="318">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Net
                sales&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="19">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">4,286.0</div>
            </td>
            <td valign="bottom" width="19">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">4,419.3</div>
            </td>
            <td valign="bottom" width="19">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">3,986.6</div>
            </td>
            <td valign="bottom" width="19">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="53">
              <div style="MARGIN: 0pt" align="right">4,397.3</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="318">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Gross
                profit</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">199.9</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">220.8</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">86.4</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="53">
              <div style="MARGIN: 0pt" align="right">228.9</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="318">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Goodwill
                impairment charges</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">670.0</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="53">
              <div style="MARGIN: 0pt" align="right">342.8</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="318">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Net
                income (loss)</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">15.6</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">(44.4</div>
            </td>
            <td valign="bottom" width="19">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">(750.1</div>
            </td>
            <td valign="bottom" width="19">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="53">
              <div style="MARGIN: 0pt" align="right">(602.6</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="318">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Basic
                net income (loss) per share</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">0.23</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">(0.66</div>
            </td>
            <td valign="bottom" width="19">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">(11.17</div>
            </td>
            <td valign="bottom" width="19">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="53">
              <div style="MARGIN: 0pt" align="right">(8.97</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="318">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Diluted
                net income (loss) per share</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">0.23</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">(0.66</div>
            </td>
            <td valign="bottom" width="19">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">(11.17</div>
            </td>
            <td valign="bottom" width="19">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="53">
              <div style="MARGIN: 0pt" align="right">(8.97</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>(16) Accounting
      Pronouncements</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 11pt">Inventory
      Costs &#8212; The FASB issued SFAS No. 151, &#8220;Inventory Costs &#8212; an amendment of ARB No.
      43, Chapter 4.&#8221; This statement clarifies the requirement that abnormal
      inventory-related costs be recognized as current-period charges and requires
      that the allocation of fixed production overheads to inventory conversion costs
      be based on the normal capacity of the production facilities. The provisions
      of
      this statement are to be applied prospectively to inventory costs incurred
      during fiscal years beginning after June&#160;15, 2005. The effects of adoption
      were not significant. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 11pt">Nonmonetary
      Assets &#8212; The FASB issued SFAS No. 153, &#8220;Exchanges of Nonmonetary Assets &#8212; an
      amendment of APB Opinion No. 29.&#8221; APB Opinion No. 29, in general, requires the
      use of fair value as the measurement basis for exchanges of nonmonetary assets.
      This statement eliminates the exception to the fair value measurement principle
      for nonmonetary exchanges of similar productive assets and replaces it with
      a
      general exception for nonmonetary asset exchanges that lack commercial
      substance. The provisions of this statement are to be applied prospectively
      to
      nonmonetary asset exchanges occurring in fiscal periods beginning after
      June&#160;15, 2005. The effects of adoption were not significant. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 11pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-54</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
</div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt" align="center"><strong>LEAR CORPORATION AND
      SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>(16) Accounting
      Pronouncements &#8211; (continued)</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Financial
      Instruments &#8212; The FASB issued SFAS No. 155, &#8220;Accounting for Certain Hybrid
      Financial Instruments &#8212; an amendment of FASB Statements No. 133 and 140.&#8221; This
      statement resolves issues related to the application of SFAS No. 133,
&#8220;Accounting for Derivative Instruments and Hedging Activities,&#8221; to beneficial
      interests in securitized assets. The provisions of this statement are to be
      applied prospectively to all financial instruments acquired or issued during
      fiscal years beginning after September&#160;15, 2006. The Company is currently
      evaluating the provisions of this statement but does not expect the effects
      of
      adoption to be significant. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The FASB
      issued SFAS No. 156, &#8220;Accounting for Servicing of Financial Assets &#8212; an
      amendment of FASB Statement No. 140.&#8221; This statement requires that all servicing
      assets and liabilities be initially measured at fair value. The provisions
      of
      this statement are to be applied prospectively to all servicing transactions
      beginning after September&#160;15, 2006. The effects of adoption were not
      significant. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Fair
      Value Measurements &#8212; The FASB issued SFAS No. 157, &#8220;Fair Value Measurements.&#8221;
This statement defines fair value, establishes a framework for measuring fair
      value and expands disclosures about fair value measurements. The provisions
      of
      this statement are to generally be applied prospectively in fiscal years
      beginning after November&#160;15, 2007. The Company is currently evaluating the
      impact of this statement on its financial statements. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Pension
      and Other Postretirement Benefits &#8212; The FASB issued SFAS No. 158, &#8220;Employers&#8217;
Accounting for Defined Benefit Pension and Other Postretirement Plans &#8212; an
      amendment of FASB Statements No. 87, 88, 106 and 132(R).&#8221; The Company adopted
      the funded status recognition provisions of SFAS No. 158 as of December&#160;31,
      2006. For a discussion of the effects of adopting the recognition provisions
      of
      SFAS No. 158, see Note 10, &#8220;Pension and Other Postretirement Benefit Plans.&#8221;
</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">This
      statement also requires the measurement of defined benefit plan asset and
      liabilities as of the annual balance sheet date. Currently, the Company measures
      its plan assets and liabilities using an early measurement date of
      September&#160;30, as allowed by the original provisions of SFAS No. 87,
&#8220;Employers&#8217; Accounting for Pensions,&#8221; and SFAS No. 106, &#8220;Employers&#8217; Accounting
      for Postretirement Benefits Other Than Pensions.&#8221; The measurement date
      provisions of SFAS No. 158 are effective for fiscal years ending after
      December&#160;15, 2008. The Company is currently evaluating the measurement date
      provisions of this statement. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Income
      Taxes &#8212; The FASB issued Interpretation (&#8220;FIN&#8221;) No. 48, &#8220;Accounting for
      Uncertainty in Income Taxes &#8212; an interpretation of FASB Statement No. 109.&#8221; FIN
      48 clarifies the accounting for uncertainty in income taxes by establishing
      minimum standards for the recognition and measurement of tax positions taken
      or
      expected to be taken in a tax return. Under the requirements of FIN 48, the
      Company must review all of its uncertain tax positions and make a determination
      as to whether its position is more-likely-than-not to be sustained upon
      examination by regulatory authorities. If a position meets the
      more-likely-than-not criterion, then the related tax benefit is measured based
      on the cumulative probability analysis of the amount that is
      more-likely-than-not to be realized upon ultimate settlement. FIN 48 is
      effective for fiscal years beginning after December&#160;15, 2006. The
      cumulative impact of the initial adoption of FIN 48 will be reported as an
      adjustment to the Company&#8217;s beginning retained deficit balance in 2007. The
      Company is currently evaluating the impact of this interpretation on its
      financial statements. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Financial
      Statement Reporting &#8212; The SEC issued Staff Accounting Bulletin (&#8220;SAB&#8221;) No. 108.
      SAB 108 provides interpretive guidance on how the effects of the carryover
      or
      reversal of prior year misstatements should be considered in quantifying a
      current year misstatement. The interpretive guidance is effective for financial
      statements covering fiscal years ending after November&#160;15, 2006. The effect
      of adoption was not significant. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-55</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
</div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt" align="center"><strong>LEAR CORPORATION AND
      SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>(17) Subsequent
      Event</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">On
      February&#160;9, 2007, the Company entered into an Agreement and Plan of Merger
      (the &#8220;Merger Agreement&#8221;) with AREP Car Holdings Corp., a Delaware corporation
      (&#8220;Parent&#8221;), and AREP Car Acquisition Corp., a Delaware corporation and a wholly
      owned subsidiary of Parent (&#8220;Merger Sub&#8221;). Under the terms of the Merger
      Agreement, Merger Sub would be merged with and into the Company, and as a
      result, the Company would continue as the surviving corporation and a wholly
      owned subsidiary of Parent. Parent and Merger Sub are affiliates of Carl C.
      Icahn. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Pursuant
      to the Merger Agreement, as of the effective time of the merger, each issued
      and
      outstanding share of common stock of the Company, other than shares (i) owned
      by
      Parent, Merger Sub or any subsidiary of Parent and (ii) owned by any
      shareholders who are entitled to and who properly exercise appraisal rights
      under Delaware law, will be canceled and automatically converted into the right
      to receive $36.00 in cash, without interest. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      Merger Agreement contains provisions pursuant to which the Company may solicit
      alternative acquisition proposals for forty-five days after the date of the
      Merger Agreement (the &#8220;Solicitation Period&#8221;) and receive unsolicited proposals
      thereafter. The Company may terminate the Merger Agreement under certain
      circumstances, including if its board of directors determines in good faith
      that
      it has received a Superior Proposal (as defined in the Merger Agreement) and
      otherwise complies with certain terms of the Merger Agreement. In connection
      with such termination, and in certain other limited circumstances, the Company
      would be required to pay a fee of $85.2&#160;million to Parent plus up to
      $15.0&#160;million of Parent&#8217;s out-of-pocket expenses (including fees and
      expenses of financing sources, counsel, accountants, investment bankers, experts
      and consultants) relating to the Merger Agreement. If such termination is to
      accept a Superior Proposal prior to the end of the Solicitation Period, the
      Company would be required to pay a fee of $73.5&#160;million to Parent plus up
      to $6.0&#160;million of Parent&#8217;s out-of-pocket expenses. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Parent
      has obtained debt financing commitments for the transaction contemplated by
      the
      Merger Agreement. Consummation of the merger is not subject to a financing
      condition, but is subject to other conditions, including receipt of the
      affirmative vote of the holders of a majority of the outstanding shares of
      the
      Company&#8217;s common stock, antitrust approvals and other customary closing
      conditions. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">In
      connection with the execution of the Merger Agreement, the Company entered
      into
      a voting agreement with Icahn Partners LP, Icahn Partners Master Fund LP, Koala
      Holding LLC and High River Limited Partnership. In the aggregate, such holders
      beneficially own approximately 15% of the Company&#8217;s outstanding common stock.
      Pursuant to the voting agreement, such holders agreed to vote in favor of the
      merger and, subject to certain exceptions, not to dispose of any shares of
      common stock prior to consummation of the merger. Such holders have also agreed
      to vote in favor of a Superior Proposal under certain circumstances. In
      addition, American Real Estate Partners, L.P. has provided a limited guaranty
      in
      favor of the Company with respect to the performance by Parent and Merger Sub
      of
      certain payment obligations under the Merger Agreement. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">For
      further information regarding the Merger Agreement, please refer to the Merger
      Agreement and certain related documents which are incorporated by reference
      as
      exhibits to this Report. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-56</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
</div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt" align="center"><strong>LEAR CORPORATION AND
      SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 6.65pt"><strong>(18) Supplemental
      Guarantor Condensed Consolidating Financial Statements</strong></div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="201">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="30">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="34">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="34">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="38">
            </td>
            <td width="12">
            </td>
            <td width="6">
            </td>
            <td width="38">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="269">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="14" valign="bottom" width="338" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>December&#160;31,
                2006</strong></div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="269">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Parent</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="53" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Guarantors</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="53" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Non-<br>Guarantors</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="58" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Eliminations</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="59" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Consolidated</strong></div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="269">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="14" valign="bottom" width="338">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center">(in
                millions)</div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="269">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt" align="center"><strong>ASSETS</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="46">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="269">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt"><strong>Current
                Assets:</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="46">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="269">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Cash
                and cash equivalents</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">195.8</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">4.0</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">302.9</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">502.7</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="269">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Accounts
                receivable</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">12.7</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">243.5</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">1,750.7</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">2,006.9</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="269">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Inventories</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">15.2</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">136.9</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">429.4</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">581.5</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="269">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Current
                assets of business held for sale</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">77.1</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">217.1</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">133.6</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">427.8</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="269">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Other</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">45.9</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="45" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">29.9</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">295.6</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="51" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">371.4</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="269">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Total
                current assets</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">346.7</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="45" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">631.4</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">2,912.2</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="51" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">3,890.3</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="269">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt"><strong>Long-Term
                Assets:</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="46">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="269">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Property,
                plant and equipment, net</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">230.9</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">284.1</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">956.7</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">1,471.7</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="269">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Goodwill,
                net</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">454.5</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">551.1</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">991.1</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">1,996.7</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="269">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Investments
                in subsidiaries</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">3,691.2</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">3,257.4</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">(6,948.6</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="269">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Other</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">233.7</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="45" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">24.1</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">234.0</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="51" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">491.8</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="269">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Total
                long-term assets</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">4,610.3</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="45" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">4,116.7</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">2,181.8</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(6,948.6</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="51" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">3,960.2</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="269">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="40" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">4,957.0</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="45" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">4,748.1</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="46" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">5,094.0</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="50" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">(6,948.6</div>
            </td>
            <td valign="bottom" width="16" style="border-bottom: #ccffcc 3pt double;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="51" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">7,850.5</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="269">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="46">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="269">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt" align="center"><strong>LIABILITIES
                AND STOCKHOLDERS&#8217;
EQUITY</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="46">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="269">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt"><strong>Current
                Liabilities:</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="46">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="269">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Short-term
                borrowings</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">39.3</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">39.3</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="269">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Accounts
                payable and drafts</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">157.0</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">395.7</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">1,764.7</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">2,317.4</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="269">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Other
                accrued liabilities</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">322.3</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">145.8</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">631.2</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">1,099.3</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="269">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Current
                liabilities of business held for sale</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">60.4</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">226.1</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">119.2</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">405.7</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="269">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Current
                portion of long-term debt</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">6.0</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="45" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">19.6</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="51" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">25.6</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="269">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Total
                current liabilities</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">545.7</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="45" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">767.6</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">2,574.0</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="51" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">3,887.3</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="269">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt"><strong>Long-Term
                Liabilities:</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="46">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="269">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Long-term
                debt</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">2,413.2</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">21.3</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">2,434.5</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="269">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Long-term
                liabilities of business held for sale</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">0.1</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">48.4</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">48.5</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="269">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Intercompany
                accounts, net</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">1,193.7</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">503.1</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">(1,696.8</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="269">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Other</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">202.4</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="45" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">176.5</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">499.3</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="51" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">878.2</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="269">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Total
                long-term liabilities</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">3,809.3</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="45" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">679.7</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(1,127.8</div>
            </td>
            <td valign="bottom" width="16" style="border-bottom: white 0.5pt solid;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="51" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">3,361.2</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="269">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt"><strong>Stockholders&#8217;
                Equity</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">602.0</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="45" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">3,300.8</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">3,647.8</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(6,948.6</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="51" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">602.0</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="269">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="40" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">4,957.0</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="45" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">4,748.1</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="46" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">5,094.0</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="50" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">(6,948.6</div>
            </td>
            <td valign="bottom" width="16" style="border-bottom: white 3pt double;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="51" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">7,850.5</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-57</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
        <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
</div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt" align="center"><strong>LEAR CORPORATION AND
      SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 6.65pt"><strong>(18) Supplemental
      Guarantor Condensed Consolidating Financial Statements &#8211;
(continued)</strong></div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="201">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="30">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="34">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="34">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="38">
            </td>
            <td width="12">
            </td>
            <td width="6">
            </td>
            <td width="38">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="269">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="14" valign="bottom" width="338" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>December&#160;31,
                2005</strong></div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="269">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Parent</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="53" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Guarantors</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="53" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Non-<br>Guarantors</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="58" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Eliminations</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="59" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Consolidated</strong></div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="269">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="14" valign="bottom" width="338">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center">(in
                millions)</div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="269">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="center"><strong>ASSETS</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="46">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="269">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt"><strong>Current
                Assets:</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="46">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="269">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Cash
                and cash equivalents</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">$</div>
            </td>
            <td valign="bottom" width="40">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">38.6</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">$</div>
            </td>
            <td valign="bottom" width="45">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">4.8</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">$</div>
            </td>
            <td valign="bottom" width="46">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">153.9</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">$</div>
            </td>
            <td valign="bottom" width="50">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">$</div>
            </td>
            <td valign="bottom" width="51">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">197.3</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="269">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Accounts
                receivable</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">46.1</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">208.7</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">1,745.3</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">2,000.1</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="269">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Inventories</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">24.6</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">176.9</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">394.1</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">595.6</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="269">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Current
                assets of business held for sale</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">228.7</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">264.3</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">114.7</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">607.7</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="269">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Other</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">151.4</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="45" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">68.5</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">225.8</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="51" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">445.7</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="269">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Total
                current assets</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">489.4</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="45" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">723.2</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">2,633.8</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="51" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">3,846.4</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="269">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt"><strong>Long-Term
                Assets</strong>:</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="46">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="269">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Property,
                plant and equipment, net</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">216.7</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">479.8</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">918.2</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">1,614.7</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="269">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Goodwill,
                net</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">454.5</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">536.5</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">948.8</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">1,939.8</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="269">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Long-term
                assets of business held for sale</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">108.5</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">267.3</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">109.4</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">485.2</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="269">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Investments
                in subsidiaries</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">3,274.0</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">2,895.0</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">(6,169.0</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">)</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="269">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Other</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">104.9</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="45" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">26.9</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">270.5</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="51" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">402.3</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="269">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Total
                long-term assets</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">4,158.6</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="45" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">4,205.5</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">2,246.9</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">(6,169.0</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">)</div>
            </td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="51" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">4,442.0</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="269">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">$</div>
            </td>
            <td valign="bottom" width="40" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">4,648.0</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">$</div>
            </td>
            <td valign="bottom" width="45" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">4,928.7</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">$</div>
            </td>
            <td valign="bottom" width="46" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">4,880.7</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">$</div>
            </td>
            <td valign="bottom" width="50" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">(6,169.0</div>
            </td>
            <td valign="bottom" width="16" style="border-bottom: white 3pt double;">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">)</div>
            </td>
            <td valign="bottom" width="8" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">$</div>
            </td>
            <td valign="bottom" width="51" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">8,288.4</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="269">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="46">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="269">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="center"><strong>LIABILITIES
                AND STOCKHOLDERS&#8217;
EQUITY</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="46">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="269">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt"><strong>Current
                Liabilities:</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="46">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="269">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Short-term
                borrowings</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">$</div>
            </td>
            <td valign="bottom" width="40">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">$</div>
            </td>
            <td valign="bottom" width="45">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">$</div>
            </td>
            <td valign="bottom" width="46">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">23.4</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">$</div>
            </td>
            <td valign="bottom" width="50">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">$</div>
            </td>
            <td valign="bottom" width="51">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">23.4</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="269">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Accounts
                payable and drafts</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">223.0</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">560.2</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">1,732.8</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">2,516.0</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="269">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Other
                accrued liabilities</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">238.8</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">161.2</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">608.6</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">1,008.6</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="269">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Current
                liabilities of business held for sale</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">169.6</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">275.7</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">104.0</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">549.3</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="269">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Current
                portion of long-term debt</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">2.1</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="45" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">2.1</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">5.2</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="51" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">9.4</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="269">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Total
                current liabilities</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">633.5</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="45" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">999.2</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">2,474.0</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="51" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">4,106.7</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="269">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt"><strong>Long-Term
                Liabilities<i>:</i></strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="46">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="269">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Long-term
                debt</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">2,194.7</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">8.4</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">40.0</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">2,243.1</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="269">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Long-term
                liabilities of business held for sale</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">0.3</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">27.3</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">27.6</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="269">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Intercompany
                accounts, net</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">410.0</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">1,012.5</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">(1,422.5</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">)</div>
            </td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="269">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Other</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">298.8</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="45" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">157.7</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">343.5</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="51" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">800.0</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="269">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Total
                long-term liabilities</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">2,903.5</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="45" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">1,178.9</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">(1,011.7</div>
            </td>
            <td valign="bottom" width="16" style="border-bottom: #ccffcc 0.5pt solid;">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">)</div>
            </td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="51" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">3,070.7</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="269">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt"><strong>Stockholders&#8217;
                Equity</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">1,111.0</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="45" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">2,750.6</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">3,418.4</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">(6,169.0</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">)</div>
            </td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="51" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">1,111.0</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="269">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">$</div>
            </td>
            <td valign="bottom" width="40" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">4,648.0</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">$</div>
            </td>
            <td valign="bottom" width="45" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">4,928.7</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">$</div>
            </td>
            <td valign="bottom" width="46" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">4,880.7</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">$</div>
            </td>
            <td valign="bottom" width="50" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">(6,169.0</div>
            </td>
            <td valign="bottom" width="16" style="border-bottom: #ccffcc 3pt double;">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">)</div>
            </td>
            <td valign="bottom" width="8" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">$</div>
            </td>
            <td valign="bottom" width="51" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt" align="right">8,288.4</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-58</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
</div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt" align="center"><strong>LEAR CORPORATION AND
      SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 6.65pt"><strong>(18) Supplemental
      Guarantor Condensed Consolidating Financial Statements &#8211;
(continued)</strong></div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="195">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="30">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="34">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="35">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="38">
            </td>
            <td width="15">
            </td>
            <td width="5">
            </td>
            <td width="39">
            </td>
            <td width="3">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="260">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="14" valign="bottom" width="342" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>For
                the Year Ended December&#160;31,
                2006</strong></div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="260">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Parent</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="53" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Guarantors</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="53" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Non-<br>Guarantors</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="58" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Eliminations</strong></div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td colspan="2" valign="bottom" width="59" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Consolidated</strong></div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="260">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="14" valign="bottom" width="342">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center">(in
                millions)</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="260">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Net
                sales</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">1,580.3</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">6,889.8</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">12,729.4</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">(3,360.6</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">17,838.9</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="260">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Cost
                of sales</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">1,691.5</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">6,755.6</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">11,824.7</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">(3,360.6</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">16,911.2</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="260">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Selling,
                general and administrative expenses</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">240.5</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">75.0</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">331.2</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">646.7</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="260">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Goodwill
                impairment charges</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">2.9</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">2.9</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="260">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Loss
                on divestiture of Interior business</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">240.4</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">259.6</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">136.0</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">636.0</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="260">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Interest
                (income) expense</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">(114.4</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">126.1</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">198.1</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">209.8</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="260">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Intercompany
                (income) expense, net</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">(281.2</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">77.4</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">203.8</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="260">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Other
                expense, net</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">27.6</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="45" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">48.8</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">9.3</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="52" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">85.7</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="260">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Income
                (loss) before provision (benefit) for<br>income taxes, minority interests
                in<br>consolidated subsidiaries and equity in net<br>(income) loss of
                affiliates and subsidiaries</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">(224.1</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">(455.6</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">26.3</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">(653.4</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="260">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Provision
                (benefit) for income taxes</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">5.4</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">(67.4</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">116.9</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">54.9</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="260">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Minority
                interests in consolidated subsidiaries</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">18.3</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">18.3</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="260">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Equity
                in net (income) loss of affiliates</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">(12.7</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">(5.2</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">1.7</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">(16.2</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="260">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Equity
                in net (income) loss of subsidiaries</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">493.6</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="45" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(80.1</div>
            </td>
            <td valign="bottom" width="16" style="border-bottom: #ccffcc 0.5pt solid;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(413.5</div>
            </td>
            <td valign="bottom" width="21" style="border-bottom: #ccffcc 0.5pt solid;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="52" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="260">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Loss
                before cumulative effect of a change in<br>accounting principle</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">(710.4</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">(302.9</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">(110.6</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">413.5</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">(710.4</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="260">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Cumulative
                effect of a change in accounting<br>principle</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">2.9</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="45" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="52" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">2.9</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="260">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Net
                loss</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="40" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">(707.5</div>
            </td>
            <td valign="bottom" width="16" style="border-bottom: white 3pt double;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="45" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">(302.9</div>
            </td>
            <td valign="bottom" width="16" style="border-bottom: white 3pt double;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="46" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">(110.6</div>
            </td>
            <td valign="bottom" width="16" style="border-bottom: white 3pt double;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="50" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">413.5</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="52" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">(707.5</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: white 3pt double;">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-59</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
</div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt" align="center"><strong>LEAR CORPORATION AND
      SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 6.65pt"><strong>(18) Supplemental
      Guarantor Condensed Consolidating Financial Statements &#8211;
(continued)</strong></div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="191">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="33">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="34">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="35">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="38">
            </td>
            <td width="15">
            </td>
            <td width="5">
            </td>
            <td width="39">
            </td>
            <td width="3">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="255">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="14" valign="bottom" width="347" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>For
                the Year Ended December&#160;31,
                2005</strong></div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="255">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="51" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Parent</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="53" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Guarantors</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="53" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Non-<br>Guarantors</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="58" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Eliminations</strong></div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td colspan="2" valign="bottom" width="59" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Consolidated</strong></div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="255">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="14" valign="bottom" width="347">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center">(in
                millions)</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="255">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Net
                sales</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">1,657.2</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">6,599.0</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">11,350.1</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">(2,517.1</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">17,089.2</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="255">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Cost
                of sales</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">1,727.4</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">6,568.4</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">10,574.5</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">(2,517.1</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">16,353.2</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="255">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Selling,
                general and administrative expenses</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">309.6</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">2.8</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">318.2</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">630.6</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="255">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Goodwill
                impairment charges</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">1,012.8</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">1.012.8</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="255">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Interest
                expense</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">45.9</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">94.2</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">43.1</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">183.2</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="255">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Intercompany
                (income) expense, net</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">(373.7</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">308.2</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">65.5</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="255">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Other
                expense, net</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">6.4</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">19.4</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">12.2</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="52" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">38.0</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="255">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Income
                (loss) before provision (benefit) for<br>income taxes, minority interests
                in consolidated<br>subsidiaries and equity in net (income) loss
                of<br>affiliates and subsidiaries</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">(58.4</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">(1,406.8</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">336.6</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">(1,128.6</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="255">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Provision
                (benefit) for income taxes</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">270.2</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">(140.6</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">64.7</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">194.3</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="255">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Minority
                interests in consolidated subsidiaries</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">7.2</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">7.2</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="255">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Equity
                in net (income) loss of affiliates</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">40.6</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">(3.5</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="46">
              <div style="MARGIN: 0pt" align="right">14.3</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">51.4</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="255">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Equity
                in net (income) loss of subsidiaries</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">1,012.3</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(193.9</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(818.4</div>
            </td>
            <td valign="bottom" width="21" style="border-bottom: white 0.5pt solid;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="52" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="255">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Net
                income (loss)</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="44" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">(1,381.5</div>
            </td>
            <td valign="bottom" width="16" style="border-bottom: #ccffcc 3pt double;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="46" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">(1,068.8</div>
            </td>
            <td valign="bottom" width="16" style="border-bottom: #ccffcc 3pt double;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="46" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">250.4</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="50" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">818.4</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="52" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">(1,381.5</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: #ccffcc 3pt double;">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-60</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
</div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt" align="center"><strong>LEAR CORPORATION AND
      SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 6.65pt"><strong>(18) Supplemental
      Guarantor Condensed Consolidating Financial Statements &#8211;
(continued)</strong></div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="194">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="30">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="34">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="35">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="37">
            </td>
            <td width="15">
            </td>
            <td width="5">
            </td>
            <td width="39">
            </td>
            <td width="3">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="259">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="14" valign="bottom" width="343" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>For
                the Year Ended December&#160;31,
                2004</strong></div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="259">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Parent</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="53" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Guarantors</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="54" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Non-<br>Guarantors</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="58">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Eliminations</strong></div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td colspan="2" valign="bottom" width="59" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Consolidated</strong></div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="259">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="14" valign="bottom" width="343">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center">(in
                millions)</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="259">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Net
                sales</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">1,652.1</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">6,937.7</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="47">
              <div style="MARGIN: 0pt" align="right">10,990.3</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">(2,620.1</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">16,960.0</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="259">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Cost
                of sales</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">1,739.9</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">6,270.1</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="47">
              <div style="MARGIN: 0pt" align="right">10,168.0</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">(2,620.1</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">15,557.9</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="259">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Selling,
                general and administrative expenses</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">205.3</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">129.5</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="47">
              <div style="MARGIN: 0pt" align="right">298.9</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">633.7</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="259">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Interest
                expense</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">30.2</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">100.5</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="47">
              <div style="MARGIN: 0pt" align="right">34.8</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">165.5</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="259">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Intercompany
                (income) expense, net</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">(317.2</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">339.4</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="47">
              <div style="MARGIN: 0pt" align="right">(22.2</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="259">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Other
                (income) expense, net</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(17.8</div>
            </td>
            <td valign="bottom" width="16" style="border-bottom: white 0.5pt solid;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="45" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">29.5</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="47" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">26.9</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="52" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">38.6</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="259">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Income
                before provision (benefit) for income<br>taxes, minority interests in
                consolidated<br>subsidiaries and equity in net (income) loss<br>of
                affiliates and subsidiaries</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">11.7</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">68.7</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="47">
              <div style="MARGIN: 0pt" align="right">483.9</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">564.3</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="259">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Provision
                (benefit) for income taxes</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">(17.9</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">25.1</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="47">
              <div style="MARGIN: 0pt" align="right">120.8</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">128.0</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="259">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Minority
                interests in consolidated subsidiaries</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="47">
              <div style="MARGIN: 0pt" align="right">16.7</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">16.7</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="259">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Equity
                in net (income) loss of affiliates</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">0.3</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">(3.3</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="47">
              <div style="MARGIN: 0pt" align="right">0.4</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">(2.6</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="259">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Equity
                in net income of subsidiaries</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(392.9</div>
            </td>
            <td valign="bottom" width="16" style="border-bottom: #ccffcc 0.5pt solid;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="45" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(305.8</div>
            </td>
            <td valign="bottom" width="16" style="border-bottom: #ccffcc 0.5pt solid;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="47" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">698.7</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="52" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="259">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Net
                income</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="40" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">422.2</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="45" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">352.7</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="47" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">346.0</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="50" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">(698.7</div>
            </td>
            <td valign="bottom" width="21" style="border-bottom: white 3pt double;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="52" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">422.2</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>

      </table>
    </div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-61</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
</div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt" align="center"><strong>LEAR CORPORATION AND
      SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 6.65pt"><strong>(18) Supplemental
      Guarantor Condensed Consolidating Financial Statements &#8211;
(continued)</strong></div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="191">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="33">
            </td>
            <td width="12">
            </td>
            <td width="6">
            </td>
            <td width="33">
            </td>
            <td width="15">
            </td>
            <td width="6">
            </td>
            <td width="33">
            </td>
            <td width="12">
            </td>
            <td width="14">
            </td>
            <td width="29">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="39">
            </td>
            <td width="3">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="255">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="14" valign="bottom" width="347" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>For
                the Year Ended December&#160;31,
                2006</strong></div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="255">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="51" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Parent</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="53" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Guarantors</strong></div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td colspan="2" valign="bottom" width="53" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Non-<br>Guarantors</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="58" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Eliminations</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="59" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Consolidated</strong></div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="255">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="14" valign="bottom" width="347">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center">(in
                millions)</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="255">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt"><strong>Net
                Cash Provided by Operating Activities</strong></div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">28.9</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(102.0</div>
            </td>
            <td valign="bottom" width="21" style="border-bottom: #ccffcc 0.5pt solid;">
              <div style="MARGIN: 0pt">)&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">358.4</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="19" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="38" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">&#8212; </div>
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            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
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            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">
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            <td valign="bottom" width="52" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">285.3</div>
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            <td valign="bottom" width="4">&#160;</td>
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          <tr bgcolor="white">
            <td valign="bottom" width="255" style="border-top: #ffffff 0.5pt solid;">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt"><strong>Cash
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            <td valign="bottom" width="16" style="border-top: #ffffff 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">&#160;</td>
            <td valign="bottom" width="16" style="border-top: #ffffff 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="38">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">&#160;</td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="255">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Additions
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            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">(47.8</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">(94.8</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">(205.0</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="38">
              <div style="MARGIN: 0pt">&#8212; </div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">(347.6</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="255">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Cost
                of acquisitions, net of cash acquired</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">(24.9</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">(5.6</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="38">
              <div style="MARGIN: 0pt">&#8212; </div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">(30.5</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="255">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Net
                proceeds from disposition of businesses and other assets</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(1.4</div>
            </td>
            <td valign="bottom" width="16" style="border-bottom: #ccffcc 0.5pt solid;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">22.5</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">44.8</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="19" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="38" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">&#8212; </div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="52" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">65.9</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="255">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Net
                cash used in investing activities</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(49.2</div>
            </td>
            <td valign="bottom" width="16" style="border-bottom: white 0.5pt solid;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(97.2</div>
            </td>
            <td valign="bottom" width="21" style="border-bottom: white 0.5pt solid;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(165.8</div>
            </td>
            <td valign="bottom" width="16" style="border-bottom: white 0.5pt solid;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="19" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="38" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">&#8212; </div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="52" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(312.2</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: white 0.5pt solid;">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="255">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt"><strong>Cash
                Flows from Financing Activities:</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="38">
              <div style="MARGIN: 0pt">&#160;&#160;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">&#160;</td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="255">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Issuance
                of senior notes</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">900.0</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="38">
              <div style="MARGIN: 0pt">&#8212; </div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">900.0</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="255">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Repayment
                of senior notes</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">(1,356.9</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="38">
              <div style="MARGIN: 0pt">&#8212; </div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">(1,356.9</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="255">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Primary
                credit facility borrowings, net</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">597.0</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="38">
              <div style="MARGIN: 0pt">&#8212; </div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">597.0</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="255">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Other
                long-term debt repayments, net</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">(44.8</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">(10.5</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">18.8</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="38">
              <div style="MARGIN: 0pt">&#8212; </div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">(36.5</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="255">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Short-term
                debt repayments, net</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">(11.8</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="38">
              <div style="MARGIN: 0pt">&#8212; </div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">(11.8</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="255">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Change
                in intercompany accounts</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">(102.0</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">192.6</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">(90.6</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="38">
              <div style="MARGIN: 0pt">&#8212; </div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="255">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Net
                proceeds from the sale of common stock</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">199.2</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="38">
              <div style="MARGIN: 0pt">&#8212; </div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">199.2</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="255">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Dividends
                paid</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">(16.8</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="38">
              <div style="MARGIN: 0pt">&#8212; </div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">(16.8</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="255">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Proceeds
                from exercise of stock options</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">0.2</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="38">
              <div style="MARGIN: 0pt">&#8212; </div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">0.2</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="255">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Increase
                in drafts</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">1.6</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(2.3</div>
            </td>
            <td valign="bottom" width="21" style="border-bottom: #ccffcc 0.5pt solid;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">3.7</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="19" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="38" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">&#8212; </div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="52" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">3.0</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="255">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Net
                cash provided by financing activities</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">177.5</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">179.8</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(79.9</div>
            </td>
            <td valign="bottom" width="16" style="border-bottom: white 0.5pt solid;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="19" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="38" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">&#8212; </div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="52" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">277.4</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="255">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Effect
                of foreign currency translation</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">18.6</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">36.3</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="19" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="38" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">&#8212; </div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="52" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">54.9</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="255">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt"><strong>Net
                Change in Cash and Cash Equivalents</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">157.2</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">(0.8</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">149.0</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="38">
              <div style="MARGIN: 0pt">&#8212; </div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">305.4</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="255">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt"><strong>Cash
                and Cash Equivalents at Beginning of Year</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">38.6</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">4.8</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">153.9</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="19" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="38" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">&#8212; </div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="52" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">197.3</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="255">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt"><strong>Cash
                and Cash Equivalents at End of Year</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="44" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">195.8</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="44" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">4.0</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="44" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">302.9</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="19" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="38" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">&#8212; </div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="52" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">502.7</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>

      </table>
    </div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-62</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
</div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt" align="center"><strong>LEAR CORPORATION AND
      SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 6.65pt"><strong>(18) Supplemental
      Guarantor Condensed Consolidating Financial Statements &#8211;
(continued)</strong></div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="196">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="25">
            </td>
            <td width="15">
            </td>
            <td width="6">
            </td>
            <td width="33">
            </td>
            <td width="15">
            </td>
            <td width="6">
            </td>
            <td width="33">
            </td>
            <td width="12">
            </td>
            <td width="14">
            </td>
            <td width="29">
            </td>
            <td width="12">
            </td>
            <td width="7">
            </td>
            <td width="37">
            </td>
            <td width="3">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="261">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="14" valign="bottom" width="341" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>For
                the Year Ended December&#160;31,
                2005</strong></div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="261">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="41" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Parent</strong></div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td colspan="2" valign="bottom" width="53" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Guarantors</strong></div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td colspan="2" valign="bottom" width="53" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Non-<br>Guarantors</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="58" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Eliminations</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="59" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Consolidated</strong></div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="261">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="14" valign="bottom" width="341">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center">(in
                millions)</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="261">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt"><strong>Net
                Cash Provided by Operating Activities</strong></div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">(260.7</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">(15.8</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">837.3</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="19">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="38">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="9">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">560.8</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="261">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt"><strong>Cash
                Flows from Investing Activities:</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="34">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="38">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="50">&#160;</td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="261">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Additions
                to property, plant and equipment</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">(123.0</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">(235.9</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">(209.5</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="38">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">(568.4</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="261">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Cost
                of acquisitions, net of cash acquired</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">(11.8</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="38">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">(11.8</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="261">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Net
                proceeds from disposition of businesses<br>and other assets</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">7.8</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">16.1</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">9.4</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="38">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">33.3</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="261">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Other,
                net</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="34" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">1.9</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">0.6</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">2.8</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="19" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="38" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">5.3</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="261">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Net
                cash used in investing activities</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="34" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(113.3</div>
            </td>
            <td valign="bottom" width="21" style="border-bottom: #ccffcc 0.5pt solid;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(219.2</div>
            </td>
            <td valign="bottom" width="21" style="border-bottom: #ccffcc 0.5pt solid;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(209.1</div>
            </td>
            <td valign="bottom" width="16" style="border-bottom: #ccffcc 0.5pt solid;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="19" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="38" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(541.6</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: #ccffcc 0.5pt solid;">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="261">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt"><strong>Cash
                Flows from Financing Activities:</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="34">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="38">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="50">&#160;</td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="261">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Repayment
                of senior notes</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">(600.0</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="38">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">(600.0</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="261">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Primary
                credit facility borrowings, net</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">400.0</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="38">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">400.0</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="261">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Other
                long-term debt repayments, net</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">(17.7</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">(2.2</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">(12.8</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="38">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">(32.7</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="261">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Short-term
                debt repayments, net</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">(23.8</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="38">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">(23.8</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="261">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Change
                in intercompany accounts</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">601.1</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">234.5</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">(835.6</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="38">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="261">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Dividends
                paid</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">(67.2</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="38">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">(67.2</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="261">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Proceeds
                from exercise of stock options</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">4.7</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="38">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">4.7</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="261">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Repurchase
                of common stock</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">(25.4</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="38">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">(25.4</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="261">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Decrease
                in drafts</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">(7.1</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">1.5</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">2.3</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="38">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">(3.3</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="261">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Other,
                net</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="34" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">0.7</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="19" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="38" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">0.7</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="261">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Net
                cash used in financing activities</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="34" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">289.1</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">233.8</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(869.9</div>
            </td>
            <td valign="bottom" width="16" style="border-bottom: #ccffcc 0.5pt solid;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="19" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="38" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(347.0</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: #ccffcc 0.5pt solid;">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="261">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Effect
                of foreign currency translation</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="34" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">2.2</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(62.0</div>
            </td>
            <td valign="bottom" width="16" style="border-bottom: white 0.5pt solid;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="19" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="38" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(59.8</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: white 0.5pt solid;">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="261">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt"><strong>Net
                Change in Cash and Cash Equivalents</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">(84.9</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">1.0</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">(303.7</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="38">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">(387.6</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="261">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt"><strong>Cash
                and Cash Equivalents at Beginning<br>of Year</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="34" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">123.5</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">3.8</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">457.6</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="19" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="38" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">584.9</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="261">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt"><strong>Cash
                and Cash Equivalents at End of Year</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="34" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">38.6</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="44" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">4.8</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="44" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">153.9</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="19" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="38" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="50" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">197.3</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>

      </table>
    </div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-63</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
</div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt" align="center"><strong>LEAR CORPORATION AND
      SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 6.65pt"><strong>(18) Supplemental
      Guarantor Condensed Consolidating Financial Statements &#8211;
(continued)</strong></div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="202">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="25">
            </td>
            <td width="12">
            </td>
            <td width="6">
            </td>
            <td width="33">
            </td>
            <td width="12">
            </td>
            <td width="6">
            </td>
            <td width="33">
            </td>
            <td width="12">
            </td>
            <td width="14">
            </td>
            <td width="29">
            </td>
            <td width="12">
            </td>
            <td width="7">
            </td>
            <td width="37">
            </td>
            <td width="3">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="270">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="14" valign="bottom" width="332" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>For
                the Year Ended December&#160;31,
                2004</strong></div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="270">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="41" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Parent</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="53" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Guarantors</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="53" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Non-<br>Guarantors</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="58" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Eliminations</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="59" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Consolidated</strong></div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="270">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="14" valign="bottom" width="332">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center">(in
                millions)</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="270">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt"><strong>Net
                Cash Provided by Operating Activities</strong></div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="34" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">100.6</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">64.6</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">510.7</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="19" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="38" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="9" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">675.9</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="270">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt"><strong>Cash
                Flows from Investing Activities:</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="34">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="38">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="50">&#160;</td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="270">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Additions
                to property, plant and equipment</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">(71.6</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">(146.2</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">(211.2</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="38">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">(429.0</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="270">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Cost
                of acquisitions, net of cash acquired</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">(14.1</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">(3.3</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">(85.6</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="38">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">(103.0</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="270">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Net
                proceeds from disposition of businesses and<br>other assets</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">15.3</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">13.2</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">27.8</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="38">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">56.3</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="270">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Other,
                net</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="34" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">0.8</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">0.1</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">2.3</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="19" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="38" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">3.2</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="270">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Net
                cash used in investing activities</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="34" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(69.6</div>
            </td>
            <td valign="bottom" width="16" style="border-bottom: #ccffcc 0.5pt solid;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(136.2</div>
            </td>
            <td valign="bottom" width="16" style="border-bottom: #ccffcc 0.5pt solid;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(266.7</div>
            </td>
            <td valign="bottom" width="16" style="border-bottom: #ccffcc 0.5pt solid;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="19" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="38" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(472.5</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: #ccffcc 0.5pt solid;">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="270">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt"><strong>Cash
                Flows from Financing Activities:</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="34">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="38">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="50">&#160;</td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="270">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Issuance
                of senior notes</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">399.2</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="38">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">399.2</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="270">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Other
                long-term debt repayments, net</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">(11.4</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">1.0</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">(39.0</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="38">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">(49.4</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="270">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Short-term
                debt repayments, net</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">(0.3</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">(0.1</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">(29.4</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="38">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">(29.8</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="270">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Change
                in intercompany accounts</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">(189.1</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">66.2</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">122.9</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="38">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="270">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Dividends
                paid</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">(68.0</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="38">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">(68.0</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="270">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Proceeds
                from exercise of stock options</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">24.4</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="38">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">24.4</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="270">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Repurchase
                of common stock</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">(97.7</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="38">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">(97.7</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="270">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Decrease
                in drafts</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="34" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(6.1</div>
            </td>
            <td valign="bottom" width="16" style="border-bottom: white 0.5pt solid;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(5.3</div>
            </td>
            <td valign="bottom" width="16" style="border-bottom: white 0.5pt solid;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(1.2</div>
            </td>
            <td valign="bottom" width="16" style="border-bottom: white 0.5pt solid;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="19" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="38" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(12.6</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: white 0.5pt solid;">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="270">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Net
                cash provided by financing activities</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="34" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">51.0</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">61.8</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">53.3</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="19" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="38" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">166.1</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="270">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Effect
                of foreign currency translation</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="34" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">4.5</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">41.6</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="19" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="38" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">46.1</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="270">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt"><strong>Net
                Change in Cash and Cash Equivalents</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">82.0</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">(5.3</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">338.9</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="38">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">415.6</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="270">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt"><strong>Cash
                and Cash Equivalents at Beginning<br>of Year</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="34" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">41.5</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">9.1</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">118.7</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="19" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="38" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">169.3</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="270">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt"><strong>Cash
                and Cash Equivalents at End of Year</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="34" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">123.5</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="44" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">3.8</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="44" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">457.6</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="19" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="38" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="50" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">584.9</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>

      </table>
    </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Basis
      of
      Presentation &#8212; Certain of the Company&#8217;s wholly owned subsidiaries (the
&#8220;Guarantors&#8221;) have unconditionally fully guaranteed, on a joint and several
      basis, the punctual payment when due, whether at stated maturity, by
      acceleration or otherwise, of all of the Company&#8217;s obligations under the New
      Credit Agreement and the indentures governing the Company&#8217;s senior notes,
      including the Company&#8217;s obligations to pay principal, premium, if any, and
      interest with respect to the senior notes. The senior notes consist of
      $300&#160;million aggregate principal amount of 8.50% senior notes due 2013,
      $600&#160;million aggregate principal amount of 8.75% senior notes due 2016,
      $399&#160;million aggregate principal amount of 5.75% senior notes due 2014,
      $4&#160;million aggregate principal amount of zero-coupon convertible senior
      notes due 2022, Euro 56&#160;million aggregate principal amount of 8.125% senior
      notes due 2008 and $41&#160;million aggregate principal amount of 8.11% senior
      notes due 2009. The Guarantors under the indentures are currently Lear
      Automotive Dearborn, Inc., Lear Automotive (EEDS) Spain S.L., Lear Corporation
      EEDS and Interiors, Lear Corporation (Germany) Ltd., Lear Corporation Mexico,
      S.
      de R.L. de C.V., Lear Operations Corporation and Lear Seating Holdings Corp.
      #50. Lear Automotive Dearborn, Inc. became a Guarantor under the indentures
      effective April&#160;25, 2006. In lieu of providing separate audited financial
      statements for the Guarantors, the Company has included the audited supplemental
      guarantor condensed consolidating financial statements above. These financial
      statements reflect the guarantors listed above for all periods presented.
      Management does not believe that separate financial statements of the Guarantors
      are material to investors. Therefore, separate financial statements and other
      disclosures concerning the Guarantors are not presented. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">As of
      and
      for the years ended December&#160;31, 2005 and 2004, the supplemental guarantor
      condensed consolidating financial statements have been restated to reflect
      certain changes to the equity investments of the guarantor subsidiaries. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Distributions
      &#8212; There are no significant restrictions on the ability of the Guarantors to make
      distributions to the Company. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-64</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
</div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt" align="center"><strong>LEAR CORPORATION AND
      SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 6.65pt"><strong>(18) Supplemental
      Guarantor Condensed Consolidating Financial Statements &#8211;
(continued)</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Selling,
      General and Administrative Expenses &#8212; During 2006, 2005 and 2004, the Parent
      allocated $50.0&#160;million, $62.3&#160;million and $63.3&#160;million,
      respectively, of corporate selling, general and administrative expenses to
      its
      operating subsidiaries. The allocations were based on various factors, which
      estimate usage of particular corporate functions, and in certain instances,
      other relevant factors, such as the revenues or the number of employees of
      the
      Company&#8217;s subsidiaries. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 6.65pt; TEXT-INDENT: 18pt">Long-Term
      Debt of the Parent and the Guarantors &#8212; A summary of long-term debt of the
      Parent and the Guarantors on a combined basis is shown below (in millions):
      </div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="367">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="30">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="30">
            </td>
            <td width="3">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="489">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td colspan="5" valign="bottom" width="112" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>December&#160;31,</strong></div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="489">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td colspan="2" valign="bottom" width="47">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2006</strong></div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td colspan="2" valign="bottom" width="47" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2005</strong></div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="489">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="41" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="41">&#160;</td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="489">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Amended
                and restated primary credit
                facility&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="41">
              <div style="MARGIN: 0pt" align="right">997.0</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="41">
              <div style="MARGIN: 0pt" align="right">400.0</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="489">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Senior
                notes</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="41">
              <div style="MARGIN: 0pt" align="right">1,417.6</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="41">
              <div style="MARGIN: 0pt" align="right">1,795.0</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="489">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Other
                long-term debt</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="41" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">4.6</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="41" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">12.3</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="489">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="41">
              <div style="MARGIN: 0pt" align="right">2,419.2</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="41">
              <div style="MARGIN: 0pt" align="right">2,207.3</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="489">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Less
                &#8212; current portion</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="41" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(6.0</div>
            </td>
            <td valign="bottom" width="17" style="border-bottom: #ccffcc 0.5pt solid;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="41" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(4.2</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: #ccffcc 0.5pt solid;">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="489">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="41" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">2,413.2</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="41" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">2,203.1</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>

      </table>
    </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      obligations of foreign subsidiary borrowers under the New Credit Agreement
      are
      guaranteed by the Parent. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">For a
      more detailed description of the above indebtedness, see Note 8, &#8220;Long-Term
      Debt.&#8221; </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 6.65pt; TEXT-INDENT: 18pt">The
      aggregate minimum principal payment requirements on long-term debt of the Parent
      and the Guarantors, including capital lease obligations, in each of the five
      years subsequent to December&#160;31, 2006, are shown below (in millions):
</div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="418">
            </td>
            <td width="12">
            </td>
            <td width="8">
            </td>
            <td width="28">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="557" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt"><strong>Year</strong></div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td colspan="2" valign="bottom" width="49" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Maturities</strong></div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="557">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="11">&#160;</td>
            <td valign="bottom" width="38">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="557">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">2007&#160;&#160;
&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="11">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="38">
              <div style="MARGIN: 0pt" align="right">6.0</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="557">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">2008</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="11">&#160;</td>
            <td valign="bottom" width="38">
              <div style="MARGIN: 0pt" align="right">79.3</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="557">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">2009</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="11">&#160;</td>
            <td valign="bottom" width="38">
              <div style="MARGIN: 0pt" align="right">47.2</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="557">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">2010</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="11">&#160;</td>
            <td valign="bottom" width="38">
              <div style="MARGIN: 0pt" align="right">6.0</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="557">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">2011</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="11">&#160;</td>
            <td valign="bottom" width="38">
              <div style="MARGIN: 0pt" align="right">6.0</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt" align="center"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-65</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
</div>
    <div style="MARGIN: 0pt"><br></div>

<div style="MARGIN: 0pt" align="center"><strong><a name="f10"></a>LEAR CORPORATION
  AND SUBSIDIARIES </strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 6.65pt" align="center"><strong>SCHEDULE
      II &#8212; VALUATION AND QUALIFYING
      ACCOUNTS</strong></div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="222">
            </td>
            <td width="12">
            </td>
            <td width="6">
            </td>
            <td width="28">
            </td>
            <td width="12">
            </td>
            <td width="6">
            </td>
            <td width="27">
            </td>
            <td width="12">
            </td>
            <td width="6">
            </td>
            <td width="35">
            </td>
            <td width="16">
            </td>
            <td width="5">
            </td>
            <td width="24">
            </td>
            <td width="16">
            </td>
            <td width="6">
            </td>
            <td width="26">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="296">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Balance<br>as
                of<br>Beginning<br>of
                Year</strong></div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td colspan="2" valign="bottom" width="45" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Additions</strong></div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td colspan="2" valign="bottom" width="56" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Retirements</strong></div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td colspan="2" valign="bottom" width="39" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Other<br>Changes</strong></div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td colspan="2" valign="bottom" width="43" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Balance<br>as
                of End<br>of Year</strong></div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="296">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="14" valign="bottom" width="309">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center">(in
                millions)</div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="296">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">FOR
                THE YEAR ENDED DECEMBER&#160;31, 2006:</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="38">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="37">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="47">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="32">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="35">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="296">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Valuation
                of accounts deducted from related assets:</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="38">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="37">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="47">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="32">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="35">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="296">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 30pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Allowance
                for doubtful accounts</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="38">
              <div style="MARGIN: 0pt" align="right">20.4</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="37">
              <div style="MARGIN: 0pt" align="right">7.7</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="9">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="47">
              <div style="MARGIN: 0pt" align="right">(12.2</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="32">
              <div style="MARGIN: 0pt" align="right">(1.0</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">14.9</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="296">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 30pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Reserve
                for unmerchantable inventories</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="38">
              <div style="MARGIN: 0pt" align="right">85.7</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="37">
              <div style="MARGIN: 0pt" align="right">28.4</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="47">
              <div style="MARGIN: 0pt" align="right">(23.3</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="32">
              <div style="MARGIN: 0pt" align="right">(3.7</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">87.1</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="296">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 30pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Restructuring
                reserves</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="38">
              <div style="MARGIN: 0pt" align="right">25.5</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="37">
              <div style="MARGIN: 0pt" align="right">92.3</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="47">
              <div style="MARGIN: 0pt" align="right">(75.9</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="32">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">41.9</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="296">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 30pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Allowance
                for deferred tax assets</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="38" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">478.3</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="37" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">364.6</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="9" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="47" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(28.4</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="32" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">29.4</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="35" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">843.9</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="296">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="38" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">609.9</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="37" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">493.0</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="9" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="47" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">(139.8</div>
            </td>
            <td valign="bottom" width="21" style="border-bottom: #ccffcc 3pt double;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="32" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">24.7</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="35" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">987.8</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="296">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="38">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="37">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="47">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="32">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="35">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="296">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">FOR
                THE YEAR ENDED DECEMBER&#160;31, 2005:</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="38">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="37">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="47">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="32">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="35">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="296">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Valuation
                of accounts deducted from related assets:</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="38">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="37">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="47">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="32">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="35">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="296">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 30pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Allowance
                for doubtful accounts</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="38">
              <div style="MARGIN: 0pt" align="right">26.7</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="8">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="37">
              <div style="MARGIN: 0pt" align="right">12.5</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="9">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="47">
              <div style="MARGIN: 0pt" align="right">(15.8</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="32">
              <div style="MARGIN: 0pt" align="right">(3.0</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">20.4</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="296">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 30pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Reserve
                for unmerchantable inventories</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="38">
              <div style="MARGIN: 0pt" align="right">86.4</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="37">
              <div style="MARGIN: 0pt" align="right">33.8</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="47">
              <div style="MARGIN: 0pt" align="right">(23.3</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="32">
              <div style="MARGIN: 0pt" align="right">(11.2</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">85.7</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="296">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 30pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Restructuring
                reserves</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="38">
              <div style="MARGIN: 0pt" align="right">20.9</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="37">
              <div style="MARGIN: 0pt" align="right">86.8</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="47">
              <div style="MARGIN: 0pt" align="right">(80.3</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="32">
              <div style="MARGIN: 0pt" align="right">(1.9</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">25.5</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="296">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 30pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Allowance
                for deferred tax assets</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="38" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">277.7</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="37" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">276.3</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="9" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="47" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(44.5</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="32" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(31.2</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="35" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">478.3</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="296">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="38" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">411.7</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="37" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">409.4</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="9" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="47" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">(163.9</div>
            </td>
            <td valign="bottom" width="21" style="border-bottom: #ccffcc 3pt double;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="32" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">(47.3</div>
            </td>
            <td valign="bottom" width="21" style="border-bottom: #ccffcc 3pt double;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="35" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">609.9</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="296">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="38">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="37">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="47">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="32">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="35">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="296">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">FOR
                THE YEAR ENDED DECEMBER&#160;31, 2004:</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="38">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="37">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="47">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="32">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="35">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="296">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Valuation
                of accounts deducted from related assets:</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="38">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="37">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="47">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="32">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="35">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="296">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 30pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Allowance
                for doubtful accounts</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="38">
              <div style="MARGIN: 0pt" align="right">30.6</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="8">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="37">
              <div style="MARGIN: 0pt" align="right">11.7</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="9">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="47">
              <div style="MARGIN: 0pt" align="right">(16.0</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="32">
              <div style="MARGIN: 0pt" align="right">0.4</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">26.7</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="296">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 30pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Reserve
                for unmerchantable inventories</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="38">
              <div style="MARGIN: 0pt" align="right">55.8</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="37">
              <div style="MARGIN: 0pt" align="right">45.5</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="47">
              <div style="MARGIN: 0pt" align="right">(16.0</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="32">
              <div style="MARGIN: 0pt" align="right">1.1</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">86.4</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="296">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 30pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Restructuring
                reserves</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="38">
              <div style="MARGIN: 0pt" align="right">8.1</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="37">
              <div style="MARGIN: 0pt" align="right">18.8</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="47">
              <div style="MARGIN: 0pt" align="right">(6.0</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="32">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="35">
              <div style="MARGIN: 0pt" align="right">20.9</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="296">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 30pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Allowance
                for deferred tax assets</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="38" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">220.8</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="37" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">84.4</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="9" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="47" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(27.5</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="32" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="35" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">277.7</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="296">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="38" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">315.3</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="37" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">160.4</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="9" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="47" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">(65.5</div>
            </td>
            <td valign="bottom" width="21" style="border-bottom: #ccffcc 3pt double;">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="32" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">1.5</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="35" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">411.7</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt" align="center"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-66</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
</div>
    <div style="MARGIN: 0pt"><br></div>

<div style="MARGIN: 0pt" align="center"><strong><a name="f11"></a>LEAR CORPORATION
  AND SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 16pt; MARGIN-BOTTOM: 8pt" align="center"><strong>CONDENSED
      CONSOLIDATED BALANCE SHEETS</strong></div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="343">
            </td>
            <td width="13">
            </td>
            <td width="5">
            </td>
            <td width="35">
            </td>
            <td width="13">
            </td>
            <td width="7">
            </td>
            <td width="44">
            </td>
            <td width="3">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="458">&#160;</td>
            <td valign="bottom" width="18">&#160;</td>
            <td colspan="2" valign="bottom" width="54" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>March
                31,<br>2007</strong></div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td colspan="2" valign="bottom" width="69" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>December
                31,<br>2006</strong></div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: #ffffff 0.5pt solid;">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="458">&#160;</td>
            <td valign="bottom" width="18">&#160;</td>
            <td colspan="2" valign="bottom" width="54">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center">(unaudited)</div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td colspan="2" valign="bottom" width="69">&#160;</td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="458">&#160;</td>
            <td valign="bottom" width="18">&#160;</td>
            <td colspan="5" valign="bottom" width="142">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center">(in
                millions, except share data)</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="458">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt" align="center"><strong>ASSETS</strong></div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
            <td valign="bottom" width="47">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
            <td valign="bottom" width="9">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
            <td valign="bottom" width="59">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="458">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">Current
                Assets:</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
            <td valign="bottom" width="47">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
            <td valign="bottom" width="9">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
            <td valign="bottom" width="59">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="458">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Cash
                and cash equivalents</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="47">
              <div style="MARGIN: 0pt" align="right">330.4</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="9">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="59">
              <div style="MARGIN: 0pt" align="right">502.7</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="458">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Accounts
                receivable</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="47">
              <div style="MARGIN: 0pt" align="right">2,412.7</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="9">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="59">
              <div style="MARGIN: 0pt" align="right">2,006.9</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="458">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Inventories</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="47">
              <div style="MARGIN: 0pt" align="right">599.0</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="9">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="59">
              <div style="MARGIN: 0pt" align="right">581.5</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="458">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Current
                assets of business held for sale</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="47">
              <div style="MARGIN: 0pt" align="right">38.3</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="9">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="59">
              <div style="MARGIN: 0pt" align="right">427.8</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="458">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Other</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="47" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">317.6</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="9" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="59" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">371.4</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: #ccffcc 0.5pt solid;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="458">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 30pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Total
                current assets</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="47" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">3,698.0</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="9" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="59" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">3,890.3</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: white 0.5pt solid;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="458">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Long-Term
                Assets:</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
            <td valign="bottom" width="47">&#160;</td>
            <td valign="bottom" width="18">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
            <td valign="bottom" width="9">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
            <td valign="bottom" width="59">&#160;</td>
            <td valign="bottom" width="4">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="458">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Property,
                plant and equipment, net</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="47">
              <div style="MARGIN: 0pt" align="right">1,425.9</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="9">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="59">
              <div style="MARGIN: 0pt" align="right">1,471.7</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="458">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Goodwill,
                net</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="47">
              <div style="MARGIN: 0pt" align="right">2,006.6</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="9">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="59">
              <div style="MARGIN: 0pt" align="right">1,996.7</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="458">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Other</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="47" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">530.5</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="9" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="59" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">491.8</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: white 0.5pt solid;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="458">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 30pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Total
                long-term assets</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="47" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">3,963.0</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="9" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="59" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">3,960.2</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="458">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="47" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">7,661.0</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="9" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="59" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">7,850.5</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: white 0.5pt solid;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="458">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt" align="center"><strong>LIABILITIES
                AND STOCKHOLDERS&#8217;
EQUITY</strong></div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
            <td valign="bottom" width="47">&#160;</td>
            <td valign="bottom" width="18">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
            <td valign="bottom" width="9">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
            <td valign="bottom" width="59">&#160;</td>
            <td valign="bottom" width="4">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="458">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">Current
                Liabilities:</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
            <td valign="bottom" width="47">&#160;</td>
            <td valign="bottom" width="18">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
            <td valign="bottom" width="9">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
            <td valign="bottom" width="59">&#160;</td>
            <td valign="bottom" width="4">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="458">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Short-term
                borrowings</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="47">
              <div style="MARGIN: 0pt" align="right">11.5</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="9">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="59">
              <div style="MARGIN: 0pt" align="right">39.3</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="458">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Accounts
                payable and drafts</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="47">
              <div style="MARGIN: 0pt" align="right">2,480.3</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="9">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="59">
              <div style="MARGIN: 0pt" align="right">2,317.4</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="458">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Accrued
                liabilities</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="47">
              <div style="MARGIN: 0pt" align="right">1,152.8</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="9">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="59">
              <div style="MARGIN: 0pt" align="right">1,099.3</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="458">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Current
                liabilities of business held for
                sale&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="47">
              <div style="MARGIN: 0pt" align="right">16.7</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="9">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="59">
              <div style="MARGIN: 0pt" align="right">405.7</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="458">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Current
                portion of long-term debt</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="47" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">26.4</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="9" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="59" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">25.6</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="458">
              <div style="PADDING-LEFT: 30pt; MARGIN: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Total
                current liabilities</div>
            </td>
            <td valign="bottom" width="18">
              <div style="PADDING-LEFT: 18pt; MARGIN: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">
              <div style="PADDING-LEFT: 18pt; MARGIN: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
            <td valign="bottom" width="47" style="border-bottom: #000000 0.5pt solid;">
              <div style="PADDING-LEFT: 18pt; MARGIN: 0pt; TEXT-INDENT: -18pt" align="right">3,687.7</div>
            </td>
            <td valign="bottom" width="18">
              <div style="PADDING-LEFT: 18pt; MARGIN: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
            <td valign="bottom" width="9" style="border-bottom: #000000 0.5pt solid;">
              <div style="PADDING-LEFT: 18pt; MARGIN: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
            <td valign="bottom" width="59" style="border-bottom: #000000 0.5pt solid;">
              <div style="PADDING-LEFT: 18pt; MARGIN: 0pt; TEXT-INDENT: -18pt" align="right">3,887.3</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: white 3pt double;">
              <div style="PADDING-LEFT: 18pt; MARGIN: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="458">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">Long-Term
                Liabilities:</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
            <td valign="bottom" width="47">&#160;</td>
            <td valign="bottom" width="18">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
            <td valign="bottom" width="9">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
            <td valign="bottom" width="59">&#160;</td>
            <td valign="bottom" width="4">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="458">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Long-term
                debt</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="47">
              <div style="MARGIN: 0pt" align="right">2,431.8</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="9">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="59">
              <div style="MARGIN: 0pt" align="right">2,434.5</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="458">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Long-term
                liabilities of business held for sale</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="47">
              <div style="MARGIN: 0pt" align="right">21.6</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="9">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="59">
              <div style="MARGIN: 0pt" align="right">48.5</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="458">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Other</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="47" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">827.4</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="9" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="59" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">878.2</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: white 0.5pt solid;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="458">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 30pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Total
                long-term liabilities</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="47" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">3,280.8</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="9" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="59" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">3,361.2</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: #ccffcc 0.5pt solid;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="458">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">Stockholders&#8217;
                Equity:</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
            <td valign="bottom" width="47">&#160;</td>
            <td valign="bottom" width="18">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
            <td valign="bottom" width="9">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
            <td valign="bottom" width="59">&#160;</td>
            <td valign="bottom" width="4">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="458">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Common
                stock, $0.01 par value, 150,000,000 shares authorized;<br>82,166,506
                shares and 81,984,306 shares issued as of March 31, 2007<br>and December
                31, 2006, respectively</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="47">
              <div style="MARGIN: 0pt" align="right">0.7</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="9">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="59">
              <div style="MARGIN: 0pt" align="right">0.7</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="458">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Additional
                paid-in capital</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="47">
              <div style="MARGIN: 0pt" align="right">1,357.3</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="9">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="59">
              <div style="MARGIN: 0pt" align="right">1,338.1</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="458">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Common
                stock held in treasury, 5,508,097 shares as of March 31, 2007,
                and<br>5,732,316 shares as of December 31, 2006, at cost</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="47">
              <div style="MARGIN: 0pt" align="right">(201.9</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="9">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="59">
              <div style="MARGIN: 0pt" align="right">(210.2</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="458">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Retained
                deficit</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="47">
              <div style="MARGIN: 0pt" align="right">(308.0</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="9">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="59">
              <div style="MARGIN: 0pt" align="right">(362.5</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="458">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Accumulated
                other comprehensive loss</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="47" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(155.6</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="9" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="59" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(164.1</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: #ccffcc 0.5pt solid;">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="458">
              <div style="PADDING-LEFT: 30pt; MARGIN: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Total
                stockholders&#8217; equity</div>
            </td>
            <td valign="bottom" width="18">
              <div style="PADDING-LEFT: 18pt; MARGIN: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">
              <div style="PADDING-LEFT: 18pt; MARGIN: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
            <td valign="bottom" width="47" style="border-bottom: #000000 0.5pt solid;">
              <div style="PADDING-LEFT: 18pt; MARGIN: 0pt; TEXT-INDENT: -18pt" align="right">692.5</div>
            </td>
            <td valign="bottom" width="18">
              <div style="PADDING-LEFT: 18pt; MARGIN: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
            <td valign="bottom" width="9" style="border-bottom: #000000 0.5pt solid;">
              <div style="PADDING-LEFT: 18pt; MARGIN: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
            <td valign="bottom" width="59" style="border-bottom: #000000 0.5pt solid;">
              <div style="PADDING-LEFT: 18pt; MARGIN: 0pt; TEXT-INDENT: -18pt" align="right">602.0</div>
            </td>
            <td valign="bottom" width="4">
              <div style="PADDING-LEFT: 18pt; MARGIN: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="458">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="7" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="47" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">7,661.0</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="9" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="59" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">7,850.5</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: #ccffcc 3pt double;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="MARGIN: 0pt" align="center"><br></div>
    <div style="MARGIN: 0pt" align="center"><br><br></div>
    <div style="MARGIN: 0pt" align="center"><i>The accompanying notes are an integral
      part of these condensed consolidated balance sheets.</i></div>
    <div style="MARGIN-TOP: 5pt; MARGIN-BOTTOM: 0pt" align="center">F-67</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
</div>
    <div style="MARGIN: 0pt"><br></div>

<div style="MARGIN: 0pt" align="center"><strong><a name="f12"></a>LEAR CORPORATION
  AND SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 6.65pt" align="center"><strong>CONDENSED
      CONSOLIDATED STATEMENTS OF INCOME</strong></div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="368">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="30">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="30">
            </td>
            <td width="3">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="491">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="5" valign="bottom" width="111" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Three
                Months Ended</strong></div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="491">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="47" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>March
                31,<br>2007</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="47" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>April
                1,<br>2006</strong></div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: #ffffff 0.5pt solid;">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="491">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="5" valign="bottom" width="111">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center">(unaudited;
                in millions,<br>except per share data)</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="491">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Net
                sales</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">4,406.1</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">4,678.5</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="491">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">Cost
                of sales</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
            <td valign="bottom" width="40">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt" align="right">4,095.2</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
            <td valign="bottom" width="40">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt" align="right">4,459.3</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="491">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Selling,
                general and administrative expenses</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">126.5</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">165.0</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="491">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Loss
                on divestiture of Interior business</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">25.6</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="491">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Interest
                expense</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">51.5</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">47.7</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="491">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Other
                (income) expense, net</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">25.0</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(8.3</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: white 0.5pt solid;">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="491">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Income
                before provision (benefit) for income taxes and cumulative effect
                of
                a<br>change in accounting principle</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
            <td valign="bottom" width="40">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt" align="right">82.3</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
            <td valign="bottom" width="40">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt" align="right">14.8</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="491">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Provision
                (benefit) for income taxes</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">32.4</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(0.2</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: white 0.5pt solid;">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="491">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Income
                before cumulative effect of a change in accounting
                principle&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="16">
              <div style="PADDING-LEFT: 18pt; MARGIN: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="PADDING-LEFT: 18pt; MARGIN: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
            <td valign="bottom" width="40">
              <div style="PADDING-LEFT: 18pt; MARGIN: 0pt; TEXT-INDENT: -18pt" align="right">49.9</div>
            </td>
            <td valign="bottom" width="16">
              <div style="PADDING-LEFT: 18pt; MARGIN: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="PADDING-LEFT: 18pt; MARGIN: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
            <td valign="bottom" width="40">
              <div style="PADDING-LEFT: 18pt; MARGIN: 0pt; TEXT-INDENT: -18pt" align="right">15.0</div>
            </td>
            <td valign="bottom" width="4">
              <div style="PADDING-LEFT: 18pt; MARGIN: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="491">
              <div style="MARGIN-TOP: 1.65pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 10pt">Cumulative
                effect of a change in accounting principle</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="40" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="40" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">2.9</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: white 3pt double;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="491">
              <div style="PADDING-LEFT: 18pt; MARGIN: 0pt; TEXT-INDENT: -18pt">Net
                income</div>
            </td>
            <td valign="bottom" width="16">
              <div style="PADDING-LEFT: 18pt; MARGIN: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">
              <div style="PADDING-LEFT: 18pt; MARGIN: 0pt; TEXT-INDENT: -18pt">$</div>
            </td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="PADDING-LEFT: 18pt; MARGIN: 0pt; TEXT-INDENT: -18pt" align="right">49.9</div>
            </td>
            <td valign="bottom" width="16">
              <div style="PADDING-LEFT: 18pt; MARGIN: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">
              <div style="PADDING-LEFT: 18pt; MARGIN: 0pt; TEXT-INDENT: -18pt">$</div>
            </td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="PADDING-LEFT: 18pt; MARGIN: 0pt; TEXT-INDENT: -18pt" align="right">17.9</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: #ccffcc 0.5pt solid;">
              <div style="PADDING-LEFT: 18pt; MARGIN: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="491">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Basic
                net income per share:</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="40">&#160;</td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="40">&#160;</td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="491">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Income
                before cumulative effect of a change in accounting principle</div>
            </td>
            <td valign="bottom" width="16">
              <div style="PADDING-LEFT: 18pt; MARGIN: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="PADDING-LEFT: 18pt; MARGIN: 0pt; TEXT-INDENT: -18pt">$</div>
            </td>
            <td valign="bottom" width="40">
              <div style="PADDING-LEFT: 18pt; MARGIN: 0pt; TEXT-INDENT: -18pt" align="right">0.65</div>
            </td>
            <td valign="bottom" width="16">
              <div style="PADDING-LEFT: 18pt; MARGIN: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="PADDING-LEFT: 18pt; MARGIN: 0pt; TEXT-INDENT: -18pt">$</div>
            </td>
            <td valign="bottom" width="40">
              <div style="PADDING-LEFT: 18pt; MARGIN: 0pt; TEXT-INDENT: -18pt" align="right">0.22</div>
            </td>
            <td valign="bottom" width="4">
              <div style="PADDING-LEFT: 18pt; MARGIN: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="491">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Cumulative
                effect of a change in accounting principle</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">0.05</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="491">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Basic
                net income per share</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="40" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">0.65</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="40" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">0.27</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: #ccffcc 3pt double;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="491">
              <div style="PADDING-LEFT: 6pt; MARGIN: 0pt; TEXT-INDENT: -6pt">Diluted
                net
                income per share:</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="40">&#160;</td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="40">&#160;</td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="491">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Income
                before cumulative effect of a change in accounting principle</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">0.64</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">0.22</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="491">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Cumulative
                effect of a change in accounting principle</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">0.04</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="491">
              <div style="PADDING-LEFT: 18pt; MARGIN: 0pt; TEXT-INDENT: -18pt">Diluted
                net income per share</div>
            </td>
            <td valign="bottom" width="16">
              <div style="PADDING-LEFT: 18pt; MARGIN: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="PADDING-LEFT: 18pt; MARGIN: 0pt; TEXT-INDENT: -18pt">$</div>
            </td>
            <td valign="bottom" width="40" style="border-bottom: #000000 3pt double;">
              <div style="PADDING-LEFT: 18pt; MARGIN: 0pt; TEXT-INDENT: -18pt" align="right">0.64</div>
            </td>
            <td valign="bottom" width="16">
              <div style="PADDING-LEFT: 18pt; MARGIN: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="PADDING-LEFT: 18pt; MARGIN: 0pt; TEXT-INDENT: -18pt">$</div>
            </td>
            <td valign="bottom" width="40" style="border-bottom: #000000 3pt double;">
              <div style="PADDING-LEFT: 18pt; MARGIN: 0pt; TEXT-INDENT: -18pt" align="right">0.26</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: #ccffcc 3pt double;">
              <div style="PADDING-LEFT: 18pt; MARGIN: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="MARGIN: 0pt" align="center"><br></div>
    <div style="MARGIN: 0pt" align="center"><br><br></div>
    <div style="MARGIN: 0pt" align="center"><i>The accompanying notes are an integral
      part of these condensed consolidated statements.</i></div>
    <div style="MARGIN-TOP: 5pt; MARGIN-BOTTOM: 0pt" align="center">F-68</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
</div>
    <div style="MARGIN: 0pt"><br></div>

<div style="MARGIN: 0pt" align="center"><strong><a name="f13"></a>LEAR CORPORATION
  AND SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 5pt" align="center"><strong>CONDENSED
      CONSOLIDATED STATEMENTS OF CASH
      FLOWS</strong></div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="350">
            </td>
            <td width="15">
            </td>
            <td width="7">
            </td>
            <td width="36">
            </td>
            <td width="15">
            </td>
            <td width="6">
            </td>
            <td width="32">
            </td>
            <td width="4">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="467">&#160;</td>
            <td valign="bottom" width="20">&#160;</td>
            <td colspan="5" valign="bottom" width="130" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Three
                Months Ended</strong></div>
            </td>
            <td valign="bottom" width="5">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="467">&#160;</td>
            <td valign="bottom" width="20">&#160;</td>
            <td colspan="2" valign="bottom" width="58" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>March
                31,<br>2007</strong></div>
            </td>
            <td valign="bottom" width="20">&#160;</td>
            <td colspan="2" valign="bottom" width="51" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>April
                1,<br>2006</strong></div>
            </td>
            <td valign="bottom" width="5">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="467">&#160;</td>
            <td valign="bottom" width="20">&#160;</td>
            <td colspan="5" valign="bottom" width="130">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center">(unaudited;
                in millions)</div>
            </td>
            <td valign="bottom" width="5">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="467">
              <div style="MARGIN: 0pt"><strong>Cash Flows from Operating
                Activities:</strong></div>
            </td>
            <td valign="bottom" width="20">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="9">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="49">
              <div style="MARGIN: 0pt" align="right">&#160;</div>
            </td>
            <td valign="bottom" width="20">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="43">
              <div style="MARGIN: 0pt" align="right">&#160;</div>
            </td>
            <td valign="bottom" width="5">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="467">
              <div style="MARGIN: 0pt">Net income</div>
            </td>
            <td valign="bottom" width="20">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="9">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="49">
              <div style="MARGIN: 0pt" align="right">49.9</div>
            </td>
            <td valign="bottom" width="20">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="43">
              <div style="MARGIN: 0pt" align="right">17.9</div>
            </td>
            <td valign="bottom" width="5">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="467">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6.3pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Adjustments
                to reconcile net income to net cash provided by (used in)<br>operating
                activities:</div>
            </td>
            <td valign="bottom" width="20">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="9">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="49">&#160;</td>
            <td valign="bottom" width="20">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="43">&#160;</td>
            <td valign="bottom" width="5">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="467">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Cumulative
                effect of a change in accounting principle</div>
            </td>
            <td valign="bottom" width="20">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="9">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="49">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="20">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="43">
              <div style="MARGIN: 0pt" align="right">(2.9</div>
            </td>
            <td valign="bottom" width="5">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="467">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Loss
                on divestiture of Interior business</div>
            </td>
            <td valign="bottom" width="20">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="9">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="49">
              <div style="MARGIN: 0pt" align="right">25.6</div>
            </td>
            <td valign="bottom" width="20">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="43">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="5">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="467">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Depreciation
                and amortization</div>
            </td>
            <td valign="bottom" width="20">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="9">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="49">
              <div style="MARGIN: 0pt" align="right">74.5</div>
            </td>
            <td valign="bottom" width="20">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="43">
              <div style="MARGIN: 0pt" align="right">97.8</div>
            </td>
            <td valign="bottom" width="5">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="467">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Net
                change in recoverable customer engineering and tooling</div>
            </td>
            <td valign="bottom" width="20">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="9">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="49">
              <div style="MARGIN: 0pt" align="right">23.8</div>
            </td>
            <td valign="bottom" width="20">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="43">
              <div style="MARGIN: 0pt" align="right">128.6</div>
            </td>
            <td valign="bottom" width="5">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="467">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Net
                change in working capital items</div>
            </td>
            <td valign="bottom" width="20">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="9">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="49">
              <div style="MARGIN: 0pt" align="right">(150.4</div>
            </td>
            <td valign="bottom" width="20">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="43">
              <div style="MARGIN: 0pt" align="right">(235.8</div>
            </td>
            <td valign="bottom" width="5">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="467">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Net
                change in sold accounts receivable</div>
            </td>
            <td valign="bottom" width="20">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="9">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="49">
              <div style="MARGIN: 0pt" align="right">(38.9</div>
            </td>
            <td valign="bottom" width="20">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="43">
              <div style="MARGIN: 0pt" align="right">38.1</div>
            </td>
            <td valign="bottom" width="5">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="467">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Other,
                net</div>
            </td>
            <td valign="bottom" width="20">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="9" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="49" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(26.3</div>
            </td>
            <td valign="bottom" width="20">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="43" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(4.3</div>
            </td>
            <td valign="bottom" width="5" style="border-bottom: #ccffcc 0.5pt solid;">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="467">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 30pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Net
                cash provided by (used in) operating activities</div>
            </td>
            <td valign="bottom" width="20">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="9" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="49" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(41.8</div>
            </td>
            <td valign="bottom" width="20">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="43" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">39.4</div>
            </td>
            <td valign="bottom" width="5" style="border-bottom: white 0.5pt solid;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="467">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt"><strong>Cash
                Flows from Investing Activities:</strong></div>
            </td>
            <td valign="bottom" width="20">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
            <td valign="bottom" width="9">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
            <td valign="bottom" width="49">&#160;</td>
            <td valign="bottom" width="20">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
            <td valign="bottom" width="43">&#160;</td>
            <td valign="bottom" width="5">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="467">
              <div style="MARGIN: 0pt">Additions to property, plant and
                equipment</div>
            </td>
            <td valign="bottom" width="20">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="9">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="49">
              <div style="MARGIN: 0pt" align="right">(29.2</div>
            </td>
            <td valign="bottom" width="20">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="43">
              <div style="MARGIN: 0pt" align="right">(92.6</div>
            </td>
            <td valign="bottom" width="5">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="467">
              <div style="MARGIN: 0pt">Divestiture of Interior business</div>
            </td>
            <td valign="bottom" width="20">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="9">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="49">
              <div style="MARGIN: 0pt" align="right">(57.3</div>
            </td>
            <td valign="bottom" width="20">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="43">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="5">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="467">
              <div style="MARGIN: 0pt">Other, net</div>
            </td>
            <td valign="bottom" width="20">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="9" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="49" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(28.6</div>
            </td>
            <td valign="bottom" width="20">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="43" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">27.9</div>
            </td>
            <td valign="bottom" width="5" style="border-bottom: white 0.5pt solid;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="467">
              <div style="PADDING-LEFT: 23.85pt; MARGIN: 0pt">Net cash used in investing
                activities</div>
            </td>
            <td valign="bottom" width="20">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="9" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="49" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(115.1</div>
            </td>
            <td valign="bottom" width="20">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="43" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(64.7</div>
            </td>
            <td valign="bottom" width="5" style="border-bottom: #ccffcc 0.5pt solid;">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="467">
              <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt"><strong>Cash
                Flows
                from Financing Activities:</strong></div>
            </td>
            <td valign="bottom" width="20">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="9">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="49">&#160;</td>
            <td valign="bottom" width="20">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="43">&#160;</td>
            <td valign="bottom" width="5">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="467">
              <div style="MARGIN: 0pt">Long-term debt repayments, net</div>
            </td>
            <td valign="bottom" width="20">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="9">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="49">
              <div style="MARGIN: 0pt" align="right">(3.6</div>
            </td>
            <td valign="bottom" width="20">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="43">
              <div style="MARGIN: 0pt" align="right">(6.1</div>
            </td>
            <td valign="bottom" width="5">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="467">
              <div style="MARGIN: 0pt">Short-term debt repayments, net</div>
            </td>
            <td valign="bottom" width="20">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="9">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="49">
              <div style="MARGIN: 0pt" align="right">(11.0</div>
            </td>
            <td valign="bottom" width="20">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="43">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="5">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="467">
              <div style="MARGIN: 0pt">Dividends paid</div>
            </td>
            <td valign="bottom" width="20">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="9">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="49">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="20">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="43">
              <div style="MARGIN: 0pt" align="right">(16.8</div>
            </td>
            <td valign="bottom" width="5">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="467">
              <div style="MARGIN: 0pt">Proceeds from exercise of stock options</div>
            </td>
            <td valign="bottom" width="20">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="9">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="49">
              <div style="MARGIN: 0pt" align="right">5.7</div>
            </td>
            <td valign="bottom" width="20">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="43">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="5">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="467">
              <div style="MARGIN: 0pt">Increase (decrease) in drafts</div>
            </td>
            <td valign="bottom" width="20">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="9" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="49" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(13.5</div>
            </td>
            <td valign="bottom" width="20">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="43" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">1.1</div>
            </td>
            <td valign="bottom" width="5" style="border-bottom: #ccffcc 0.5pt solid;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="467">
              <div style="PADDING-LEFT: 23.85pt; MARGIN: 0pt">Net cash used in financing
                activities</div>
            </td>
            <td valign="bottom" width="20">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="9" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="49" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(22.4</div>
            </td>
            <td valign="bottom" width="20">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="43" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(21.8</div>
            </td>
            <td valign="bottom" width="5" style="border-bottom: white 0.5pt solid;">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="467">
              <div style="MARGIN: 0pt">Effect of foreign currency translation</div>
            </td>
            <td valign="bottom" width="20">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="9" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="49" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">7.0</div>
            </td>
            <td valign="bottom" width="20">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="43" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">10.7</div>
            </td>
            <td valign="bottom" width="5" style="border-bottom: #ccffcc 0.5pt solid;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="467">
              <div style="PADDING-LEFT: 18pt; MARGIN: 0pt; TEXT-INDENT: -18pt"><strong>Net
                Change in Cash and Cash Equivalents</strong></div>
            </td>
            <td valign="bottom" width="20">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
            <td valign="bottom" width="9">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
            <td valign="bottom" width="49">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt" align="right">(172.3</div>
            </td>
            <td valign="bottom" width="20">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">)</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
            <td valign="bottom" width="43">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt" align="right">(36.4</div>
            </td>
            <td valign="bottom" width="5">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="467">
              <div style="MARGIN: 0pt"><strong>Cash and Cash Equivalents as of
                Beginning
                of Period</strong></div>
            </td>
            <td valign="bottom" width="20">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="9" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="49" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">502.7</div>
            </td>
            <td valign="bottom" width="20">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="43" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">207.6</div>
            </td>
            <td valign="bottom" width="5">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="467">
              <div style="PADDING-LEFT: 18pt; MARGIN: 0pt; TEXT-INDENT: -18pt"><strong>Cash
                and Cash Equivalents as of End of Period</strong></div>
            </td>
            <td valign="bottom" width="20">
              <div style="PADDING-LEFT: 18pt; MARGIN: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
            <td valign="bottom" width="9" style="border-bottom: #000000 3pt double;">
              <div style="PADDING-LEFT: 18pt; MARGIN: 0pt; TEXT-INDENT: -18pt">$</div>
            </td>
            <td valign="bottom" width="49" style="border-bottom: #000000 3pt double;">
              <div style="PADDING-LEFT: 18pt; MARGIN: 0pt; TEXT-INDENT: -18pt" align="right">330.4</div>
            </td>
            <td valign="bottom" width="20">
              <div style="PADDING-LEFT: 18pt; MARGIN: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
            <td valign="bottom" width="8" style="border-bottom: #000000 3pt double;">
              <div style="PADDING-LEFT: 18pt; MARGIN: 0pt; TEXT-INDENT: -18pt">$</div>
            </td>
            <td valign="bottom" width="43" style="border-bottom: #000000 3pt double;">
              <div style="PADDING-LEFT: 18pt; MARGIN: 0pt; TEXT-INDENT: -18pt" align="right">171.2</div>
            </td>
            <td valign="bottom" width="5" style="border-bottom: white 3pt double;">
              <div style="PADDING-LEFT: 18pt; MARGIN: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="467">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt"><strong>Changes
                in Working Capital Items:</strong></div>
            </td>
            <td valign="bottom" width="20">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
            <td valign="bottom" width="9">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
            <td valign="bottom" width="49">&#160;</td>
            <td valign="bottom" width="20">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
            <td valign="bottom" width="43">&#160;</td>
            <td valign="bottom" width="5">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="467">
              <div style="MARGIN: 0pt">Accounts receivable</div>
            </td>
            <td valign="bottom" width="20">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="9">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="49">
              <div style="MARGIN: 0pt" align="right">(434.2</div>
            </td>
            <td valign="bottom" width="20">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="43">
              <div style="MARGIN: 0pt" align="right">(428.2</div>
            </td>
            <td valign="bottom" width="5">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="467">
              <div style="MARGIN: 0pt">Inventories</div>
            </td>
            <td valign="bottom" width="20">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="9">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="49">
              <div style="MARGIN: 0pt" align="right">(20.6</div>
            </td>
            <td valign="bottom" width="20">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="43">
              <div style="MARGIN: 0pt" align="right">14.0</div>
            </td>
            <td valign="bottom" width="5">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="467">
              <div style="MARGIN: 0pt">Accounts payable</div>
            </td>
            <td valign="bottom" width="20">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="9">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="49">
              <div style="MARGIN: 0pt" align="right">224.5</div>
            </td>
            <td valign="bottom" width="20">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="43">
              <div style="MARGIN: 0pt" align="right">103.9</div>
            </td>
            <td valign="bottom" width="5">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="467">
              <div style="MARGIN: 0pt">Accrued liabilities and other</div>
            </td>
            <td valign="bottom" width="20">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="9" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="49" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">79.9</div>
            </td>
            <td valign="bottom" width="20">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="43" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">74.5</div>
            </td>
            <td valign="bottom" width="5">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="467">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Net
                change in working capital items</div>
            </td>
            <td valign="bottom" width="20">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="9" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="49" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">(150.4</div>
            </td>
            <td valign="bottom" width="20">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="43" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">(235.8</div>
            </td>
            <td valign="bottom" width="5" style="border-bottom: white 3pt double;">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="467">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt"><strong>Supplementary
                Disclosure:</strong></div>
            </td>
            <td valign="bottom" width="20">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
            <td valign="bottom" width="9">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
            <td valign="bottom" width="49">&#160;</td>
            <td valign="bottom" width="20">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
            <td valign="bottom" width="43">&#160;</td>
            <td valign="bottom" width="5">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="467">
              <div style="MARGIN: 0pt">Cash paid for interest</div>
            </td>
            <td valign="bottom" width="20">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="9" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="49" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">36.9</div>
            </td>
            <td valign="bottom" width="20">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="8" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="43" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">26.6</div>
            </td>
            <td valign="bottom" width="5">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="467">
              <div style="MARGIN: 0pt">Cash paid for income taxes</div>
            </td>
            <td valign="bottom" width="20">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="9" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="49" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">45.7</div>
            </td>
            <td valign="bottom" width="20">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="8" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="43" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">42.9</div>
            </td>
            <td valign="bottom" width="5" style="border-bottom: #ccffcc 3pt double;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="MARGIN: 0pt" align="center"><br><br></div>
    <div style="MARGIN: 0pt" align="center"><i>The accompanying notes are an integral
      part of these condensed consolidated statements.</i></div>
    <div style="MARGIN-TOP: 5pt; MARGIN-BOTTOM: 0pt" align="center">F-69</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
</div>
    <div style="MARGIN: 0pt"><br></div>

<div style="MARGIN: 0pt" align="center"><strong><a name="f14"></a>LEAR CORPORATION
  AND SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong>NOTES
      TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>(1) Basis of
      Presentation</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      condensed consolidated financial statements include the accounts of Lear
      Corporation (&#8220;Lear&#8221; or the &#8220;Parent&#8221;), a Delaware corporation and the wholly
      owned and less than wholly owned subsidiaries controlled by Lear (collectively,
      the &#8220;Company&#8221;). In addition, Lear consolidates variable interest entities in
      which it bears a majority of the risk of the entities&#8217; potential losses or
      stands to gain from a majority of the entities&#8217; expected returns. Investments in
      affiliates in which Lear does not have control, but does have the ability to
      exercise significant influence over operating and financial policies, are
      accounted for under the equity method. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      Company and its affiliates design and manufacture complete automotive seat
      systems, electrical distribution systems and select electronic products. Through
      the first quarter of 2007, the Company also supplied automotive interior systems
      and components, including instrument panels and cockpit systems, headliners
      and
      overhead systems, door panels and flooring and acoustic systems (Note 3,
&#8220;Divestiture of Interior Business&#8221;). The Company&#8217;s main customers are automotive
      original equipment manufacturers. The Company operates facilities
      worldwide.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Certain
      amounts in the prior period&#8217;s financial statements have been reclassified to
      conform to the presentation used in the quarter ended March 31, 2007.</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>(2) Merger
      Agreement</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">On
      February 9, 2007, the Company entered into an Agreement and Plan of Merger
      (the
&#8220;Merger Agreement&#8221;) with AREP Car Holdings Corp., a Delaware corporation
      (&#8220;Parent&#8221;), and AREP Car Acquisition Corp., a Delaware corporation and a wholly
      owned subsidiary of Parent (&#8220;Merger Sub&#8221;). Under the terms of the Merger
      Agreement, Merger Sub would be merged with and into the Company, and as a
      result, the Company would continue as the surviving corporation and a wholly
      owned subsidiary of Parent. Parent and Merger Sub are affiliates of Carl C.
      Icahn.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Pursuant
      to the Merger Agreement, as of the effective time of the merger, each issued
      and
      outstanding share of common stock of the Company, other than shares (i) owned
      by
      Parent, Merger Sub or any subsidiary of Parent and (ii) owned by any
      shareholders who are entitled to and who have properly exercised appraisal
      rights under Delaware law, will be canceled and automatically converted into
      the
      right to receive $36.00 in cash, without interest.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      Merger Agreement contains provisions pursuant to which the Company was permitted
      to solicit alternative acquisition proposals for forty-five days after the
      date
      of the Merger Agreement (the &#8220;Solicitation Period&#8221;) and continue ongoing
      discussions or negotiations thereafter. The Solicitation Period ended on March
      26, 2007, and no alternative acquisition proposals have been received as of
      the
      date of this Report. The Company may terminate the Merger Agreement under
      certain circumstances, including if its board of directors determines in good
      faith that it has received a Superior Proposal (as defined in the Merger
      Agreement) and otherwise complies with certain terms of the Merger Agreement.
      In
      connection with such termination, and in certain other limited circumstances,
      the Company would be required to pay a fee of $85.2 million to Parent plus
      up to
      $15.0 million of Parent&#8217;s out-of-pocket expenses (including fees and expenses of
      financing sources, counsel, accountants, investment bankers, experts and
      consultants) relating to the Merger Agreement. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Parent
      has obtained debt financing commitments for the transaction contemplated by
      the
      Merger Agreement. Consummation of the merger is not subject to a financing
      condition, but is subject to other conditions, including receipt of the
      affirmative vote of the holders of a majority of the outstanding shares of
      the
      Company&#8217;s common stock, antitrust approvals and other customary closing
      conditions. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">In
      connection with the execution of the Merger Agreement, the Company entered
      into
      a voting agreement with Icahn Partners LP, Icahn Partners Master Fund LP, Koala
      Holding Limited Partnership and High River Limited Partnership. In the
      aggregate, such holders beneficially own approximately 16% of the Company&#8217;s
      outstanding common stock. Pursuant to the voting agreement, such holders agreed
      to vote in favor of the merger and, subject to certain exceptions, not to
      dispose of any shares of common stock prior to consummation of the merger.
      Such
      holders have also agreed to vote in favor of a Superior Proposal under certain
      circumstances. In addition, American Real </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-70</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
</div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt" align="center"><strong>LEAR CORPORATION AND
      SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong>NOTES
      TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>(2) Merger Agreement
&#8211;
(continued)</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt">Estate Partners, L.P. has
      provided a limited guaranty in favor of the Company with respect to the
      performance by Parent and Merger Sub of certain payment obligations under the
      Merger Agreement.</div>
    <div style="MARGIN-TOP: 3.35pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 11pt">If
      presented, the transaction contemplated by the Merger Agreement will be voted
      on
      by shareholders of record as of May 14, 2007, at the Company&#8217;s annual
      stockholders&#8217; meeting, which has been scheduled for June 27, 2007.</div>
    <div style="MARGIN-TOP: 3.35pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 11pt">For
      further information regarding the Merger Agreement, please refer to the Merger
      Agreement and certain related documents, which are incorporated by reference
      as
      exhibits to this Report.</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>(3) Divestiture of
      Interior Business</strong></div>
    <div style="MARGIN-TOP: 3.35pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 11pt">On
      March 31, 2007, the Company completed the transfer of substantially all of
      the
      assets of the Company&#8217;s North American interior business (as well as its
      interests in two China joint ventures and $27.4 million of cash) to
      International Automotive Components Group North America, Inc. and International
      Automotive Components Group North America, LLC (together, &#8220;IAC North America&#8221;),
      in exchange for a 25% equity interest in IAC North America and warrants for
      an
      additional 7% of the current outstanding equity of IAC North America. In
      addition, under the terms of the divestiture agreement, the Company has agreed
      to fund up to an additional $40 million to IAC North America, in the event
      that
      IAC North America does not meet certain financial targets in 2007. The legal
      transfer of certain assets included in this transaction is subject to the
      satisfaction of certain post-closing conditions. In connection with this
      transaction, IAC North America assumed the ordinary course liabilities of the
      Company&#8217;s North American interior business, and the Company retained certain
      pre-closing liabilities, including pension and postretirement healthcare
      liabilities incurred through the closing date of the transaction. </div>
    <div style="MARGIN-TOP: 3.35pt; MARGIN-BOTTOM: 6.65pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 11pt">The
      Company recorded a loss on divestiture of interior business of $606.9 million
      in
      the fourth quarter of 2006 and an additional charge of $29.4 million in the
      first quarter of 2007, including $6.2 million recorded as cost of sales, $2.0
      million recorded as selling, general and administrative expenses and $21.2
      million recorded as loss on divestiture of interior business. Approximately
      $22.5 million of the first quarter 2007 charge represented cash costs. As of
      March 31, 2007, the beneficial ownership interests of certain less than wholly
      owned subsidiaries were transferred to IAC North America, however, as described
      above, the transfer of legal ownership is subject to the satisfaction of certain
      post-closing conditions. Accordingly, these assets and liabilities remain
      classified as held for sale on the Company&#8217;s condensed consolidated balance
      sheet as of March 31, 2007. A summary of the major classes of the assets and
      liabilities of the Company&#8217;s North American interior business that are
      classified as held for sale in the Company&#8217;s condensed consolidated balance
      sheets are shown below (in millions):</div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="221">
            </td>
            <td width="12">
            </td>
            <td width="7">
            </td>
            <td width="27">
            </td>
            <td width="12">
            </td>
            <td width="8">
            </td>
            <td width="38">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="295">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>March
                31,<br>2007</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="62" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>December
                31,<br>2006</strong></div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="295">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="36">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="11">&#160;</td>
            <td valign="bottom" width="50">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="295">
              <div style="MARGIN: 0pt">Cash and cash equivalents</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="10">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="36">
              <div style="MARGIN: 0pt" align="right">12.8</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="11">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">19.2</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="295">
              <div style="MARGIN: 0pt">Accounts receivable</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="10">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="36">
              <div style="MARGIN: 0pt" align="right">17.3</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="11">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">284.5</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="295">
              <div style="MARGIN: 0pt">Inventories</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="10">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="36">
              <div style="MARGIN: 0pt" align="right">3.9</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="11">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">69.2</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="295">
              <div style="MARGIN: 0pt">Other current
                assets&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="10" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="36" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">4.3</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="11" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">54.9</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="295">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Current
                assets of business held for sale</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="10" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">$</div>
            </td>
            <td valign="bottom" width="36" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt" align="right">38.3</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
            <td valign="bottom" width="11" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">$</div>
            </td>
            <td valign="bottom" width="50" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt" align="right">427.8</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="295">
              <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt">Accounts payable
                and
                drafts</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="10">
              <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt">$</div>
            </td>
            <td valign="bottom" width="36">
              <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt" align="right">8.4</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="11">
              <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt">$</div>
            </td>
            <td valign="bottom" width="50">
              <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt" align="right">323.7</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="295">
              <div style="MARGIN: 0pt">Accrued liabilities</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="10">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="36">
              <div style="MARGIN: 0pt" align="right">5.4</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="11">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">79.8</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="295">
              <div style="MARGIN: 0pt">Current portion of long-term debt</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="10" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="36" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">2.9</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="11" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">2.2</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="295">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 12.15pt; MARGIN-BOTTOM: 0pt">Current
                liabilities of business held for sale</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="10" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="36" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">16.7</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="11" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="50" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">405.7</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="295">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">Long-term
                debt</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="10">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
            <td valign="bottom" width="36">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt" align="right">18.2</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
            <td valign="bottom" width="11">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
            <td valign="bottom" width="50">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt" align="right">19.6</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="295">
              <div style="MARGIN: 0pt">Other long-term liabilities</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="10" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="36" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">3.4</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="11" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">28.9</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="295">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 12.15pt; MARGIN-BOTTOM: 0pt">Long-term
                liabilities of business held for sale</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="10" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="36" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">21.6</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="11" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">48.5</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="295">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 30pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Total
                liabilities of business held for sale</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="10" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">$</div>
            </td>
            <td valign="bottom" width="36" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt" align="right">38.3</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">&#160;</div>
            </td>
            <td valign="bottom" width="11" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">$</div>
            </td>
            <td valign="bottom" width="50" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt" align="right">454.2</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="MARGIN-TOP: 2.65pt; MARGIN-BOTTOM: 5.35pt; LINE-HEIGHT: 11pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-71</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
</div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN-TOP: 3.35pt; MARGIN-BOTTOM: 6.65pt; LINE-HEIGHT: 11pt"><br><br></div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="221">
            </td>
            <td width="12">
            </td>
            <td width="7">
            </td>
            <td width="27">
            </td>
            <td width="12">
            </td>
            <td width="8">
            </td>
            <td width="38">
            </td>
          </tr>

      </table>
    </div>
    <div style="MARGIN: 0pt" align="center"><strong>LEAR CORPORATION AND
      SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong>NOTES
      TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>(3) Divestiture of
      Interior Business &#8211; (continued)</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      Company did not account for the divestiture of its North American interior
      business as a discontinued operation due to its continuing involvement with
      IAC
      North America. The Company&#8217;s investment in IAC North America is accounted for
      under the equity method of accounting. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      divestiture of the Company&#8217;s North American interior business substantially
      completes the disposition of the Company&#8217;s interior business. On October 16,
      2006, the Company completed the contribution of substantially all of its
      European interior business to International Automotive Components Group, LLC
      (&#8220;IAC Europe&#8221;), in exchange for a one-third equity interest in IAC Europe. In
      connection with this transaction, the Company recorded a loss on divestiture
      of
      interior business of $33.5 million, of which $4.4 million was recorded in the
      first quarter of 2007 and $29.1 million was recorded in 2006.</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>(4) Stock-Based
      Compensation</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">On
      January 1, 2006, the Company adopted the provisions of Statement of Financial
      Accounting Standards (&#8220;SFAS&#8221;) No. 123(R), &#8220;Share-Based Payment,&#8221; using the
      modified prospective transition method and recognized income of $2.9 million
      as
      a cumulative effect of a change in accounting principle related to a change
      in
      accounting for forfeitures. There was no income tax effect resulting from this
      adoption. SFAS No. 123(R) requires the estimation of expected forfeitures at
      the
      grant date and the recognition of compensation cost only for those awards
      expected to vest. Previously, the Company accounted for forfeitures as they
      occurred. In the first quarters of 2007 and 2006, there were no outstanding
      unvested awards for which no compensation cost was recognized as the Company
      adopted the fair value recognition provisions of SFAS No. 123, &#8220;Accounting for
      Stock-Based Compensation,&#8221; for all employee awards granted after January 1,
      2003.</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>(5)
      Restructuring</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">In order
      to address unfavorable industry conditions, the Company began to implement
      consolidation and census actions in the second quarter of 2005. These actions
      are part of a comprehensive restructuring strategy intended to (i) better align
      the Company&#8217;s manufacturing capacity with the changing needs of its customers,
      (ii) eliminate excess capacity and lower the operating costs of the Company
      and
      (iii) streamline the Company&#8217;s organizational structure and reposition its
      business for improved long-term profitability.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      Company currently expects to incur pretax costs of approximately $300 million,
      in connection with the restructuring actions, although all aspects of the
      restructuring actions have not been finalized. Such costs include employee
      termination benefits, asset impairment charges and contract termination costs,
      as well as other incremental costs resulting from the restructuring actions.
      These incremental costs principally include equipment and personnel relocation
      costs. The Company also expects to incur incremental manufacturing inefficiency
      costs at the operating locations impacted by the restructuring actions during
      the related restructuring implementation period. Restructuring costs are
      recognized in the Company&#8217;s consolidated financial statements in accordance with
      accounting principles generally accepted in the United States. Generally,
      charges are recorded as elements of the restructuring strategy are finalized.
      Actual costs recorded in the Company&#8217;s consolidated financial statements may
      vary from current estimates.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">In
      connection with the Company&#8217;s restructuring actions, the Company recorded net
      charges of $13.6 million in the first quarter of 2007, including $11.1 million
      recorded as cost of sales and $2.5 million recorded as selling, general and
      administrative expenses. The first quarter 2007 charges consist of employee
      termination benefits of $24.1 million, fixed asset impairment charges of $0.4
      million, net contract termination costs of $(12.7) million and other costs
      of
      $1.8 million. Employee termination benefits were recorded based on existing
      union and employee contracts, statutory requirements and completed negotiations.
      Asset impairment charges relate to the disposal of machinery and equipment
      with
      carrying values of $0.4 million in excess of related estimated fair values.
      Contract termination costs include lease cancellation costs, the repayment
      of
      various government-sponsored grants and a net pension and other postretirement
      benefit plan curtailment gain of $13.9 million.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-72</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
</div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt" align="center"><strong>LEAR CORPORATION AND
      SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong>NOTES
      TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>(5) Restructuring
&#8211;
(continued)</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 6.65pt; TEXT-INDENT: 18pt">A
      summary of the first quarter 2007 restructuring charges, excluding the net
      pension and other postretirement benefit plan curtailment gain of $13.9 million
      is shown below (in millions):</div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="181">
            </td>
            <td width="13">
            </td>
            <td width="15">
            </td>
            <td width="53">
            </td>
            <td width="13">
            </td>
            <td width="6">
            </td>
            <td width="23">
            </td>
            <td width="13">
            </td>
            <td width="5">
            </td>
            <td width="22">
            </td>
            <td width="16">
            </td>
            <td width="8">
            </td>
            <td width="26">
            </td>
            <td width="13">
            </td>
            <td width="12">
            </td>
            <td width="43">
            </td>
          </tr>
          <tr>
            <td rowspan="2" valign="bottom" width="241">&#160;</td>
            <td rowspan="2" valign="bottom" width="17">&#160;</td>
            <td colspan="2" rowspan="2" valign="bottom" width="91" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Accrual
                as of<br>December 31, 2006</strong></div>
            </td>
            <td rowspan="2" valign="bottom" width="17">&#160;</td>
            <td colspan="2" rowspan="2" valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2007<br>Charges</strong></div>
            </td>
            <td rowspan="2" valign="bottom" width="17">&#160;</td>
            <td colspan="5" valign="bottom" width="104" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>2007<br>Utilization</strong></div>
            </td>
            <td rowspan="2" valign="bottom" width="17">&#160;</td>
            <td colspan="2" rowspan="2" valign="bottom" width="74">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Accrual
                as of<br>March 31, 2007</strong></div>
            </td>
          </tr>
          <tr>
            <td colspan="2" valign="bottom" width="36" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Cash</strong></div>
            </td>
            <td valign="bottom" width="22">&#160;</td>
            <td colspan="2" valign="bottom" width="45" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Non-cash</strong></div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="241">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="20">&#160;</td>
            <td valign="bottom" width="71">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="31">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="29">&#160;</td>
            <td valign="bottom" width="22">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="34">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="16" style="border-top: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="58" style="border-top: #000000 0.5pt solid;">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="241">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Employee
                termination
                benefits&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="20">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="71">
              <div style="MARGIN: 0pt" align="right">36.4</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="31">
              <div style="MARGIN: 0pt" align="right">24.1</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="29">
              <div style="MARGIN: 0pt" align="right">(36.9</div>
            </td>
            <td valign="bottom" width="22">
              <div style="MARGIN: 0pt">)&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="10">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="58">
              <div style="MARGIN: 0pt" align="right">23.6</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="241">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Asset
                impairments</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="20">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="71">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="8">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="31">
              <div style="MARGIN: 0pt" align="right">0.4</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="29">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="22">&#160;</td>
            <td valign="bottom" width="10">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">(0.4</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="58">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="241">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Contract
                termination costs</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="20">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="71">
              <div style="MARGIN: 0pt" align="right">3.4</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="8">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="31">
              <div style="MARGIN: 0pt" align="right">1.2</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="29">
              <div style="MARGIN: 0pt" align="right">(1.4</div>
            </td>
            <td valign="bottom" width="22">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="10">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="58">
              <div style="MARGIN: 0pt" align="right">3.2</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="241">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Other
                related costs</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="20" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="71" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="31" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">1.8</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="29" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(1.8</div>
            </td>
            <td valign="bottom" width="22">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="10" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="34" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="16" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="58" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212; </div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="241">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Total</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="20" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="71" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">39.8</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="31" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">27.5</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="7" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="29" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">(40.1</div>
            </td>
            <td valign="bottom" width="22">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="10" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="34" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">(0.4</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="16" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="58" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">26.8</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>(6)
      Inventories</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Inventories
      are stated at the lower of cost or market. Cost is determined using the
      first-in, first-out method. Finished goods and work-in-process inventories
      include material, labor and manufacturing overhead costs. A summary of
      inventories is shown below (in millions):</div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="229">
            </td>
            <td width="12">
            </td>
            <td width="6">
            </td>
            <td width="28">
            </td>
            <td width="12">
            </td>
            <td width="8">
            </td>
            <td width="38">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="306">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>March
                31,<br>2007</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="62" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>December
                31,<br>2006</strong></div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="306">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="38">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="11">&#160;</td>
            <td valign="bottom" width="50">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="306">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Raw
                materials</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="38">
              <div style="MARGIN: 0pt" align="right">439.9</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="11">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">439.9</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="306">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Work-in-process&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="38">
              <div style="MARGIN: 0pt" align="right">36.2</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="11">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">35.6</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="306">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Finished
                goods</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="38" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">122.9</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="11" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">106.0</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="306">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Inventories</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="38" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">599.0</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="11" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="50" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">581.5</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>(7) Property, Plant
      and Equipment </strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 6.65pt; TEXT-INDENT: 18pt">Property,
      plant and equipment is stated at cost. Depreciable property is depreciated
      over
      the estimated useful lives of the assets, principally using the straight-line
      method. A summary of property, plant and equipment is shown below (in
      millions):</div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="230">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="33">
            </td>
            <td width="12">
            </td>
            <td width="6">
            </td>
            <td width="40">
            </td>
            <td width="3">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="307">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="51" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>March
                31,<br>2007</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="62" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>December
                31,<br>2006</strong></div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="307">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="54">&#160;</td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="307">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Land</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">132.6</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="54">
              <div style="MARGIN: 0pt" align="right">133.5</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="307">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Buildings
                and
                improvements&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">607.5</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="54">
              <div style="MARGIN: 0pt" align="right">559.1</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="307">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Machinery
                and equipment</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">2,024.1</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="54">
              <div style="MARGIN: 0pt" align="right">2,081.3</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="307">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Construction
                in progress</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">22.0</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="54" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">12.0</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: white 0.5pt solid;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="307">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Total
                property, plant and equipment</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">2,786.2</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="54">
              <div style="MARGIN: 0pt" align="right">2,785.9</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="307">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Less
                &#8211; accumulated depreciation</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(1,360.3</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="54" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(1,314.2</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="307">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Net
                property, plant and equipment</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="44" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">1,425.9</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="8" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="54" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">1,471.7</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: #ccffcc 3pt double;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Depreciation
      expense was $73.2 million and $96.6 million in the three months ended March
      31,
      2007 and April 1, 2006, respectively.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Costs
      associated with the repair and maintenance of the Company&#8217;s property, plant and
      equipment are expensed as incurred. Costs associated with improvements which
      extend the life, increase the capacity or improve the efficiency or safety
      of
      the Company&#8217;s property, plant and equipment are capitalized and depreciated over
      the remaining life of the related asset.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-73</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
</div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt" align="center"><strong>LEAR CORPORATION AND
      SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong>NOTES
      TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>(8)
      Goodwill</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 6.65pt; TEXT-INDENT: 18pt">A
      summary of the changes in the carrying amount of goodwill, by reportable
      operating segment, for the three months ended March 31, 2007, is shown below
      (in
      millions):</div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="212">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="30">
            </td>
            <td width="12">
            </td>
            <td width="9">
            </td>
            <td width="40">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="30">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="283">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Seating</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="66" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Electronic
                and<br>Electrical</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Total</strong></div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="283">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="12">&#160;</td>
            <td valign="bottom" width="54">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="283">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Balance
                as of January 1, 2007</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">1,060.7</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="12">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="54">
              <div style="MARGIN: 0pt" align="right">936.0</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">1,996.7</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="283">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Foreign
                currency translation and
                other&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">7.6</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="12" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="54" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">2.3</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">9.9</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="283">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Balance
                as of March 31, 2007</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="40" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">1,068.3</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="12" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="54" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">938.3</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="40" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">2,006.6</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>(9) Long-Term
      Debt</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 6.65pt; TEXT-INDENT: 18pt">A
      summary of long-term debt and the related weighted average interest rates,
      including the effect of hedging activities described in Note 19, &#8220;Financial
      Instruments,&#8221; is shown below (in millions):</div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="227">
            </td>
            <td width="12">
            </td>
            <td width="6">
            </td>
            <td width="36">
            </td>
            <td width="12">
            </td>
            <td width="38">
            </td>
            <td width="14">
            </td>
            <td width="12">
            </td>
            <td width="6">
            </td>
            <td width="36">
            </td>
            <td width="12">
            </td>
            <td width="38">
            </td>
            <td width="14">
            </td>
          </tr>
          <tr>
            <td rowspan="2" valign="bottom" width="303">&#160;</td>
            <td rowspan="2" valign="bottom" width="16">&#160;</td>
            <td colspan="5" valign="bottom" width="143" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>March
                31, 2007</strong></div>
            </td>
            <td rowspan="2" valign="top" width="16">&#160;</td>
            <td colspan="5" valign="bottom" width="143" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>December
                31, 2006</strong></div>
            </td>
          </tr>
          <tr>
            <td colspan="2" valign="bottom" width="56" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Long-Term<br>Debt</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="70" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Weighted<br>Average<br>Interest
                Rate</strong></div>
            </td>
            <td colspan="2" valign="bottom" width="56" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Long-Term<br>Debt</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="70" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Weighted<br>Average<br>Interest
                Rate</strong></div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="303">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="56">
              <div style="MARGIN: 0pt" align="right">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="70">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="top" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="56">
              <div style="MARGIN: 0pt" align="right">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="70">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="303">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Primary
                Credit Facility</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="48">
              <div style="MARGIN: 0pt" align="right">997.0</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">7.49</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">%</div>
            </td>
            <td valign="top" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="48">
              <div style="MARGIN: 0pt" align="right">997.0</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">7.49</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">%</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="303">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">8.50%
                Senior Notes, due 2013</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="48">
              <div style="MARGIN: 0pt" align="right">300.0</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">8.50</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">%</div>
            </td>
            <td valign="top" width="16">&#160;</td>
            <td valign="bottom" width="8">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="48">
              <div style="MARGIN: 0pt" align="right">300.0</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">8.50</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">%</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="303">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">8.75%
                Senior Notes, due 2016</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="48">
              <div style="MARGIN: 0pt" align="right">600.0</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">8.75</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">%</div>
            </td>
            <td valign="top" width="16">&#160;</td>
            <td valign="bottom" width="8">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="48">
              <div style="MARGIN: 0pt" align="right">600.0</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">8.75</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">%</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="303">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">5.75%
                Senior Notes, due 2014</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="48">
              <div style="MARGIN: 0pt" align="right">399.4</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">5.635</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">%</div>
            </td>
            <td valign="top" width="16">&#160;</td>
            <td valign="bottom" width="8">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="48">
              <div style="MARGIN: 0pt" align="right">399.3</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">5.635</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">%</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="303">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">8.125%
                Euro-denominated Senior Notes, due 2008</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="48">
              <div style="MARGIN: 0pt" align="right">74.2</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">8.125</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">%</div>
            </td>
            <td valign="top" width="16">&#160;</td>
            <td valign="bottom" width="8">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="48">
              <div style="MARGIN: 0pt" align="right">73.3</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">8.125</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">%</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="303">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">8.11%
                Senior Notes, due 2009</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="48">
              <div style="MARGIN: 0pt" align="right">41.4</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">8.11</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">%</div>
            </td>
            <td valign="top" width="16">&#160;</td>
            <td valign="bottom" width="8">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="48">
              <div style="MARGIN: 0pt" align="right">41.4</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">8.11</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">%</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="303">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Zero-coupon
                Convertible Senior Notes, due
                2022&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="48">
              <div style="MARGIN: 0pt" align="right">0.7</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">4.75</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">%</div>
            </td>
            <td valign="top" width="16">&#160;</td>
            <td valign="bottom" width="8">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="48">
              <div style="MARGIN: 0pt" align="right">3.6</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">4.75</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">%</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="303">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Other</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="48" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">45.5</div>
            </td>
            <td valign="bottom" width="16" style="border-bottom: white 0.5pt solid;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">7.03</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">%</div>
            </td>
            <td valign="top" width="16">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="48" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">45.5</div>
            </td>
            <td valign="bottom" width="16" style="border-bottom: white 0.5pt solid;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">7.06</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">%</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="303">&#160;</td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="48">
              <div style="MARGIN: 0pt" align="right">2,458.2</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">&#160;</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="top" width="16">&#160;</td>
            <td valign="bottom" width="8">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="48">
              <div style="MARGIN: 0pt" align="right">2,460.1</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="51">&#160;</td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="303">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Current
                portion</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="48" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(26.4</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">&#160;</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="top" width="16">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="48" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(25.6</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="51">&#160;</td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="303">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Long-term
                debt</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="8" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="48" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">2,431.8</div>
            </td>
            <td valign="bottom" width="16" style="border-bottom: #ccffcc 3pt double;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">&#160;</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="top" width="16">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="48" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">2,434.5</div>
            </td>
            <td valign="bottom" width="16" style="border-bottom: #ccffcc 3pt double;">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
            <td valign="bottom" width="51">&#160;</td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">&#160;</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>Primary Credit
      Facility</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      Company&#8217;s Primary Credit Facility consists of an Amended and Restated Credit and
      Guarantee Agreement, which provides for maximum revolving borrowing commitments
      of $1.7 billion and a term loan facility of $1.0 billion. As of March 31, 2007
      and December 31, 2006, the Company had $997.0 million in borrowings outstanding
      under the Primary Credit Facility, all of which were outstanding under the
      term
      loan facility. There were no revolving borrowings outstanding.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      Company&#8217;s obligations under the Primary Credit Facility are secured by a pledge
      of all or a portion of the capital stock of certain of its subsidiaries,
      including substantially all of its first-tier subsidiaries, and are partially
      secured by a security interest in the Company&#8217;s assets and the assets of certain
      of its domestic subsidiaries. In addition, the Company&#8217;s obligations under the
      Primary Credit Facility are guaranteed, on a joint and several basis, by certain
      of its subsidiaries, which are primarily domestic subsidiaries and all of which
      are directly or indirectly 100% owned by the Company.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      Primary Credit Facility contains certain affirmative and negative covenants,
      including (i) limitations on fundamental changes involving the Company or its
      subsidiaries, asset sales and restricted payments, (ii) a limitation on
      indebtedness with a maturity shorter than the term loan facility, (iii) a
      limitation on aggregate subsidiary indebtedness to an amount which is no more
      than 4% of consolidated total assets, (iv) a limitation on aggregate secured
      indebtedness to an amount which is no more than $100 million and (v)
      requirements that the Company </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-74</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
</div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt" align="center"><strong>LEAR CORPORATION AND
      SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong>NOTES
      TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>(9) Long-Term Debt
&#8211;
(continued)</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt">maintain a leverage ratio
      of
      not more than 4.0 to 1, as of March 31, 2007, with decreases over time and
      an
      interest coverage ratio of not less than 2.50 to 1 with increases over time.
      </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      leverage and interest coverage ratios, as well as the related components of
      their computation, are defined in the Primary Credit Facility. The leverage
      ratio is calculated as the ratio of consolidated indebtedness to consolidated
      operating profit. For the purpose of the covenant calculation, (i) consolidated
      indebtedness is generally defined as reported debt, net of cash and excludes
      transactions related to the Company&#8217;s asset-backed securitization and factoring
      facilities and (ii) consolidated operating profit is generally defined as net
      income excluding income taxes, interest expense, depreciation and amortization
      expense, other income and expense, minority interests in income of subsidiaries
      in excess of net equity earnings in affiliates, certain restructuring and other
      non-recurring charges, extraordinary gains and losses and other specified
      non-cash items. Consolidated operating profit is a non-GAAP financial measure
      that is presented not as a measure of operating results, but rather as a measure
      used to determine covenant compliance under the Company&#8217;s Primary Credit
      Facility. The interest coverage ratio is calculated as the ratio of consolidated
      operating profit to consolidated interest expense. For the purpose of the
      covenant calculation, consolidated interest expense is generally defined as
      interest expense plus any discounts or expenses related to the Company&#8217;s
      asset-backed securitization facility less amortization of deferred finance
      fees
      and interest income. As of March 31, 2007, the Company was in compliance with
      all covenants set forth in the Primary Credit Facility. The Company&#8217;s leverage
      and interest coverage ratios were 2.3 to 1 and 4.6 to 1, respectively. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 6.65pt; TEXT-INDENT: 18pt">Reconciliations
      of (i) consolidated indebtedness to reported debt, (ii) consolidated operating
      profit to income before provision for income taxes and (iii) consolidated
      interest expense to reported interest expense are shown below (in
      millions):</div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="244">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="30">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="325">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>March
                31,<br>2007</strong></div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="325">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="325">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Consolidated
                indebtedness&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">2,139.3</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="325">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Cash
                and cash equivalents</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">330.4</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="325">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Reported
                debt</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="40" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">2,469.7</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="FONT-SIZE: 12pt; MARGIN: 0pt">&#160;</div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="316">
            </td>
            <td width="12">
            </td>
            <td width="12">
            </td>
            <td width="60">
            </td>
            <td width="3">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="421">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="97" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Three
                Months Ended<br>March 31,
                2007</strong></div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="421">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="81">&#160;</td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="421">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Consolidated
                operating profit</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="81">
              <div style="MARGIN: 0pt" align="right">266.6</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="421">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Depreciation
                and amortization</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="81">
              <div style="MARGIN: 0pt" align="right">(74.5</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="421">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Consolidated
                interest expense</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="81">
              <div style="MARGIN: 0pt" align="right">(45.3</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="421">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Costs
                related to divestiture of interior business</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="81">
              <div style="MARGIN: 0pt" align="right">(33.8</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="421">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Other
                expense, net (excluding certain amounts related to
                asset-backed<br>securitization facility)</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="81">
              <div style="MARGIN: 0pt" align="right">(26.3</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="421">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Restructuring
                charges</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="81">
              <div style="MARGIN: 0pt" align="right">(15.8</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="421">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Other
                excluded items</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="81">
              <div style="MARGIN: 0pt" align="right">27.0</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="421">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Other
                non-cash items</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="16" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="81" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(15.6</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="421">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">Income
                before provision for income taxes</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="16" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">$</div>
            </td>
            <td valign="bottom" width="81" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt" align="right">82.3</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: #ccffcc 3pt double;">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="421">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">Consolidated
                interest expense</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="16">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">$</div>
            </td>
            <td valign="bottom" width="81">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt" align="right">45.3</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="421">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Certain
                amounts related to asset-backed securitization
                facility&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="81">
              <div style="MARGIN: 0pt" align="right">1.3</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="421">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Amortization
                of deferred financing fees</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="81">
              <div style="MARGIN: 0pt" align="right">2.3</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="421">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Bank
                facility and other fees</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="16" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="81" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">2.6</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="421">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Reported
                interest expense</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="16" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="81" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">51.5</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: white 3pt double;">&#160;</td>
          </tr>

      </table>
    </div>
    <div style="FONT-SIZE: 12pt; MARGIN: 0pt">&#160;</div>
    <div style="MARGIN: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-75</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
</div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt" align="center"><strong>LEAR CORPORATION AND
      SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong>NOTES
      TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>(9) Long-Term Debt
&#8211;
(continued)</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      Primary Credit Facility also contains customary events of default, including
      an
      event of default triggered by a change of control of the Company. The senior
      notes due 2013 and 2016 (having an aggregate principal amount outstanding of
      $900 million as of March 31, 2007) provide holders of the notes the right to
      require the Company to repurchase all or any part of their notes at a purchase
      price equal to 101% of the principal amount, plus accrued and unpaid interest,
      upon a &#8220;change of control&#8221; (as defined in the indenture governing the notes).
      The transaction contemplated by the Merger Agreement with affiliates of American
      Real Estate Partners, L.P. would not constitute a change of control for these
      purposes (Note 2, &#8220;Merger Agreement&#8221;). The indentures governing the Company&#8217;s
      other senior notes do not contain a change of control repurchase
      obligation.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      Company&#8217;s senior notes also contain covenants restricting the ability of the
      Company and its subsidiaries to incur liens and to enter into sale and leaseback
      transactions. As of March 31, 2007, the Company was in compliance with all
      covenants and other requirements set forth in its senior notes.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">All of
      the Company&#8217;s senior notes are guaranteed by the same subsidiaries that
      guarantee the Primary Credit Facility. In the event that any such subsidiary
      ceases to be a guarantor under the Primary Credit Facility, such subsidiary
      will
      be released as a guarantor of the senior notes. The Company&#8217;s obligations under
      the senior notes are not secured by the pledge of the assets or capital stock
      of
      any of its subsidiaries.</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>(10) Pension and
      Other
      Postretirement Benefit Plans</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>Net Periodic
      Benefit Cost</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 6.65pt; TEXT-INDENT: 18pt">The
      components of the Company&#8217;s net periodic benefit cost are shown below (in
      millions):</div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="280">
            </td>
            <td width="15">
            </td>
            <td width="7">
            </td>
            <td width="29">
            </td>
            <td width="13">
            </td>
            <td width="6">
            </td>
            <td width="22">
            </td>
            <td width="10">
            </td>
            <td width="7">
            </td>
            <td width="29">
            </td>
            <td width="13">
            </td>
            <td width="6">
            </td>
            <td width="21">
            </td>
            <td width="3">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="373">&#160;</td>
            <td valign="bottom" width="20">&#160;</td>
            <td colspan="5" valign="bottom" width="105" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Pension</strong></div>
            </td>
            <td valign="bottom" width="14">&#160;</td>
            <td colspan="5" valign="bottom" width="104" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Other
                Postretirement</strong></div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="373">&#160;</td>
            <td valign="bottom" width="20">&#160;</td>
            <td colspan="5" valign="bottom" width="105" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Three
                Months Ended</strong></div>
            </td>
            <td valign="bottom" width="14">&#160;</td>
            <td colspan="5" valign="bottom" width="104" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Three
                Months Ended</strong></div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="373">&#160;</td>
            <td valign="bottom" width="20">&#160;</td>
            <td colspan="2" valign="bottom" width="49" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>March
                31,<br>2007</strong></div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td colspan="2" valign="bottom" width="39" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>April
                1,<br>2006</strong></div>
            </td>
            <td valign="bottom" width="14">&#160;</td>
            <td colspan="2" valign="bottom" width="49" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>March
                31,<br>2007</strong></div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td colspan="2" valign="bottom" width="37" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>April
                1,<br>2006</strong></div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="373">&#160;</td>
            <td valign="bottom" width="20">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="39">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="30">&#160;</td>
            <td valign="bottom" width="14">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="39">&#160;</td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="28">&#160;</td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="373">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Service
                cost</div>
            </td>
            <td valign="bottom" width="20">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="9">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="39">
              <div style="MARGIN: 0pt" align="right">8.0</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="30">
              <div style="MARGIN: 0pt" align="right">12.6</div>
            </td>
            <td valign="bottom" width="14">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="9">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="39">
              <div style="MARGIN: 0pt" align="right">2.9</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="9">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="28">
              <div style="MARGIN: 0pt" align="right">3.2</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="373">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Interest
                cost</div>
            </td>
            <td valign="bottom" width="20">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="39">
              <div style="MARGIN: 0pt" align="right">10.4</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="30">
              <div style="MARGIN: 0pt" align="right">10.8</div>
            </td>
            <td valign="bottom" width="14">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="39">
              <div style="MARGIN: 0pt" align="right">3.7</div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="28">
              <div style="MARGIN: 0pt" align="right">3.7</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="373">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Expected
                return on plan assets</div>
            </td>
            <td valign="bottom" width="20">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="39">
              <div style="MARGIN: 0pt" align="right">(10.2</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="30">
              <div style="MARGIN: 0pt" align="right">(9.7</div>
            </td>
            <td valign="bottom" width="14">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="39">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="28">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="373">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Amortization
                of actuarial loss</div>
            </td>
            <td valign="bottom" width="20">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="39">
              <div style="MARGIN: 0pt" align="right">0.8</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="30">
              <div style="MARGIN: 0pt" align="right">1.8</div>
            </td>
            <td valign="bottom" width="14">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="39">
              <div style="MARGIN: 0pt" align="right">1.1</div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="28">
              <div style="MARGIN: 0pt" align="right">1.4</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="373">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Amortization
                of transition
                obligation&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="20">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="39">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="30">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="14">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="39">
              <div style="MARGIN: 0pt" align="right">0.2</div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="28">
              <div style="MARGIN: 0pt" align="right">0.2</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="373">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Amortization
                of prior service cost</div>
            </td>
            <td valign="bottom" width="20">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="39">
              <div style="MARGIN: 0pt" align="right">1.1</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="30">
              <div style="MARGIN: 0pt" align="right">1.3</div>
            </td>
            <td valign="bottom" width="14">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="39">
              <div style="MARGIN: 0pt" align="right">(0.9</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="28">
              <div style="MARGIN: 0pt" align="right">(0.9</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="373">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Curtailment
                gain, net</div>
            </td>
            <td valign="bottom" width="20">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="39">
              <div style="MARGIN: 0pt" align="right">(36.9</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="30">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="14">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="39">
              <div style="MARGIN: 0pt" align="right">(13.4</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="28">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="373">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Special
                termination benefits</div>
            </td>
            <td valign="bottom" width="20">&#160;</td>
            <td valign="bottom" width="9" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="39" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">5.7</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="30" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">0.1</div>
            </td>
            <td valign="bottom" width="14">&#160;</td>
            <td valign="bottom" width="9" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="39" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">0.8</div>
            </td>
            <td valign="bottom" width="18">&#160;</td>
            <td valign="bottom" width="9" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="28" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">0.1</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="373">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">Net
                periodic benefit cost (gain)</div>
            </td>
            <td valign="bottom" width="20">&#160;</td>
            <td valign="bottom" width="9" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">$</div>
            </td>
            <td valign="bottom" width="39" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt" align="right">(21.1</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">)</div>
            </td>
            <td valign="bottom" width="8" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">$</div>
            </td>
            <td valign="bottom" width="30" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt" align="right">16.9</div>
            </td>
            <td valign="bottom" width="14">&#160;</td>
            <td valign="bottom" width="9" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">$</div>
            </td>
            <td valign="bottom" width="39" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt" align="right">(5.6</div>
            </td>
            <td valign="bottom" width="18">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">)</div>
            </td>
            <td valign="bottom" width="9" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">$</div>
            </td>
            <td valign="bottom" width="28" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt" align="right">7.7</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: #ccffcc 3pt double;">&#160;</td>
          </tr>

      </table>
    </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">In the
      first quarter of 2007, the Company recorded a pension plan curtailment gain
      of
      $36.4 million and an other postretirement benefit plan curtailment gain of
      $14.7
      million. The pension plan curtailment gain resulted from the suspension of
      the
      accrual of defined benefits related to the Company&#8217;s U.S. salaried defined
      benefit pension plan as the Company elected to freeze its U.S. salaried defined
      benefit plan effective December 31, 2006. The other postretirement benefit
      plan
      curtailment gain resulted from employee terminations associated with a facility
      closure in 2006. As both curtailment gains were incurred subsequent to the
      Company&#8217;s defined benefit plan measurement date of September 30, 2006, they were
      recorded in the first quarter of 2007. The Company recognized additional net
      pension and other postretirement benefit costs of $5.2 million and $1.3 million,
      respectively, related to other restructuring actions and the divestiture of
      the
      Company&#8217;s North American interior business.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-76</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
</div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt" align="center"><strong>LEAR CORPORATION AND
      SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong>NOTES
      TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>(10) Pension and
      Other
      Postretirement Benefit Plans &#8211; (continued)</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>Contributions</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Employer
      contributions to the Company&#8217;s domestic and foreign pension plans for the three
      months ended March 31, 2007, were approximately $9.5 million, in aggregate.
      The
      Company expects to contribute an additional $45 million to $50 million, in
      aggregate, to its domestic and foreign pension portfolios in 2007.</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>(11) Cost of Sales
      and
      Selling, General and Administrative Expenses</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Cost
      of
      sales includes material, labor and overhead costs associated with the
      manufacture and distribution of the Company&#8217;s products. Distribution costs
      include inbound freight costs, purchasing and receiving costs, inspection costs,
      warehousing costs and other costs of the Company&#8217;s distribution network.
      Selling, general and administrative expenses include selling, research and
      development and administrative costs not directly associated with the
      manufacture and distribution of the Company&#8217;s products.</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>(12) Other (Income)
      Expense, Net</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 6.65pt; TEXT-INDENT: 18pt">Other
      (income) expense includes state and local non-income taxes, foreign exchange
      gains and losses, fees associated with the Company&#8217;s asset-backed securitization
      and factoring facilities, minority interests in consolidated subsidiaries,
      equity in net income of affiliates, gains and losses on the sales of assets
      and
      other miscellaneous income and expense. A summary of other (income) expense,
      net
      is shown below (in millions):</div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="220">
            </td>
            <td width="12">
            </td>
            <td width="7">
            </td>
            <td width="27">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="21">
            </td>
            <td width="3">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="294">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>March
                31,<br>2007</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="35" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>April
                1,<br>2006</strong></div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="294">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="36">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="28">&#160;</td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="294">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Other
                expense</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="10">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="36">
              <div style="MARGIN: 0pt" align="right">28.6</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="28">
              <div style="MARGIN: 0pt" align="right">18.4</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="294">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Other
                income</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="10" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="36" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(3.6</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="28" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(26.7</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="294">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Other
                (income) expense,
                net&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="10" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="36" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">25.0</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="28" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">(8.3</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: #ccffcc 3pt double;">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">For the
      first quarter of 2007, other expense includes a loss of $3.9 million related
      to
      the acquisition of the minority interest in an affiliate. For the first quarter
      of 2006, other income includes gains of $25.9 million related to the sales
      of
      the Company&#8217;s interests in two affiliates. </div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>(13) Income
      Taxes</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      provision for income taxes was $32.4 million in the first quarter of 2007,
      representing an effective tax rate of 39.4%, as compared to a benefit for income
      taxes of $0.2 million, representing an effective tax rate of negative 1.4%,
      in
      the first quarter of 2006. The provision for income taxes in the first quarter
      of 2007 was impacted by costs of $33.8 million related to the divestiture of
      the
      Company&#8217;s interior business, for a significant portion of which no tax benefit
      was provided as it was incurred in the United States. This was offset by the
      impact of the U.S. salaried pension plan curtailment gain of $36.4 million,
      for
      which no tax expense was provided. The provision for income taxes in the first
      quarter of 2007 was also impacted by a portion of the Company&#8217;s restructuring
      charges and costs related to the Merger Agreement, for which no tax benefit
      was
      provided as the charges were incurred in certain countries for which no tax
      benefit is likely to be realized due to a history of operating losses in those
      countries. Excluding these items, the effective tax rate in the first quarter
      of
      2007 approximated the U.S. federal statutory income tax rate of 35% adjusted
      for
      income taxes on foreign earnings, losses and remittances, foreign valuation
      allowances, the U.S. valuation allowance, tax credits, income tax incentives
      and
      other permanent items. Further, the Company&#8217;s current and future provision for
      income taxes is significantly impacted by the recognition of valuation
      allowances in certain countries, particularly the United States. The Company
      intends to maintain these allowances until it is more likely than not that
      the
      deferred tax assets will be realized. The Company&#8217;s future income tax expense
      will include no tax benefit with respect to U.S. losses and no tax expense
      with
      respect to U.S. income until the allowance is eliminated. Accordingly, income
      taxes are impacted by the U.S. valuation allowance and the mix of earnings
      among
      jurisdictions. The benefit for income taxes in the first quarter of 2006
      includes a one-time tax </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-77</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
</div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt" align="center"><strong>LEAR CORPORATION AND
      SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong>NOTES
      TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>(13) Income Taxes
&#8211;
(continued)</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt">benefit of $8.6 million
      resulting from a tax audit resolution and court rulings in certain
      jurisdictions. The benefit for income taxes in the first quarter of 2006 was
      also impacted by gains on the sales of the Company&#8217;s interests in two U.S.
      affiliates, for which no tax expense was recognized, and a portion of the
      Company&#8217;s restructuring charges, for which no tax benefit was provided as the
      charges were incurred in certain countries for which no tax benefit is likely
      to
      be realized due to a history of operating losses in those countries. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">On
      January 1, 2007 the Company adopted the provisions of Interpretation (&#8220;FIN&#8221;) No.
      48, &#8220;Accounting for Uncertainty in Income Taxes &#8212; an Interpretation of FASB
      Statement No. 109.&#8221; FIN 48 clarifies the accounting for uncertainty in income
      taxes by establishing minimum standards for the recognition and measurement
      of
      tax positions taken or expected to be taken in a tax return. Under the
      requirements of FIN 48, the Company must review all of its tax positions and
      make a determination as to whether its position is more-likely-than-not to
      be
      sustained upon examination by regulatory authorities. If a tax position meets
      the more-likely-than-not standard, then the related tax benefit is measured
      based on the cumulative probability analysis of the amount that is
      more-likely-than-not to be realized upon ultimate settlement or disposition
      of
      the underlying issue.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      Company recognized the cumulative impact of adopting FIN 48 as a $4.5 million
      decrease to its liability for unrecognized tax benefits with a corresponding
      decrease to the Company&#8217;s retained deficit balance as of January&#160;1, 2007.
      As of January 1, 2007, the Company&#8217;s gross unrecognized tax benefits were $148.6
      million (including interest and penalties), of which $114.9 million, if
      recognized, would affect the Company&#8217;s effective tax rate. The gross
      unrecognized tax benefits differ from the amount that would affect the effective
      tax rate due primarily to the impact of the valuation allowance. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      Company continues to recognize both interest and penalties accrued with respect
      to unrecognized tax benefits as income tax expense. As of January 1, 2007 the
      Company had recorded reserves for the payment of interest and penalties in
      the
      amount of $28.6 million. During the three months ended March 31, 2007, the
      Company recognized an increase in liability for gross interest and penalties
      of
      approximately $4.4 million.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      Company operates in multiple jurisdictions throughout the world, and its tax
      returns are periodically audited or subject to review by both domestic and
      foreign tax authorities. The Company considers its significant tax jurisdictions
      to include Canada, Germany, Hungary, Mexico, Poland, Spain and the United
      States. The Company or its subsidiaries remain subject to income tax examination
      in certain U.S. state and local jurisdictions for years after 1998, in Germany,
      Mexico and Poland for years after 2000, in Spain for years after 2001 and in
      the
      U.S. federal jurisdiction, Canada and Hungary for years after 2002.</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>(14) Net Income Per
      Share</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 6.65pt; TEXT-INDENT: 18pt">Basic
      net income per share is computed using the weighted average common shares
      outstanding during the period. Diluted net income per share includes the
      dilutive effect of common stock equivalents using the average share price during
      the period, as well as shares issuable upon conversion of the Company&#8217;s
      outstanding zero-coupon convertible senior notes. A summary of shares
      outstanding is shown below:</div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="246">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="45">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="45">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="328">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="5" valign="bottom" width="150" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Three
                Months Ended</strong></div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="328">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="66" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>March
                31,<br>2007</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="66" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>April
                1,<br>2006</strong></div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="328">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="60">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="60">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="328">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Weighted
                average common shares
                outstanding&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="60">
              <div style="MARGIN: 0pt" align="right">76,410,482</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="60">
              <div style="MARGIN: 0pt" align="right">67,216,992</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="328">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Dilutive
                effect of common stock equivalents</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="60" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">1,579,369</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="60" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">724,075</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="328">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Diluted
                shares outstanding</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">&#160;</td>
            <td valign="bottom" width="60" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">77,989,851</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">&#160;</td>
            <td valign="bottom" width="60" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">67,941,067</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="328">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Diluted
                net income per share</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="60">
              <div style="MARGIN: 0pt" align="right">0.64</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="60">
              <div style="MARGIN: 0pt" align="right">0.26</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Shares
      issuable upon conversion of the Company&#8217;s outstanding zero-coupon convertible
      debt and the effect of certain common stock equivalents, including options,
      restricted stock units, performance units and stock appreciation rights, were
      excluded from the computation of diluted shares outstanding for the three months
      ended </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-78</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
</div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt" align="center"><strong>LEAR CORPORATION AND
      SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong>NOTES
      TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>(14) Net Income Per
      Share &#8211; (continued)</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 6.65pt">March 31, 2007 and April
      1, 2006, as inclusion would have resulted in antidilution. A summary of these
      options and their exercise prices, as well as these restricted stock units
      and
      stock appreciation rights, is shown below: </div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="202">
            </td>
            <td width="12">
            </td>
            <td width="65">
            </td>
            <td width="12">
            </td>
            <td width="65">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="270">&#160;</td>
            <td valign="top" width="16">&#160;</td>
            <td colspan="3" valign="bottom" width="190" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Three
                Months Ended</strong></div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="270">&#160;</td>
            <td valign="top" width="16">&#160;</td>
            <td valign="bottom" width="86" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>March
                31, 2007</strong></div>
            </td>
            <td valign="top" width="16">&#160;</td>
            <td valign="bottom" width="86" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>April
                1, 2006</strong></div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="270">&#160;</td>
            <td valign="top" width="16">&#160;</td>
            <td valign="bottom" width="86">&#160;</td>
            <td valign="top" width="16">&#160;</td>
            <td valign="bottom" width="86">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="270">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt"><strong>Options</strong></div>
            </td>
            <td valign="top" width="16">&#160;</td>
            <td valign="bottom" width="86">&#160;</td>
            <td valign="top" width="16">&#160;</td>
            <td valign="bottom" width="86">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="270">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Antidilutive
                options</div>
            </td>
            <td valign="top" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="86">
              <div style="MARGIN: 0pt" align="center">2,236,780</div>
            </td>
            <td valign="top" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="86">
              <div style="MARGIN: 0pt" align="center">2,907,005</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="270">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Exercise
                price</div>
            </td>
            <td valign="top" width="16">&#160;</td>
            <td valign="bottom" width="86">
              <div style="MARGIN: 0pt" align="center">$35.93 &#8211; $55.33</div>
            </td>
            <td valign="top" width="16">&#160;</td>
            <td valign="bottom" width="86">
              <div style="MARGIN: 0pt" align="center">$22.12 &#8211; $55.33</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="270">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt"><strong>Restricted
                stock units</strong></div>
            </td>
            <td valign="top" width="16">&#160;</td>
            <td valign="bottom" width="86">
              <div style="MARGIN: 0pt" align="center">&#8212;</div>
            </td>
            <td valign="top" width="16">&#160;</td>
            <td valign="bottom" width="86">
              <div style="MARGIN: 0pt" align="center">821,237</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="270">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt"><strong>Performance
                units</strong></div>
            </td>
            <td valign="top" width="16">&#160;</td>
            <td valign="bottom" width="86">
              <div style="MARGIN: 0pt" align="center">&#8212;</div>
            </td>
            <td valign="top" width="16">&#160;</td>
            <td valign="bottom" width="86">
              <div style="MARGIN: 0pt" align="center">48,563</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="270">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt"><strong>Stock
                appreciation
                rights&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</strong></div>
            </td>
            <td valign="top" width="16">&#160;</td>
            <td valign="bottom" width="86">
              <div style="MARGIN: 0pt" align="center">642,285</div>
            </td>
            <td valign="top" width="16">&#160;</td>
            <td valign="bottom" width="86">
              <div style="MARGIN: 0pt" align="center">1,138,114</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>(15) Comprehensive
      Income </strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 6.65pt; TEXT-INDENT: 18pt">Comprehensive
      income is defined as all changes in a Company&#8217;s net assets except changes
      resulting from transactions with stockholders. It differs from net income in
      that certain items currently recorded in equity are included in comprehensive
      income. A summary of comprehensive income is shown below (in millions):</div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="261">
            </td>
            <td width="12">
            </td>
            <td width="7">
            </td>
            <td width="27">
            </td>
            <td width="15">
            </td>
            <td width="6">
            </td>
            <td width="22">
            </td>
            <td width="3">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="349">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="5" valign="bottom" width="106" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Three
                Months Ended</strong></div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="349">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>March
                31,<br>2007</strong></div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td colspan="2" valign="bottom" width="38" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>April
                1,<br>2006</strong></div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="349">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="36">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="29">&#160;</td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="349">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Net
                income</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="10">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="36">
              <div style="MARGIN: 0pt" align="right">49.9</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="29">
              <div style="MARGIN: 0pt" align="right">17.9</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="349">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Other
                comprehensive income (loss):</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="36">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="29">&#160;</td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="349">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 16.2pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Derivative
                instruments and hedging
                activities&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="36">
              <div style="MARGIN: 0pt" align="right">(5.0</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="29">
              <div style="MARGIN: 0pt" align="right">(5.8</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="349">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 16.2pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Foreign
                currency translation adjustment</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="10" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="36" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">13.5</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="29" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">15.6</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: white 0.5pt solid;">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="349">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Other
                comprehensive income</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="10" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="36" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">8.5</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="29" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">9.8</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="349">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Comprehensive
                income</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="10" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="36" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">58.4</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="29" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">27.7</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: white 3pt double;">&#160;</td>
          </tr>

      </table>
    </div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>(16) Pre-Production
      Costs Related to Long-Term Supply Agreements</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      Company incurs pre-production engineering, research and development (&#8220;ER&amp;D&#8221;)
      and tooling costs related to the products produced for its customers under
      long-term supply agreements. The Company expenses all pre-production ER&amp;D
      costs for which reimbursement is not contractually guaranteed by the customer.
      In addition, the Company expenses all pre-production tooling costs related
      to
      customer-owned tools for which reimbursement is not contractually guaranteed
      by
      the customer or for which the customer has not provided a non-cancelable right
      to use the tooling. During the first quarters of 2007 and 2006, the Company
      capitalized $22.4 million and $38.8 million, respectively, of pre-production
      ER&amp;D costs for which reimbursement is contractually guaranteed by the
      customer. In addition, during the first quarters of 2007 and 2006, the Company
      capitalized $42.5 million and $173.9 million, respectively, of pre-production
      tooling costs related to customer-owned tools for which reimbursement is
      contractually guaranteed by the customer or for which the customer has provided
      a non-cancelable right to use the tooling. These amounts are included in other
      current and long-term assets in the condensed consolidated balance sheets.
      During the first quarters of 2007 and 2006, the Company collected $91.6 million
      and $298.5 million, respectively, of cash related to ER&amp;D and tooling costs.
</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">During
      the first quarter of 2007, the Company did not capitalize any Company-owned
      tooling. During the first quarter of 2006, the Company capitalized $1.4 million
      of Company-owned tooling. Amounts capitalized as Company-owned tooling are
      included in property, plant and equipment, net in the condensed consolidated
      balance sheets.</div>
    <div style="MARGIN: 0pt" align="center"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-79</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
</div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt" align="center"><strong>LEAR CORPORATION AND
      SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong>NOTES
      TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>(16) Pre-Production
      Costs Related to Long-Term Supply Agreements &#8211; (continued)</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 6.65pt; TEXT-INDENT: 18pt">The
      classification of recoverable customer engineering and tooling is shown below
      (in millions):</div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="229">
            </td>
            <td width="12">
            </td>
            <td width="6">
            </td>
            <td width="28">
            </td>
            <td width="12">
            </td>
            <td width="8">
            </td>
            <td width="38">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="305">&#160;</td>
            <td valign="top" width="16">&#160;</td>
            <td colspan="2" valign="top" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>March
                31,<br>2007</strong></div>
            </td>
            <td valign="top" width="16">&#160;</td>
            <td colspan="2" valign="top" width="62" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>December
                31,<br>2006</strong></div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="305">&#160;</td>
            <td valign="top" width="16">&#160;</td>
            <td valign="top" width="8">&#160;</td>
            <td valign="bottom" width="38">&#160;</td>
            <td valign="top" width="16">&#160;</td>
            <td valign="top" width="11">&#160;</td>
            <td valign="bottom" width="50">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="305">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Current</div>
            </td>
            <td valign="top" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="top" width="8">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="38">
              <div style="MARGIN: 0pt" align="right">61.4</div>
            </td>
            <td valign="top" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="top" width="11">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">87.7</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="305">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Long-term</div>
            </td>
            <td valign="top" width="16">&#160;</td>
            <td valign="top" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="38" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">112.8</div>
            </td>
            <td valign="top" width="16">&#160;</td>
            <td valign="top" width="11" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">116.2</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="305">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Recoverable
                customer engineering and
                tooling&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="top" width="16">&#160;</td>
            <td valign="top" width="8" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="38" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">174.2</div>
            </td>
            <td valign="top" width="16">&#160;</td>
            <td valign="top" width="11" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="50" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">203.9</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Gains
      and
      losses related to ER&amp;D and tooling projects are reviewed on an aggregated
      program basis. Net gains on projects are deferred and recognized over the life
      of the long-term supply agreement. Net losses on projects are recognized as
      costs are incurred.</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>(17) Legal and Other
      Contingencies</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">As of
      March 31, 2007 and December 31, 2006, the Company had recorded reserves for
      pending legal disputes, including commercial disputes and other matters, of
      $21.3 million and $18.0 million, respectively. Such reserves reflect amounts
      recognized in accordance with accounting principles generally accepted in the
      United States and typically exclude the cost of legal representation. Product
      warranty liabilities are recorded separately from legal liabilities, as
      described below.</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>Commercial
      Disputes</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      Company is involved from time to time in legal proceedings and claims,
      including, without limitation, commercial or contractual disputes with its
      suppliers, competitors and customers. These disputes vary in nature and are
      usually resolved by negotiations between the parties. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">On
      January 29, 2002, Seton Company (&#8220;Seton&#8221;), one of the Company&#8217;s leather
      suppliers, filed a suit alleging that the Company had breached a purported
      agreement to purchase leather from Seton for seats for the life of the General
      Motors GMT 800 program. Seton filed the lawsuit in the U.S. District Court
      for
      the Eastern District of Michigan seeking compensatory and exemplary damages
      totaling approximately $96.5 million, plus interest, on breach of contract
      and
      promissory estoppel claims. In May 2005, this case proceeded to trial, and
      the
      jury returned a $30.0 million verdict against the Company. On September 27,
      2005, the Court denied the Company&#8217;s post-trial motions challenging the judgment
      and granted Seton&#8217;s motion to award prejudgment interest in the amount of
      approximately $4.7 million. On October 4, 2006, the Sixth Circuit Court of
      Appeals affirmed the judgment of the trial court. On October 18, 2006, the
      Company filed a Petition for Rehearing with the court which was denied on
      November 16, 2006. On December 7, 2006, the Court of Appeals issued a mandate
      indicating that the order affirming the judgment was final. In December 2006,
      the Company paid the principal and all remaining interest on the judgment.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">On
      January 26, 2004, the Company filed a patent infringement lawsuit against
      Johnson Controls Inc. and Johnson Controls Interiors LLC (together, &#8220;JCI&#8221;) in
      the U.S. District Court for the Eastern District of Michigan alleging that
      JCI&#8217;s
      garage door opener products infringed certain of the Company&#8217;s radio frequency
      transmitter patents. JCI counterclaimed seeking a declaratory judgment that
      the
      subject patents are invalid and unenforceable, and that JCI is not infringing
      these patents. JCI also has filed motions for summary judgment asserting that
      its garage door opener products do not infringe the Company&#8217;s patents and that
      one of the Company&#8217;s patents is invalid and unenforceable. The Company is
      vigorously pursuing its claims against JCI. A trial date has not been
      scheduled.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">After
      the
      Company filed its patent infringement action against JCI, affiliates of JCI
      sued
      one of the Company&#8217;s vendors and certain of the vendor&#8217;s employees in Ottawa
      County, Michigan Circuit Court on July 8, 2004, alleging misappropriation of
      trade secrets and disclosure of confidential information. The suit alleges
      that
      the defendants misappropriated and shared with the Company trade secrets
      involving JCI&#8217;s universal garage door opener product. JCI seeks to enjoin the
      defendants from selling or attempting to sell a competing product, as well
      as
      compensatory </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-80</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
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  <p></p>
</div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt" align="center"><strong>LEAR CORPORATION AND
      SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong>NOTES
      TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>(17) Legal and Other
      Contingencies &#8211; (continued)</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt">damages and attorney fees.
      The Company is not a defendant in this lawsuit; however, the agreements between
      the Company and the defendants contain customary indemnification provisions.
      The
      Company does not believe that its garage door opener product benefited from
      any
      allegedly misappropriated trade secrets or technology. However, JCI has sought
      discovery of certain information which the Company believes is confidential
      and
      proprietary, and the Company has intervened in the case as a non-party for
      the
      limited purpose of protecting its rights with respect to JCI&#8217;s discovery
      efforts. The trial has been rescheduled to October 2007.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">On June
      13, 2005, The Chamberlain Group (&#8220;Chamberlain&#8221;) filed a lawsuit against the
      Company and Ford Motor Company (&#8220;Ford&#8221;) in the Northern District of Illinois
      alleging patent infringement. Two counts were asserted against the Company
      and
      Ford based upon two Chamberlain rolling-code garage door opener system patents.
      Two additional counts were asserted against Ford only (not the Company) based
      upon different Chamberlain patents. The Chamberlain lawsuit was filed in
      connection with the marketing of the Company&#8217;s universal garage door opener
      system, which competes with a product offered by JCI. JCI obtained technology
      from Chamberlain to operate its product. In October 2005, JCI joined the lawsuit
      as a plaintiff along with Chamberlain. In October 2006, Ford was dismissed
      from
      the suit. JCI and Chamberlain have filed a motion for a preliminary injunction,
      and on March 30, 2007, the Court issued a decision granting plaintiffs&#8217; motion
      for a preliminary injunction but did not enter an injunction at that time.
      In
      response, the Company filed a motion seeking to stay the effectiveness of any
      injunction that may be entered and General Motors Corporation (&#8220;GM&#8221;) moved to
      intervene. On April 25, 2007, the court granted GM&#8217;s motion to intervene,
      entered a preliminary injunction order that exempts the Company&#8217;s existing GM
      programs and denied the Company&#8217;s motion to stay the effectiveness of the
      preliminary injunction order pending appeal. On April 27, 2007, the Company
      filed its notice of appeal from the granting of the preliminary injunction
      and
      the denial of its motion to stay its effectiveness. No trial date has been
      set
      by the district court.</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>Product Liability
      Matters</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">In the
      event that use of the Company&#8217;s products results in, or is alleged to result in,
      bodily injury and/or property damage or other losses, the Company may be subject
      to product liability lawsuits and other claims. In addition, the Company is
      a
      party to warranty-sharing and other agreements with its customers relating
      to
      its products. These customers may pursue claims against the Company for
      contribution of all or a portion of the amounts sought in connection with
      product liability and warranty claims. The Company can provide no assurances
      that it will not experience material claims in the future or that it will not
      incur significant costs to defend such claims. In addition, if any of the
      Company&#8217;s products are, or are alleged to be, defective, the Company may be
      required or requested by its customers to participate in a recall or other
      corrective action involving such products. Certain of the Company&#8217;s customers
      have asserted claims against the Company for costs related to recalls or other
      corrective actions involving its products. In certain instances, the allegedly
      defective products were supplied by tier II suppliers against whom the Company
      has sought or will seek contribution. The Company carries insurance for certain
      legal matters, including product liability claims, but such coverage may be
      limited. The Company does not maintain insurance for product warranty or recall
      matters.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      Company records product warranty liabilities based on its individual customer
      agreements. Product warranty liabilities are recorded for known warranty issues
      when amounts related to such issues are probable and reasonably estimable.
      In
      certain product liability and warranty matters, the Company may seek recovery
      from its suppliers that supply materials or services included within the
      Company&#8217;s products that are associated with the related claims.</div>
    <div style="MARGIN: 0pt" align="center"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-81</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
</div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt" align="center"><strong>LEAR CORPORATION AND
      SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong>NOTES
      TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>(17) Legal and Other
      Contingencies &#8211; (continued)</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 6.65pt; TEXT-INDENT: 18pt">A
      summary of the changes in product warranty liabilities for the three months
      ended March 31, 2007, is shown below (in millions):</div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="295">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="17">
            </td>
            <td width="3">
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="394">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Balance
                as of January 1, 2007</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="23">
              <div style="MARGIN: 0pt" align="right">40.9</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="394">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 13.8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Expense</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="23">
              <div style="MARGIN: 0pt" align="right">1.4</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="394">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 13.8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Income
                related to favorable
                settlements&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="23">
              <div style="MARGIN: 0pt" align="right">(2.7</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="394">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 13.8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Settlements</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="23">
              <div style="MARGIN: 0pt" align="right">(5.8</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="394">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 13.8pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Foreign
                currency translation and other</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="23" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(1.2</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="394">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Balance
                as of March 31, 2007</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 2pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="23" style="border-bottom: #000000 2pt double;">
              <div style="MARGIN: 0pt" align="right">32.6</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>

      </table>
    </div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>Environmental
      Matters</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      Company is subject to local, state, federal and foreign laws, regulations and
      ordinances which govern activities or operations that may have adverse
      environmental effects and which impose liability for clean-up costs resulting
      from past spills, disposals or other releases of hazardous wastes and
      environmental compliance. The Company&#8217;s policy is to comply with all applicable
      environmental laws and to maintain an environmental management program based
      on
      ISO 14001 to ensure compliance. However, the Company currently is, has been
      and
      in the future may become the subject of formal or informal enforcement actions
      or procedures.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      Company has been named as a potentially responsible party at several third-party
      landfill sites and is engaged in the cleanup of hazardous waste at certain
      sites
      owned, leased or operated by the Company, including several properties acquired
      in its 1999 acquisition of UT Automotive, Inc. (&#8220;UT Automotive&#8221;). Certain
      present and former properties of UT Automotive are subject to environmental
      liabilities which may be significant. The Company obtained agreements and
      indemnities with respect to certain environmental liabilities from United
      Technologies Corporation (&#8220;UTC&#8221;) in connection with its acquisition of UT
      Automotive. UTC manages and directly funds these environmental liabilities
      pursuant to its agreements and indemnities with the Company. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">As of
      March 31, 2007 and December 31, 2006, the Company had recorded reserves for
      environmental matters of $2.8 million and $3.2 million, respectively. While
      the
      Company does not believe that the environmental liabilities associated with
      its
      current and former properties will have a material adverse effect on its
      business, consolidated financial position, results of operations or cash flows,
      no assurances can be given in this regard.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">One of
      the Company&#8217;s subsidiaries and certain predecessor companies were named as
      defendants in an action filed by three plaintiffs in August 2001 in the Circuit
      Court of Lowndes County, Mississippi, asserting claims stemming from alleged
      environmental contamination caused by an automobile parts manufacturing plant
      located in Columbus, Mississippi. The plant was acquired by the Company as
      part
      of its acquisition of UT Automotive in May 1999 and sold almost immediately
      thereafter, in June 1999, to Johnson Electric Holdings Limited (&#8220;Johnson
      Electric&#8221;). In December 2002, 61 additional cases were filed by approximately
      1,000 plaintiffs in the same court against the Company and other defendants
      relating to similar claims. In September 2003, the Company was dismissed as
      a
      party to these cases. In the first half of 2004, the Company was named again
      as
      a defendant in these same 61 additional cases and was also named in five new
      actions filed by approximately 150 individual plaintiffs related to alleged
      environmental contamination from the same facility. The plaintiffs in these
      actions are persons who allegedly were either residents and/or owned property
      near the facility or worked at the facility. In November 2004, two additional
      lawsuits were filed by 28 plaintiffs (individuals and organizations), alleging
      property damage as a result of the alleged contamination. Each of these
      complaints seeks compensatory and punitive damages.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">All of
      the plaintiffs subsequently dismissed their claims for health effects and
      personal injury damages and the cases proceeded with approximately 280
      plaintiffs alleging property damage claims only. In March 2005, the venue for
      these lawsuits was transferred from Lowndes County, Mississippi, to Lafayette
      County, Mississippi. In April 2005, certain plaintiffs filed an amended
      complaint alleging negligence, nuisance, intentional tort and conspiracy claims
      and seeking compensatory and punitive damages. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-82</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
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  <p></p>
</div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt" align="center"><strong>LEAR CORPORATION AND
      SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong>NOTES
      TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>(17) Legal and Other
      Contingencies &#8211; (continued)</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">In the
      first quarter of 2006, co-defendant UTC entered into a settlement agreement
      with
      the plaintiffs. During the third quarter of 2006, the Company and co-defendant
      Johnson Electric entered into a settlement memorandum with the plaintiffs&#8217;
counsel outlining the terms of a global settlement, including establishing
      the
      requisite percentage of executed settlement agreements and releases that were
      required to be obtained from the individual plaintiffs for a final settlement
      to
      proceed. Since November 2006, the Company has reached a final settlement with
      respect to approximately 85% of the plaintiffs involving aggregate payments
      of
      $875,000 and is in the process of attempting to resolve the remaining
      claims.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">UTC,
      the
      former owner of UT Automotive, and Johnson Electric have each sought
      indemnification for losses associated with the Mississippi claims from the
      Company under the respective acquisition agreements, and the Company has claimed
      indemnification from them under the same agreements. In the first quarter of
      2006, UTC filed a lawsuit against the Company in the State of Connecticut
      Superior Court, District of Hartford, seeking declaratory relief and
      indemnification from the Company for the settlement amount, attorney fees,
      costs
      and expenses UTC paid in settling and defending the Columbus, Mississippi
      lawsuits. In the second quarter of 2006, the Company filed a motion to dismiss
      this matter and filed a separate action against UTC and Johnson Electric in
      the
      State of Michigan, Circuit Court for the County of Oakland, seeking declaratory
      relief and indemnification from UTC or Johnson Electric for the settlement
      amount, attorney fees, costs and expenses the Company has paid, or will pay,
      in
      settling and defending the Columbus, Mississippi lawsuits. During the fourth
      quarter of 2006, UTC agreed to dismiss the lawsuit filed in the State of
      Connecticut Superior Court, District of Hartford and agreed to proceed with
      the
      lawsuit filed in the State of Michigan, Circuit Court for the County of Oakland.
      During the first quarter of 2007, Johnson Electric and UTC each filed
      counter-claims against the Company seeking declaratory relief and
      indemnification from the Company for the settlement amount, attorney fees,
      costs
      and expenses each has paid or will pay in settling and defending the Columbus,
      Mississippi lawsuits. To date, no company admits to, or has been found to have,
      an obligation to fully defend and indemnify any other. The Company intends
      to
      vigorously pursue its claims against UTC and Johnson Electric and believes
      that
      it is entitled to indemnification from either UTC or Johnson Electric for its
      losses. However, the ultimate outcome of these matters is unknown.</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>Other
      Matters</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">In
      January 2004, the Securities and Exchange Commission (the &#8220;SEC&#8221;) commenced an
      informal inquiry into the Company&#8217;s September 2002 amendment of its 2001 Form
      10-K. The amendment was filed to report the Company&#8217;s employment of relatives of
      certain of its directors and officers and certain related party transactions.
      The SEC&#8217;s inquiry does not relate to the Company&#8217;s consolidated financial
      statements. In February 2005, the staff of the SEC informed the Company that
      it
      proposed to recommend to the SEC that it issue an administrative &#8220;cease and
      desist&#8221; order as a result of the Company&#8217;s failure to disclose the related party
      transactions in question prior to the amendment of its 2001 Form 10-K. The
      Company expects to consent to the entry of the order as part of a settlement
      of
      this matter.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">In April
      2006, a former employee of the Company filed a purported class action lawsuit
      in
      the U.S. District Court for the Eastern District of Michigan against the
      Company, members of its Board of Directors, members of its Employee Benefits
      Committee (the &#8220;EBC&#8221;) and certain members of its human resources personnel
      alleging violations of the Employment Retirement Income Security Act (&#8220;ERISA&#8221;)
      with respect to the Company&#8217;s retirement savings plans for salaried and hourly
      employees. In the second quarter of 2006, the Company was served with three
      additional purported class action ERISA lawsuits, each of which contained
      similar allegations against the Company, members of its Board of Directors,
      members of its EBC and certain members of its senior management and its human
      resources personnel. At the end of the second quarter of 2006, the court entered
      an order consolidating these four lawsuits as <i>In re: Lear Corp. ERISA
      Litigation.</i> During the third quarter of 2006, plaintiffs filed their
      consolidated complaint, which alleges breaches of fiduciary duties substantially
      similar to those alleged in the four individually filed lawsuits. The
      consolidated complaint continues to name certain current and former members
      of
      the Board of Directors and the EBC and certain members of senior management
      and
      adds certain other current and former members of the EBC. The consolidated
      complaint generally alleges that the defendants breached their </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-83</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
</div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt" align="center"><strong>LEAR CORPORATION AND
      SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong>NOTES
      TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>(17) Legal and Other
      Contingencies &#8211; (continued)</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt">fiduciary duties to plan
      participants in connection with the administration of the Company&#8217;s retirement
      savings plans for salaried and hourly employees. The fiduciary duty claims
      are
      largely based on allegations of breaches of the fiduciary duties of prudence
      and
      loyalty and of over-concentration of plan assets in the Company&#8217;s common stock.
      The plaintiffs purport to bring these claims on behalf of the plans and all
      persons who were participants in or beneficiaries of the plans from October
      21,
      2004, to the present and seek to recover losses allegedly suffered by the plans.
      The complaints do not specify the amount of damages sought. During the fourth
      quarter of 2006, the defendants filed a motion to dismiss all defendants and
      all
      counts in the consolidated complaint. The filings related to the motion to
      dismiss have been made, but the Court has not yet ruled on the motion. No
      determination has been made that a class action can be maintained, and there
      have been no decisions on the merits of the cases. The Company intends to
      vigorously defend the consolidated lawsuit.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">On March
      1, 2007, a purported class action ERISA lawsuit was filed on behalf of
      participants in the Company&#8217;s 401(k) plans. The lawsuit was filed in the United
      States District Court for the Eastern District of Michigan and alleges that
      the
      Company, members of its Board of Directors, and members of the Employee Benefits
      Committee (collectively, the &#8220;Lear Defendants&#8221;) breached their fiduciary duties
      to the participants in the 401(k) plans by approving the Agreement and Plan
      of
      Merger (the &#8220;Merger Agreement&#8221;) with AREP Car Holdings Corp. and AREP Car
      Acquisition Corp. (collectively the &#8220;AREP Entities&#8221;). On March 8, 2007, the
      plaintiff filed a motion for expedited discovery to support a potential motion
      for preliminary injunction to enjoin the Merger Agreement. The Lear Defendants
      filed an opposition to the motion for expedited discovery on March 22, 2007.
      Plaintiff filed a reply on April 11, 2007. On April 18, 2007, the Judge denied
      plaintiff&#8217;s motion for expedited discovery. On March 15, 2007, the plaintiff
      requested that the case be reassigned to the Judge overseeing <i>In re: Lear
      Corp. ERISA Litigation</i> (described above). The Lear Defendants have opposed
      the reassignment. On March 22, 2007, the Lear Defendants filed a motion to
      dismiss all counts of the complaint against the Lear Defendants. Plaintiff
      also
      filed a motion for preliminary injunction and expedited briefing schedule on
      April 10, 2007. The Lear Defendants&#8217; opposition brief is due May 10, 2007. The
      Court has not set a hearing date on either of these motions. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Between
      February 9, 2007 and February 21, 2007, certain stockholders filed six purported
      class action lawsuits against the Company, certain members of the Company&#8217;s
      Board of Directors and American Real Estate Partners, L.P. and certain of its
      affiliates (collectively, &#8220;AREP&#8221;). Three of the lawsuits were filed in the
      Delaware Court of Chancery and have since been consolidated into a single
      action. Three of the lawsuits were filed in Michigan Circuit Court; those too
      have since been consolidated into a single action. The class action complaints,
      which are substantially similar, generally allege that the Merger Agreement
      unfairly limits the process of selling the Company and that certain members
      of
      the Company&#8217;s Board of Directors have breached their fiduciary duties in
      connection with the Merger Agreement and have acted with conflicts of interest
      in approving the Merger Agreement. The lawsuits seek to enjoin the merger,
      to
      invalidate the Merger Agreement and to enjoin the operation of certain
      provisions of the Merger Agreement, a declaration that certain members of the
      Company&#8217;s Board of Directors breached their fiduciary duties in approving the
      Merger Agreement and an award of unspecified damages or rescission in the event
      that the proposed merger with AREP is completed. On February 23, 2007, the
      plaintiffs in the consolidated Delaware action filed a consolidated amended
      complaint, a motion for expedited proceedings and a motion to preliminarily
      enjoin the transactions contemplated by the Merger Agreement. On March 27,
      2007,
      the plaintiffs in the consolidated Delaware action filed a consolidated second
      amended complaint. On May 9, 2007, the court overseeing the consolidated
      Michigan action will hear the Company&#8217;s motion to dismiss that action. A hearing
      on the plaintiffs&#8217; motion for preliminary injunction in the consolidated
      Delaware action is scheduled for June 6, 2007, and a trial is scheduled for
      the
      fourth quarter of 2007. The Company believes that the lawsuits are without
      merit
      and intends to defend against them vigorously.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Although
      the Company records reserves for legal, product warranty and environmental
      matters in accordance with SFAS No. 5, &#8220;Accounting for Contingencies,&#8221; the
      outcomes of these matters are inherently uncertain. Actual results may differ
      significantly from current estimates.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      Company is involved in certain other legal actions and claims arising in the
      ordinary course of business, including, without limitation, commercial disputes,
      intellectual property matters, personal injury claims, tax claims </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-84</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
</div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt" align="center"><strong>LEAR CORPORATION AND
      SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong>NOTES
      TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>(17) Legal and Other
      Contingencies &#8211; (continued)</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt">and employment matters.
      Although the outcome of any legal matter cannot be predicted with certainty,
      the
      Company does not believe that any of these other legal proceedings or matters
      in
      which the Company is currently involved, either individually or in the
      aggregate, will have a material adverse effect on its business, consolidated
      financial position, results of operations or cash flows.</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>(18) Segment
      Reporting</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Historically,
      the Company has had three reportable operating segments: seating, electronic
      and
      electrical and interior. The seating segment includes seat systems and
      components thereof. The electronic and electrical segment includes electronic
      products and electrical distribution systems, primarily wire harnesses and
      junction boxes, interior control and entertainment systems and wireless systems.
      The interior segment includes instrument panels and cockpit systems, headliners
      and overhead systems, door panels, flooring and acoustic systems and other
      interior products (Note 3, &#8220;Divestiture of Interior Business&#8221;). The Other
      category includes unallocated costs related to corporate headquarters,
      geographic headquarters and the elimination of intercompany activities, none
      of
      which meets the requirements of being classified as an operating segment.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 6.65pt; TEXT-INDENT: 18pt">The
      Company evaluates the performance of its operating segments based primarily
      on
      (i) revenues from external customers, (ii) income (loss) before loss on
      divestiture of interior business, interest expense, other (income) expense,
      provision (benefit) for income taxes and cumulative effect of a change in
      accounting principle (&#8220;segment earnings&#8221;) and (iii) cash flows, being defined as
      segment earnings less capital expenditures plus depreciation and amortization.
      A
      summary of revenues from external customers and other financial information
      by
      reportable operating segment is shown below (in millions):</div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="209">
            </td>
            <td width="13">
            </td>
            <td width="5">
            </td>
            <td width="31">
            </td>
            <td width="13">
            </td>
            <td width="7">
            </td>
            <td width="44">
            </td>
            <td width="13">
            </td>
            <td width="5">
            </td>
            <td width="23">
            </td>
            <td width="13">
            </td>
            <td width="5">
            </td>
            <td width="23">
            </td>
            <td width="13">
            </td>
            <td width="6">
            </td>
            <td width="40">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="279">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td colspan="14" valign="bottom" width="326" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Three
                Months Ended March 31,
                2007</strong></div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="279">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td colspan="2" valign="bottom" width="48" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Seating</strong></div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td colspan="2" valign="bottom" width="69" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Electronic
                and<br>Electrical</strong></div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td colspan="2" valign="bottom" width="38" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Interior</strong></div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td colspan="2" valign="bottom" width="38" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Other</strong></div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td colspan="2" valign="bottom" width="62" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Consolidated</strong></div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="279">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="41">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="59">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="31">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="31">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="53">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="279">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Revenues
                from external
                customers&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="41">
              <div style="MARGIN: 0pt" align="right">2,994.2</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="9">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="59">
              <div style="MARGIN: 0pt" align="right">788.7</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="31">
              <div style="MARGIN: 0pt" align="right">623.2</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="31">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="53">
              <div style="MARGIN: 0pt" align="right">4,406.1</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="279">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Segment
                earnings</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="41">
              <div style="MARGIN: 0pt" align="right">197.1</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="59">
              <div style="MARGIN: 0pt" align="right">17.5</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="31">
              <div style="MARGIN: 0pt" align="right">8.8</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="31">
              <div style="MARGIN: 0pt" align="right">(39.0</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="53">
              <div style="MARGIN: 0pt" align="right">184.4</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="279">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Depreciation
                and amortization</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="41">
              <div style="MARGIN: 0pt" align="right">40.8</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="59">
              <div style="MARGIN: 0pt" align="right">28.3</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="31">
              <div style="MARGIN: 0pt" align="right">1.3</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="31">
              <div style="MARGIN: 0pt" align="right">4.1</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="53">
              <div style="MARGIN: 0pt" align="right">74.5</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="279">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Capital
                expenditures</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="41">
              <div style="MARGIN: 0pt" align="right">20.2</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="59">
              <div style="MARGIN: 0pt" align="right">8.6</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="31">
              <div style="MARGIN: 0pt" align="right">0.1</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="31">
              <div style="MARGIN: 0pt" align="right">0.3</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="53">
              <div style="MARGIN: 0pt" align="right">29.2</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="279">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Total
                assets</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="41">
              <div style="MARGIN: 0pt" align="right">4,371.0</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="59">
              <div style="MARGIN: 0pt" align="right">2,277.7</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="31">
              <div style="MARGIN: 0pt" align="right">134.7</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="31">
              <div style="MARGIN: 0pt" align="right">877.6</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="53">
              <div style="MARGIN: 0pt" align="right">7,661.0</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="MARGIN: 0pt">&#160;</div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="210">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="30">
            </td>
            <td width="12">
            </td>
            <td width="7">
            </td>
            <td width="43">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="30">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="22">
            </td>
            <td width="12">
            </td>
            <td width="6">
            </td>
            <td width="38">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="280">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="14" valign="bottom" width="326" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Three
                Months Ended April 1, 2006</strong></div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="280">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="47" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Seating</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="67" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Electronic
                and<br>Electrical</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="47" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Interior</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="37" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Other</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="60" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Consolidated</strong></div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="280">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="57">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="30">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="280">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Revenues
                from external
                customers&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">2,992.5</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="9">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="57">
              <div style="MARGIN: 0pt" align="right">787.3</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">898.7</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="30">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">4,678.5</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="280">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Segment
                earnings</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">125.9</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="57">
              <div style="MARGIN: 0pt" align="right">53.1</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">(59.5</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="30">
              <div style="MARGIN: 0pt" align="right">(65.3</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">54.2</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="280">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Depreciation
                and amortization</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">40.4</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="57">
              <div style="MARGIN: 0pt" align="right">26.8</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">24.8</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="30">
              <div style="MARGIN: 0pt" align="right">5.8</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">97.8</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="280">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Capital
                expenditures</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">36.8</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="57">
              <div style="MARGIN: 0pt" align="right">15.7</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">33.1</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="30">
              <div style="MARGIN: 0pt" align="right">7.0</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">92.6</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="280">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Total
                assets</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">4,170.6</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="57">
              <div style="MARGIN: 0pt" align="right">2,178.1</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">1,511.1</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="30">
              <div style="MARGIN: 0pt" align="right">621.5</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">8,481.3</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">For the
      three months ended March 31, 2007, segment earnings include restructuring
      charges of ($4.7) million, $17.9 million and $0.4 million in the seating and
      electronic and electrical segments and in the other category, respectively.
      For
      the three months ended April 1, 2006, segment earnings include restructuring
      charges of $15.1 million, $2.0 million and $5.8 million in the seating,
      electronic and electrical and interior segments, respectively (Note 5,
&#8220;Restructuring&#8221;).</div>
    <div style="MARGIN: 0pt" align="center"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-85</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
</div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt" align="center"><strong>LEAR CORPORATION AND
      SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong>NOTES
      TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>(18) Segment Reporting
      &#8211; (continued)</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 6.65pt; TEXT-INDENT: 18pt">A
      reconciliation of consolidated segment earnings to consolidated income before
      provision (benefit) for income taxes and cumulative effect of a change in
      accounting principle is shown below (in millions):</div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="268">
            </td>
            <td width="12">
            </td>
            <td width="6">
            </td>
            <td width="28">
            </td>
            <td width="14">
            </td>
            <td width="5">
            </td>
            <td width="20">
            </td>
            <td width="3">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="357">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="5" valign="bottom" width="101" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Three
                Months Ended</strong></div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="357">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>March&#160;31,<br>2007</strong></div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td colspan="2" valign="bottom" width="35" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>April&#160;1,<br>2006</strong></div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="357">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="38">&#160;</td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="27">&#160;</td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="357">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Segment
                earnings</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="38">
              <div style="MARGIN: 0pt" align="right">184.4</div>
            </td>
            <td valign="bottom" width="19">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="27">
              <div style="MARGIN: 0pt" align="right">54.2</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="357">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Loss
                on divestiture of Interior
                business&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="38">
              <div style="MARGIN: 0pt" align="right">25.6</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="27">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="357">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Interest
                expense</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="38">
              <div style="MARGIN: 0pt" align="right">51.5</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="27">
              <div style="MARGIN: 0pt" align="right">47.7</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="357">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Other
                (income) expense, net</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="38" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">25.0</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="27" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(8.3</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="357">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Income
                before provision (benefit) for income taxes and cumulative<br>effect of a
                change in accounting principle</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="38" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">82.3</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="27" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">14.8</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: #ccffcc 3pt double;">&#160;</td>
          </tr>

      </table>
    </div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>(19) Financial
      Instruments</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Certain
      of the Company&#8217;s European and Asian subsidiaries periodically factor their
      accounts receivable with financial institutions. Such receivables are factored
      without recourse to the Company and are excluded from accounts receivable in
      the
      condensed consolidated balance sheets. As of March 31, 2007 and December 31,
      2006, the amount of factored receivables was $219.9 million and $256.3 million,
      respectively. The Company cannot provide any assurances that these factoring
      facilities will be available or utilized in the future.</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>Asset-Backed
      Securitization Facility</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      Company and several of its U.S. subsidiaries sell certain accounts receivable
      to
      a wholly-owned, consolidated, bankruptcy-remote special purpose corporation
      (Lear ASC Corporation) under an asset-backed securitization facility (the &#8220;ABS
      facility&#8221;). In turn, Lear ASC Corporation transfers undivided interests in up to
      $150 million of the receivables to bank-sponsored commercial-paper conduits.
      As
      of March 31, 2007 and December 31, 2006, accounts receivable totaling $445.4
      million and $568.6 million, respectively, had been transferred to Lear ASC
      Corporation, but no undivided interests in the receivables were transferred
      to
      the conduits. As such, these retained interests are included in accounts
      receivable in the condensed consolidated balance sheets as of March 31, 2007
      and
      December 31, 2006. In the first quarter of 2006, a discount on the sale of
      receivables of $1.6 million was recognized and is reflected in other (income)
      expense, net in the condensed consolidated statement of income.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      Company retains a subordinated ownership interest in the pool of receivables
      sold to Lear ASC Corporation. This retained interest is recorded at fair value,
      which is generally based on a discounted cash flow analysis. The Company
      continues to service the transferred receivables for an annual servicing fee.
      The conduit investors and Lear ASC Corporation have no recourse to the Company
      or its subsidiaries for the failure of the accounts receivable obligors to
      pay
      timely on the accounts receivable.</div>
    <div style="MARGIN: 0pt" align="center"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-86</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
</div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt" align="center"><strong>LEAR CORPORATION AND
      SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong>NOTES
      TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>(19) Financial
      Instruments &#8211; (continued)</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 6.65pt; TEXT-INDENT: 18pt">The
      following table summarizes certain cash flows received from and paid to Lear
      ASC
      Corporation (in millions):</div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="280">
            </td>
            <td width="12">
            </td>
            <td width="6">
            </td>
            <td width="28">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="30">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="374">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="5" valign="bottom" width="110" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Three
                Months Ended</strong></div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="374">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>March
                31,<br>2007</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>April
                1,<br>2006</strong></div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="374">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="38">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="374">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Proceeds
                from collections reinvested in
                securitizations&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="38">
              <div style="MARGIN: 0pt" align="right">932.7</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">1,071.6</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="374">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Servicing
                fees received</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="38">
              <div style="MARGIN: 0pt" align="right">1.2</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">1.5</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>Derivative
      Instruments and Hedging Activities</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Forward
      foreign exchange, futures and option contracts &#8212; The Company uses forward
      foreign exchange, futures and option contracts to reduce the effect of
      fluctuations in foreign exchange rates on short-term, foreign currency
      denominated intercompany transactions and other known foreign currency
      exposures. Gains and losses on the derivative instruments are intended to offset
      gains and losses on the hedged transaction in an effort to reduce the earnings
      volatility resulting from fluctuations in foreign exchange rates. The principal
      currencies hedged by the Company include the Mexican peso and the Hungarian
      forint, as well as the Euro and other European currencies. Forward foreign
      exchange, futures and option contracts are accounted for as cash flow hedges
      when the hedged item is a forecasted transaction or the variability of cash
      flows to be received or paid related to a recognized asset or liability. As
      of
      March 31, 2007, contracts designated as cash flow hedges with $380.4 million
      of
      notional amount were outstanding with maturities of less than nine months.
      As of
      March 31, 2007, the fair market value of these contracts was approximately
      $9.4
      million. As of March 31, 2007, other foreign currency derivative contracts
      that
      did not qualify for hedge accounting with $439.8 million of notional amount
      were
      outstanding. These foreign currency derivative contracts consist principally
      of
      cash transactions between three and thirty days, hedges of intercompany loans
      and hedges of certain other balance sheet exposures. As of March 31, 2007,
      the
      fair market value of these contracts was approximately $1.6 million.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Interest
      rate swap contracts &#8212; The Company uses interest rate swap contracts to manage
      its exposure to fluctuations in interest rates. Interest rate swap contracts
      which fix the interest payments of certain variable rate debt instruments or
      fix
      the market rate component of anticipated fixed rate debt instruments are
      accounted for as cash flow hedges. Interest rate swap contracts which hedge
      the
      change in fair market value of certain fixed rate debt instruments are accounted
      for as fair value hedges. As of March 31, 2007, contracts representing $800.0
      million of notional amount were outstanding with maturity dates of August 2007
      through September 2011. All of these contracts modify the variable rate
      characteristics of the Company&#8217;s variable rate debt instruments, which are
      generally set at three-month LIBOR rates. These contracts convert variable
      rate
      obligations into fixed rate obligations with a weighted average interest rate
      of
      4.902%. The fair market value of all outstanding interest rate swap contracts
      is
      subject to changes in value due to changes in interest rates. As of March 31,
      2007, the fair market value of these contracts was approximately negative $5.0
      million.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Commodity
      swap contracts &#8212; The Company uses derivative instruments including financially
      settled forward, swap and option contracts to manage its exposure to
      fluctuations in certain commodity prices. All derivative instruments are
      currently designated as cash flow hedges, as the hedged item is a forecasted
      transaction. Gains and losses on the derivative instruments are intended to
      offset gains and losses on the hedged transaction in an effort to reduce the
      earnings volatility resulting from fluctuations in commodity prices. As of
      March
      31, 2007, the fair market value of these commodity instruments was $1.1 million
      with maturity dates through December 2008.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">As of
      March 31, 2007 and December 31, 2006, net gains of approximately $9.8 million
      and $14.7 million, respectively, related to derivative instruments and hedging
      activities were recorded in accumulated other comprehensive loss. In the three
      months ended March 31, 2007 and April 1, 2006, net gains of $3.6 million and
      $1.6 million, respectively, related to the Company&#8217;s hedging activities were
      reclassified from accumulated other comprehensive loss into earnings. During
      the
      twelve month period ending March 29, 2008, the Company expects to reclassify
      into earnings net gains of approximately $11.5 million recorded in accumulated
      other comprehensive loss. </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-87</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
</div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt" align="center"><strong>LEAR CORPORATION AND
      SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong>NOTES
      TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>(19) Financial
      Instruments &#8211; (continued)</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt">Such gains will be
      reclassified at the time the underlying hedged transactions are realized. During
      the three months ended March 31, 2007 and April 1, 2006, amounts recognized
      in
      the condensed consolidated statements of income related to changes in the fair
      value of cash flow and fair value hedges excluded from the effectiveness
      assessments and the ineffective portion of changes in the fair value of cash
      flow and fair value hedges were not material.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Non-U.S.
      dollar financing transactions &#8212; The Company designated its previously
      outstanding Euro-denominated senior notes (Note 9, &#8220;Long-Term Debt&#8221;) as a net
      investment hedge of long-term investments in its Euro-functional subsidiaries.
      As of March 31, 2007, the amount recorded in accumulated other comprehensive
      loss related to the effective portion of the net investment hedge of foreign
      operations was approximately negative $148.0 million. Such amount will be
      included in accumulated other comprehensive loss until the Company liquidates
      its related net investment in its designated foreign operations.</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>(20) Accounting
      Pronouncements</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>Financial
      Instruments</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The FASB
      issued SFAS No. 155, &#8220;Accounting for Certain Hybrid Financial Instruments &#8212; an
      amendment of FASB Statements No. 133 and 140.&#8221; This statement resolves issues
      related to the application of SFAS No. 133, &#8220;Accounting for Derivative
      Instruments and Hedging Activities,&#8221; to beneficial interests in securitized
      assets. The provisions of this statement are to be applied prospectively to
      all
      financial instruments acquired or issued during fiscal years beginning after
      September 15, 2006. The effects of adoption were not significant.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The FASB
      issued SFAS No. 156, &#8220;Accounting for Servicing of Financial Assets &#8212; an
      amendment of FASB Statement No. 140.&#8221; This statement requires that all servicing
      assets and liabilities be initially measured at fair value. The provisions
      of
      this statement are to be applied prospectively to all servicing transactions
      beginning after September 15, 2006. The effects of adoption were not
      significant.</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>Fair Value
      Measurements</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The FASB
      issued SFAS No. 157, &#8220;Fair Value Measurements.&#8221; This statement defines fair
      value, establishes a framework for measuring fair value and expands disclosures
      about fair value measurements. The provisions of this statement are to generally
      be applied prospectively in fiscal years beginning after November 15, 2007.
      The
      Company is currently evaluating the impact of this statement on its financial
      statements.</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>Pension and Other
      Postretirement Benefits</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The FASB
      issued SFAS No. 158, &#8220;Employers&#8217; Accounting for Defined Benefit Pension and
      Other Postretirement Plans &#8212; an amendment of FASB Statements No. 87, 88, 106 and
      132(R).&#8221; The Company adopted the funded status recognition provisions of SFAS
      No. 158 as of December 31, 2006.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">This
      statement also requires the measurement of defined benefit plan asset and
      liabilities as of the annual balance sheet date. Currently, the Company measures
      its plan assets and liabilities using an early measurement date of September
      30,
      as allowed by the original provisions of SFAS No. 87, &#8220;Employers&#8217; Accounting for
      Pensions,&#8221; and SFAS No. 106, &#8220;Employers&#8217; Accounting for Postretirement Benefits
      Other Than Pensions.&#8221; The measurement date provisions of SFAS No. 158 are
      effective for fiscal years ending after December 15, 2008. The Company is
      currently evaluating the measurement date provisions of this statement.</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>Fair Value
      Option</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The FASB
      issued SFAS No. 159, &#8220;The Fair Value Option for Financial Assets and Financial
      Liabilities &#8211; including an amendment of FASB Statement No. 115.&#8221; This statement
      allows entities to measure eligible financial instruments and certain other
      items at fair value that are not currently required to be measured at fair
      value. The </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-88</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
</div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt" align="center"><strong>LEAR CORPORATION AND
      SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong>NOTES
      TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong>(20) Accounting
      Pronouncements &#8211; (continued)</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt">provisions of this statement
      are effective as of the beginning of an entity&#8217;s first fiscal year beginning
      after November&#160;15, 2007. The Company is currently evaluating the impact of
      this statement on its financial statements.</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 6.65pt"><strong>(21) Supplemental
      Guarantor Condensed Consolidating Financial Statements</strong></div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="203">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="30">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="34">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="33">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="37">
            </td>
            <td width="12">
            </td>
            <td width="6">
            </td>
            <td width="38">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="271">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="14" valign="bottom" width="335" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>March
                31, 2007</strong></div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="271">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Parent</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="53" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Guarantors</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="51" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Non-<br>guarantors</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="58" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Eliminations</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="59" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Consolidated</strong></div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="271">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="14" valign="bottom" width="335">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center">(unaudited;
                in millions)</div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="271">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt" align="center"><strong>ASSETS</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="271">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Current
                Assets:</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="271">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Cash
                and cash equivalents</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">100.0</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">6.2</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">224.2</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">330.4</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="271">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Accounts
                receivable</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">26.5</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">333.9</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">2,052.3</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">2,412.7</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="271">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Inventories</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">14.5</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">128.7</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">455.8</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">599.0</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="271">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Current
                assets of business held for sale</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">38.3</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">38.3</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="271">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Other</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">33.8</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="45" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">19.8</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">264.0</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="51" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">317.6</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="271">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 30pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Total
                current assets</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">174.8</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="45" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">488.6</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">3,034.6</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="51" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">3,698.0</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="271">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Long-Term
                Assets:</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="271">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Property,
                plant and equipment, net</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">199.4</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">284.9</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">941.6</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">1,425.9</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="271">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Goodwill,
                net</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">454.5</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">551.1</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">1,001.0</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">2,006.6</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="271">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Investments
                in subsidiaries</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">3,890.6</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">2,343.1</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">(6,233.7</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="271">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Other</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">237.8</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="45" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">24.4</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">268.3</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="51" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">530.5</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="271">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 30pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Total
                long-term assets</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">4,782.3</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="45" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">3,203.5</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">2,210.9</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(6,233.7</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="51" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">3,963.0</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="271">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="40" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">4,957.1</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="45" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">3,692.1</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="44" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">5,245.5</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="50" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">(6,233.7</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="51" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">7,661.0</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="271">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt" align="center"><strong>LIABILITIES
                AND STOCKHOLDERS&#8217;
EQUITY</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="271">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Current
                Liabilities:</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="271">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Short-term
                borrowings</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">11.5</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">11.5</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="271">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Accounts
                payable and drafts</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">148.0</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">399.5</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">1,932.8</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">2,480.3</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="271">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Accrued
                liabilities</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">310.7</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">193.9</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">648.2</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">1,152.8</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="271">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Current
                liabilities of business held for sale</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">16.7</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">16.7</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="271">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Current
                portion of long-term debt</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">6.0</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="45" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">20.4</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="51" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">26.4</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="271">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 30pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Total
                current liabilities</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">464.7</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="45" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">593.4</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">2,629.6</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="51" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">3,687.7</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="271">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Long-Term
                Liabilities:</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="271">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Long-term
                debt</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">2,411.2</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">20.6</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">2,431.8</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="271">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Long-term
                liabilities of business held for sale</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">21.6</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">21.6</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="271">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Intercompany
                accounts, net</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">1,219.6</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">604.0</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">(1,823.6</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="271">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Other</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">169.1</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="45" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">170.6</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">487.7</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="51" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">827.4</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="271">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 30pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Total
                long-term liabilities</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">3,799.9</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="45" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">774.6</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(1,293.7</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="51" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">3,280.8</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="271">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Stockholders&#8217;
                Equity</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">692.5</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="45" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">2,324.1</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">3,909.6</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(6,233.7</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="51" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">692.5</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="271">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="40" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">4,957.1</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="45" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">3,692.1</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="44" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">5,245.5</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="50" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">(6,233.7</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="51" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">7,661.0</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="MARGIN: 0pt" align="center"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-89</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
</div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt" align="center"><strong>LEAR CORPORATION AND
      SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong>NOTES
      TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 6.65pt"><strong>(21) Supplemental
      Guarantor Condensed Consolidating Financial Statements &#8211;
(continued)</strong></div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="190">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="30">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="34">
            </td>
            <td width="12">
            </td>
            <td width="6">
            </td>
            <td width="44">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="37">
            </td>
            <td width="12">
            </td>
            <td width="6">
            </td>
            <td width="38">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="254">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="14" valign="bottom" width="353" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>December
                31, 2006</strong></div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="254">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Parent</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="53" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Guarantors</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="68" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Non-guarantors</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="58" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Eliminations</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="59" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Consolidated</strong></div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="254">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="14" valign="bottom" width="353">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center">(in
                millions)</div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="254">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt" align="center"><strong>ASSETS</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="59">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="254">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Current
                Assets:</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="59">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="254">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Cash
                and cash equivalents</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">195.8</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">4.0</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="9">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="59">
              <div style="MARGIN: 0pt" align="right">302.9</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">502.7</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="254">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Accounts
                receivable</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">12.7</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">243.5</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="59">
              <div style="MARGIN: 0pt" align="right">1,750.7</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">2,006.9</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="254">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Inventories</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">15.2</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">136.9</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="59">
              <div style="MARGIN: 0pt" align="right">429.4</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">581.5</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="254">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Current
                assets of business held for sale</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">77.1</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">217.1</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="59">
              <div style="MARGIN: 0pt" align="right">133.6</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">427.8</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="254">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Other</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">45.9</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="45" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">29.9</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="59" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">295.6</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="51" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">371.4</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="254">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 30pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Total
                current assets</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">346.7</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="45" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">631.4</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="59" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">2,912.2</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="51" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">3,890.3</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="254">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Long-Term
                Assets:</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="59">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="254">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Property,
                plant and equipment, net</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">230.9</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">284.1</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="59">
              <div style="MARGIN: 0pt" align="right">956.7</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">1,471.7</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="254">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Goodwill,
                net</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">454.5</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">551.1</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="59">
              <div style="MARGIN: 0pt" align="right">991.1</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">1,996.7</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="254">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Investments
                in subsidiaries</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">3,691.2</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">3,257.4</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="59">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">(6,948.6</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="254">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Other</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">233.7</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="45" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">24.1</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="59" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">234.0</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="51" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">491.8</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="254">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 30pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Total
                long-term assets</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">4,610.3</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="45" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">4,116.7</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="59" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">2,181.8</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(6,948.6</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="51" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">3,960.2</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="254">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="40" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">4,957.0</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="45" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">4,748.1</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="59" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">5,094.0</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="50" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">(6,948.6</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="51" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">7,850.5</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="254">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt" align="center"><strong>LIABILITIES
                AND
                STOCKHOLDERS&#8217;<br>EQUITY</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="59">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="254">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Current
                Liabilities:</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="59">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="254">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Short-term
                borrowings</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="59">
              <div style="MARGIN: 0pt" align="right">39.3</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">39.3</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="254">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Accounts
                payable and drafts</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">157.0</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">395.7</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="59">
              <div style="MARGIN: 0pt" align="right">1,764.7</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">2,317.4</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="254">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Accrued
                liabilities</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">322.3</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">145.8</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="59">
              <div style="MARGIN: 0pt" align="right">631.2</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">1,099.3</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="254">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Current
                liabilities of business held for sale</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">60.4</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">226.1</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="59">
              <div style="MARGIN: 0pt" align="right">119.2</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">405.7</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="254">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Current
                portion of long-term debt</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">6.0</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="45" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="59" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">19.6</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="51" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">25.6</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="254">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 30pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Total
                current liabilities</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">545.7</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="45" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">767.6</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="59" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">2,574.0</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="51" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">3,887.3</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="254">
              <div style="MARGIN-TOP: 1.65pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 10.35pt">Long-Term
                Liabilities:</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="59">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="254">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Long-term
                debt</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">2,413.2</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="59">
              <div style="MARGIN: 0pt" align="right">21.3</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">2,434.5</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="254">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Long-term
                liabilities of business held for sale</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">0.1</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="59">
              <div style="MARGIN: 0pt" align="right">48.4</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">48.5</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="254">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Intercompany
                accounts, net</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">1,193.7</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">503.1</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="59">
              <div style="MARGIN: 0pt" align="right">(1,696.8</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="254">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Other</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">202.4</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="45" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">176.5</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="59" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">499.3</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="51" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">878.2</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="254">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 30pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Total
                long-term liabilities</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">3,809.3</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="45" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">679.7</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="59" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(1,127.8</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="51" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">3,361.2</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="254">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Stockholders&#8217;
                Equity</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">602.0</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="45" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">3,300.8</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="59" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">3,647.8</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(6,948.6</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="51" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">602.0</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="254">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="40" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">4,957.0</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="45" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">4,748.1</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="59" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">5,094.0</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="50" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">(6,948.6</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="51" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">7,850.5</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="MARGIN: 0pt" align="center"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-90</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
</div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt" align="center"><strong>LEAR CORPORATION AND
      SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong>NOTES
      TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 6.65pt"><strong>(21) Supplemental
      Guarantor Condensed Consolidating Financial Statements &#8211;
(continued)</strong></div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="199">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="23">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="35">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="33">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="39">
            </td>
            <td width="16">
            </td>
            <td width="6">
            </td>
            <td width="39">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="266">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td colspan="14" valign="bottom" width="340" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>For
                the Three Months Ended March 31,
                2007</strong></div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="266">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td colspan="2" valign="bottom" width="37" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Parent</strong></div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td colspan="2" valign="bottom" width="55" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Guarantors</strong></div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td colspan="2" valign="bottom" width="52" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Non-<br>guarantors</strong></div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td colspan="2" valign="bottom" width="60" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Eliminations</strong></div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td colspan="2" valign="bottom" width="61" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Consolidated</strong></div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="266">&#160;</td>
            <td valign="bottom" width="17">&#160;</td>
            <td colspan="14" valign="bottom" width="340">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center">(unaudited;
                in millions)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="266">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Net
                sales</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="31">
              <div style="MARGIN: 0pt" align="right">288.3</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="47">
              <div style="MARGIN: 0pt" align="right">1,525.5</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">3,614.7</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">(1,022.4</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">4,406.1</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="266">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Cost
                of sales</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="31">
              <div style="MARGIN: 0pt" align="right">298.9</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="47">
              <div style="MARGIN: 0pt" align="right">1,499.1</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">3,319.6</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">(1,022.4</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">4,095.2</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="266">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Selling,
                general and administrative
                expenses&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="31">
              <div style="MARGIN: 0pt" align="right">34.1</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="47">
              <div style="MARGIN: 0pt" align="right">14.0</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">78.4</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">126.5</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="266">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Loss
                on divestiture of Interior business</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="31">
              <div style="MARGIN: 0pt" align="right">(17.2</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="47">
              <div style="MARGIN: 0pt" align="right">28.2</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">14.6</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">25.6</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="266">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Interest
                expense</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="31">
              <div style="MARGIN: 0pt" align="right">21.8</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="47">
              <div style="MARGIN: 0pt" align="right">28.3</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">1.4</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">51.5</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="266">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Intercompany
                (income) expense, net</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="31">
              <div style="MARGIN: 0pt" align="right">(79.6</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="47">
              <div style="MARGIN: 0pt" align="right">16.8</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">62.8</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="266">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Other
                expense, net</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="31" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">2.0</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="47" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">10.0</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">13.0</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="52" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="52" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">25.0</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="266">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Income
                (loss) before income taxes and<br>equity in net income of
                subsidiaries</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="31">
              <div style="MARGIN: 0pt" align="right">28.3</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="47">
              <div style="MARGIN: 0pt" align="right">(70.9</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">124.9</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">82.3</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="266">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Provision
                (benefit) for income taxes</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="31">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="47">
              <div style="MARGIN: 0pt" align="right">(9.8</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="44">
              <div style="MARGIN: 0pt" align="right">42.2</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="52">
              <div style="MARGIN: 0pt" align="right">32.4</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="266">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Equity
                in net income of subsidiaries</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="31" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(21.6</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="47" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(5.9</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="44" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="52" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">27.5</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="52" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="266">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Net
                income (loss)</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="31" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">49.9</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="47" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">(55.2</div>
            </td>
            <td valign="bottom" width="17">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="44" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">82.7</div>
            </td>
            <td valign="bottom" width="17">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="52" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">(27.5</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="52" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">49.9</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="MARGIN: 0pt">&#160;</div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="201">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="25">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="34">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="32">
            </td>
            <td width="12">
            </td>
            <td width="7">
            </td>
            <td width="36">
            </td>
            <td width="15">
            </td>
            <td width="6">
            </td>
            <td width="38">
            </td>
            <td width="3">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="268">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="14" valign="bottom" width="334" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>For
                the Three Months Ended April 1,
                2006</strong></div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="268">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="41" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Parent</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="53" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Guarantors</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Non-<br>guarantors</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="58" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Eliminations</strong></div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td colspan="2" valign="bottom" width="59" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Consolidated</strong></div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="268">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="14" valign="bottom" width="334">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center">(unaudited;
                in millions)</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="268">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Net
                sales</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">475.6</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">1,889.0</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="7">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="43">
              <div style="MARGIN: 0pt" align="right">3,152.5</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="9">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="48">
              <div style="MARGIN: 0pt" align="right">(838.6</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">4,678.5</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="268">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Cost
                of sales</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">500.6</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">1,850.8</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="43">
              <div style="MARGIN: 0pt" align="right">2,946.5</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="48">
              <div style="MARGIN: 0pt" align="right">(838.6</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">4,459.3</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="268">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Selling,
                general and administrative
                expenses&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">59.4</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">27.3</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="43">
              <div style="MARGIN: 0pt" align="right">78.3</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="48">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">165.0</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="268">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Interest
                expense</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">15.1</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">23.5</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="43">
              <div style="MARGIN: 0pt" align="right">9.1</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="48">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">47.7</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="268">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Intercompany
                (income) expense, net</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">(131.8</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">87.5</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="43">
              <div style="MARGIN: 0pt" align="right">44.3</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="48">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="268">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Other
                (income) expense, net</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="34" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(31.3</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="45" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">12.0</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="43" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">11.0</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="48" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="51" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(8.3</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: white 0.5pt solid;">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="268">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Income
                (loss) before income taxes, equity<br>in net (income) loss of subsidiaries
                and<br>cumulative effect of a change in<br>accounting principle</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">63.6</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">(112.1</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="43">
              <div style="MARGIN: 0pt" align="right">63.3</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="48">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">14.8</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="268">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Provision
                (benefit) for income taxes</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">(2.9</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">1.7</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="43">
              <div style="MARGIN: 0pt" align="right">1.0</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="48">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">(0.2</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="268">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Equity
                in net (income) loss of subsidiaries</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="34" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">51.5</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="45" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(41.2</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="43" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="48" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(10.3</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="51" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: #ccffcc 0.5pt solid;">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="268">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Income
                (loss) before cumulative effect<br>of a change in accounting
                principle</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">15.0</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="45">
              <div style="MARGIN: 0pt" align="right">(72.6</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7">&#160;</td>
            <td valign="bottom" width="43">
              <div style="MARGIN: 0pt" align="right">62.3</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="48">
              <div style="MARGIN: 0pt" align="right">10.3</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="51">
              <div style="MARGIN: 0pt" align="right">15.0</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="268">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Cumulative
                effect of a change in accounting<br>principle</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="34" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">2.9</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="45" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="43" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="48" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="51" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">2.9</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="268">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Net
                income</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="34" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">17.9</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="7" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="45" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">(72.6</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="7" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="43" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">62.3</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="48" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">10.3</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="51" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">17.9</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: white 3pt double;">&#160;</td>
          </tr>

      </table>
    </div>
    <div style="MARGIN: 0pt" align="center"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-91</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
</div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt" align="center"><strong>LEAR CORPORATION AND
      SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong>NOTES
      TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 6.65pt"><strong>(21) Supplemental
      Guarantor Condensed Consolidating Financial Statements &#8211;
(continued)</strong></div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="195">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="26">
            </td>
            <td width="12">
            </td>
            <td width="7">
            </td>
            <td width="32">
            </td>
            <td width="16">
            </td>
            <td width="6">
            </td>
            <td width="31">
            </td>
            <td width="16">
            </td>
            <td width="14">
            </td>
            <td width="29">
            </td>
            <td width="12">
            </td>
            <td width="7">
            </td>
            <td width="38">
            </td>
            <td width="3">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="260">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="14" valign="bottom" width="341" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>For
                the Three Months Ended March 31,
                2007</strong></div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="260">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="41" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Parent</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="53" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Guarantors</strong></div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td colspan="2" valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Non-<br>guarantors</strong></div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td colspan="2" valign="bottom" width="58" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Eliminations</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="60" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Consolidated</strong></div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="260">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="14" valign="bottom" width="341">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center">(unaudited;
                in millions)</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="260">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Net
                cash used in operating activities</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">15.2</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="10">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="43">
              <div style="MARGIN: 0pt" align="right">(54.2</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="9">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="41">
              <div style="MARGIN: 0pt" align="right">(2.8</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="19">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="39">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="9">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">(41.8</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="260">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt"><strong>Cash
                Flows from Investing Activities:</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="34">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="43">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="41">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="39">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="50">&#160;</td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="260">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Additions
                to property, plant and<br>equipment</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">(2.8</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="43">
              <div style="MARGIN: 0pt" align="right">(17.7</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="41">
              <div style="MARGIN: 0pt" align="right">(8.7</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="39">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">(29.2</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="260">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Divestiture
                of Interior business</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">(6.5</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="43">
              <div style="MARGIN: 0pt" align="right">(12.9</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="41">
              <div style="MARGIN: 0pt" align="right">(37.9</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="39">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">(57.3</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="260">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Other,
                net</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="34" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">0.6</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="10" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="43" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">0.3</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="9" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="41" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(29.5</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="19" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="39" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(28.6</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: #ccffcc 0.5pt solid;">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="260">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Net
                cash used in investing activities</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="34" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(8.7</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="10" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="43" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(30.3</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="9" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="41" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(76.1</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="19" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="39" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(115.1</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: white 0.5pt solid;">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="260">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt"><strong>Cash
                Flows from Financing Activities:</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="34">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="43">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="41">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="39">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="50">&#160;</td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="260">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Long-term
                debt repayments, net</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">(2.9</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="43">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="41">
              <div style="MARGIN: 0pt" align="right">(0.7</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="39">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">(3.6</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="260">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Short-term
                debt repayments, net</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="43">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="41">
              <div style="MARGIN: 0pt" align="right">(11.0</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="39">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">(11.0</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="260">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Proceeds
                from exercise of stock options</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">5.7</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="43">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="41">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="39">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">5.7</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="260">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Decrease
                in drafts</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">(1.0</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="43">
              <div style="MARGIN: 0pt" align="right">(2.5</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="41">
              <div style="MARGIN: 0pt" align="right">(10.0</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="39">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN: 0pt" align="right">(13.5</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="260">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Change
                in intercompany accounts</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="34" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(104.1</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="10" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="43" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">86.5</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="9" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="41" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">17.6</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="19" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="39" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: white 0.5pt solid;">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="260">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Net
                cash used in financing activities</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="34" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt" align="right">(102.3</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">)</div>
            </td>
            <td valign="bottom" width="10" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="43" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt" align="right">84.0</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="9" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="41" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt" align="right">(4.1</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">)</div>
            </td>
            <td valign="bottom" width="19" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="39" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt" align="right">(22.4</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="260">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Effect
                of foreign currency
                translation&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="34" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="10" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="43" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">2.7</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="9" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="41" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">4.3</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="19" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="39" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">7.0</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="260">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt"><strong>Net
                Change in Cash and Cash<br>Equivalents</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt" align="right">(95.8</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">)</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="43">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt" align="right">2.2</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="41">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt" align="right">(78.7</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">)</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="39">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="50">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt" align="right">(172.3</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="260">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt"><strong>Cash
                and Cash Equivalents as of<br>Beginning of Period</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="34" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">195.8</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="10" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="43" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">4.0</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="9" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="41" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">302.9</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="19" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="39" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">502.7</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="260">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt"><strong>Cash
                and Cash Equivalents as of<br>End of Period</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="34" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">100.0</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="10" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="43" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">6.2</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="9" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="41" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">224.2</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="19" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="39" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="9" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="50" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">330.4</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: #ccffcc 3pt double;">&#160;</td>
          </tr>

      </table>
    </div>
    <div style="MARGIN: 0pt" align="center"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-92</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
</div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt" align="center"><strong>LEAR CORPORATION AND
      SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong>NOTES
      TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 6.65pt"><strong>(21) Supplemental
      Guarantor Condensed Consolidating Financial Statements &#8211;
(continued)</strong></div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="198">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="25">
            </td>
            <td width="12">
            </td>
            <td width="7">
            </td>
            <td width="32">
            </td>
            <td width="15">
            </td>
            <td width="6">
            </td>
            <td width="30">
            </td>
            <td width="15">
            </td>
            <td width="14">
            </td>
            <td width="29">
            </td>
            <td width="12">
            </td>
            <td width="8">
            </td>
            <td width="36">
            </td>
            <td width="3">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="264">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="14" valign="bottom" width="338" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>For
                the Three Months Ended April 1,
                2006</strong></div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="264">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="41" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Parent</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="53" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Guarantors</strong></div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td colspan="2" valign="bottom" width="50" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Non-<br>guarantors</strong></div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td colspan="2" valign="bottom" width="58" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Eliminations</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="59" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Consolidated</strong></div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="264">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="14" valign="bottom" width="338">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center">(unaudited;
                in millions)</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="264">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Net
                cash provided by operating activities</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">154.7</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="10">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="43">
              <div style="MARGIN: 0pt" align="right">(41.3</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="9">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="41">
              <div style="MARGIN: 0pt" align="right">(74.0</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="19">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="38">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="10">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="49">
              <div style="MARGIN: 0pt" align="right">39.4</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="264">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt"><strong>Cash
                Flows from Investing Activities:</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="34">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="43">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="41">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="38">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="49">&#160;</td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="264">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Additions
                to property, plant and equipment</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">(14.4</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="43">
              <div style="MARGIN: 0pt" align="right">(30.6</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="41">
              <div style="MARGIN: 0pt" align="right">(47.6</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="38">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="49">
              <div style="MARGIN: 0pt" align="right">(92.6</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="264">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Other,
                net</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="34" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">31.2</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="10" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="43" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(3.0</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="9" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="41" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(0.3</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="19" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="38" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="10" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="49" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">27.9</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: white 0.5pt solid;">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="264">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Net
                cash used in investing activities</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="34" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt" align="right">16.8</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="10" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="43" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt" align="right">(33.6</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">)</div>
            </td>
            <td valign="bottom" width="9" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="41" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt" align="right">(47.9</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">)</div>
            </td>
            <td valign="bottom" width="19" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="38" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="10" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="49" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt" align="right">(64.7</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: #ccffcc 0.5pt solid;">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="264">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt"><strong>Cash
                Flows from Financing Activities:</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="34">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="43">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="41">&#160;</td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="38">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="49">&#160;</td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="264">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Long-term
                debt repayments, net</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">(2.1</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="43">
              <div style="MARGIN: 0pt" align="right">(0.1</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="41">
              <div style="MARGIN: 0pt" align="right">(3.9</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="38">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="49">
              <div style="MARGIN: 0pt" align="right">(6.1</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="264">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Dividends
                paid</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">(16.8</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="43">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="41">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="38">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="49">
              <div style="MARGIN: 0pt" align="right">(16.8</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="264">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Increase
                in drafts</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">7.6</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="43">
              <div style="MARGIN: 0pt" align="right">(0.6</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="41">
              <div style="MARGIN: 0pt" align="right">(5.9</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="38">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="49">
              <div style="MARGIN: 0pt" align="right">1.1</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="264">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Change
                in intercompany accounts</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="34" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(152.5</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="10" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="43" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">78.3</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="9" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="41" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">74.2</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="19" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="38" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="10" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="49" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: white 0.5pt solid;">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="264">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10pt">Net
                cash used in financing activities</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="34" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(163.8</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="10" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="43" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">77.6</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="9" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="41" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">64.4</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="19" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="38" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="10" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="49" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(21.8</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: #ccffcc 0.5pt solid;">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="264">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt">Effect
                of foreign currency translation</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="34" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="10" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="43" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt" align="right">3.7</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="9" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="41" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt" align="right">7.0</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="19" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="38" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="10" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="49" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -18pt" align="right">10.7</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="264">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt"><strong>Net
                Change in Cash and Cash Equivalents</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="34">
              <div style="MARGIN: 0pt" align="right">7.7</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="43">
              <div style="MARGIN: 0pt" align="right">6.4</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="9">&#160;</td>
            <td valign="bottom" width="41">
              <div style="MARGIN: 0pt" align="right">(50.5</div>
            </td>
            <td valign="bottom" width="21">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="19">&#160;</td>
            <td valign="bottom" width="38">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="10">&#160;</td>
            <td valign="bottom" width="49">
              <div style="MARGIN: 0pt" align="right">(36.4</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="264">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt"><strong>Cash
                and Cash Equivalents as of Beginning of Period</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="34" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">38.6</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="10" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="43" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">4.8</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="9" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="41" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">164.2</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="19" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="38" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="10" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="49" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">207.6</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="264">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt"><strong>Cash
                and Cash Equivalents as of End of Period</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="34" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">46.3</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="10" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="43" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">11.2</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="9" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="41" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">113.7</div>
            </td>
            <td valign="bottom" width="21">&#160;</td>
            <td valign="bottom" width="19" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="38" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">&#8212;</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="10" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="49" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">171.2</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: #ccffcc 3pt double;">&#160;</td>
          </tr>

      </table>
    </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Basis
      of
      Presentation &#8212; Certain of the Company&#8217;s wholly-owned subsidiaries (the
&#8220;Guarantors&#8221;) have unconditionally fully guaranteed, on a joint and several
      basis, the punctual payment when due, whether at stated maturity, by
      acceleration or otherwise, of all of the Company&#8217;s obligations under the Primary
      Credit Facility and the indentures governing the Company&#8217;s senior notes,
      including the Company&#8217;s obligations to pay principal, premium, if any, and
      interest with respect to the senior notes. The senior notes consist of $300
      million aggregate principal amount of 8.50% senior notes due 2013, $600 million
      aggregate principal amount of 8.75% senior notes due 2016, $399 million
      aggregate principal amount of 5.75% senior notes due 2014, Euro 56 million
      aggregate principal amount of 8.125% senior notes due 2008, $41 million
      aggregate principal amount of 8.11% senior notes due 2009 and $1 million
      aggregate principal amount of zero-coupon convertible senior notes due 2022.
      The
      Guarantors under the indentures are currently Lear Automotive Dearborn, Inc.,
      Lear Automotive (EEDS) Spain S.L., Lear Corporation EEDS and Interiors, Lear
      Corporation (Germany) Ltd., Lear Corporation Mexico, S. de R.L. de C.V., Lear
      Operations Corporation and Lear Seating Holdings Corp. #50. Lear Automotive
      Dearborn, Inc. became a Guarantor under the indentures effective April 25,
      2006.
      In lieu of providing separate audited financial statements for the Guarantors,
      the Company has included the audited supplemental guarantor condensed
      consolidating financial statements above. These financial statements reflect
      the
      guarantors listed above for all periods presented. Management does not believe
      that separate financial statements of the Guarantors are material to investors.
      Therefore, separate financial statements and other disclosures concerning the
      Guarantors are not presented.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">As of
      December 31, 2006 and for the three months ended April 1, 2006, the supplemental
      guarantor condensed consolidating financial statements have been restated to
      reflect certain changes to the equity investments of guarantor
      subsidiaries.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Distributions
      &#8212; There are no significant restrictions on the ability of the Guarantors to make
      distributions to the Company.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Selling,
      General and Administrative Expenses &#8212; During the three months ended March 31,
      2007 and April 1, 2006, the Parent allocated $2.5 million and $12.9 million,
      respectively, of corporate selling, general and administrative expenses to
      its
      operating subsidiaries. The allocations were based on various factors, which
      estimate </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-93</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt">
  <p align="left"><strong><a href="#15">Back to Index</a></strong></p>
  <p></p>
</div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt" align="center"><strong>LEAR CORPORATION AND
      SUBSIDIARIES</strong></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong>NOTES
      TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 6.65pt"><strong>(21) Supplemental
      Guarantor Condensed Consolidating Financial Statements &#8211;
(continued)</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt">usage of particular
      corporate functions, and in certain instances, other relevant factors, such
      as
      the revenues or the number of employees of the Company&#8217;s subsidiaries.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 6.65pt; TEXT-INDENT: 18pt">Long-term
      debt of the Parent and the Guarantors &#8212; A summary of long-term debt of the
      Parent and the Guarantors on a combined basis is shown below (in
      millions):</div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="239">
            </td>
            <td width="12">
            </td>
            <td width="5">
            </td>
            <td width="30">
            </td>
            <td width="12">
            </td>
            <td width="6">
            </td>
            <td width="40">
            </td>
            <td width="3">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="319">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="46" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>March
                31,<br>2007</strong></div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td colspan="2" valign="bottom" width="62" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>December
                31,<br>2006</strong></div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="319">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="53">&#160;</td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="319">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Amended
                and restated primary credit
                facility&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="6">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">997.0</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="bottom" width="8">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="53">
              <div style="MARGIN: 0pt" align="right">997.0</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="319">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Senior
                notes</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN: 0pt" align="right">1,415.7</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="53">
              <div style="MARGIN: 0pt" align="right">1,417.6</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="319">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Other
                long-term debt</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">4.5</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="53" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">4.6</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: #ccffcc 0.5pt solid;">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="319">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6">&#160;</td>
            <td valign="bottom" width="40">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt" align="right">2,417.2</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8">&#160;</td>
            <td valign="bottom" width="53">
              <div style="MARGIN: 0pt" align="right">2,419.2</div>
            </td>
            <td valign="bottom" width="4">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="319">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Less
                &#8212; current portion</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="40" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(6.0</div>
            </td>
            <td valign="bottom" width="16">
              <div style="MARGIN: 0pt">)</div>
            </td>
            <td valign="bottom" width="8" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="53" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">(6.0</div>
            </td>
            <td valign="bottom" width="4">
              <div style="MARGIN: 0pt">)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="319">&#160;</td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="6" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">$</div>
            </td>
            <td valign="bottom" width="40" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">2,411.2</div>
            </td>
            <td valign="bottom" width="16">&#160;</td>
            <td valign="bottom" width="8" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="53" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">2,413.2</div>
            </td>
            <td valign="bottom" width="4" style="border-bottom: white 3pt double;">&#160;</td>
          </tr>

      </table>
    </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      obligations of foreign subsidiary borrowers under the Primary Credit Facility
      are guaranteed by the Parent.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">For more
      information on the above indebtedness, see Note 9, &#8220;Long-Term Debt.&#8221;</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt"><br></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">F-94</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="MARGIN-TOP: 5pt; PADDING-LEFT: 36pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: -10pt; PAGE-BREAK-BEFORE: always; TEXT-INDENT: -18pt; LINE-HEIGHT: 10pt; FONT-FAMILY: Symbol"></div>
  <p align="left"><strong><a href="#toc">Back to Table of Contents</a></strong></p>
  <p></p>

    <div style="MARGIN: 0pt" align="center"><font style="FONT-FAMILY: Times New Roman" color="#000000"><strong>PART
      II.</strong></font></div>
    <div style="MARGIN-TOP: 13.35pt; MARGIN-BOTTOM: 0pt" align="center"><strong>INFORMATION
      NOT REQUIRED IN PROSPECTUS</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>Item 14. Other
      Expenses of Issuance and Distribution</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 6.65pt; TEXT-INDENT: 18pt">The
      SEC registration fee and the estimated expenses in connection with the offering
      are as follows:</div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="367">
            </td>
            <td width="13">
            </td>
            <td width="5">
            </td>
            <td width="42">
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="489">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Securities
                and Exchange Commission registration fee&#160;</div>
            </td>
            <td valign="top" width="17">
              <div style="MARGIN: 0pt" align="right">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="top" width="7">
              <div style="MARGIN: 0pt">$</div>
            </td>
            <td valign="bottom" width="56">
              <div style="MARGIN: 0pt" align="right">13,191.77</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="489">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Accounting
                fees and expenses</div>
            </td>
            <td valign="top" width="17">&#160;</td>
            <td valign="top" width="7">&#160;</td>
            <td valign="bottom" width="56">
              <div style="MARGIN: 0pt" align="right">[_]</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="489">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Legal
                fees and expenses</div>
            </td>
            <td valign="top" width="17">&#160;</td>
            <td valign="top" width="7">&#160;</td>
            <td valign="bottom" width="56">
              <div style="MARGIN: 0pt" align="right">[_]</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="489">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Printing
                expenses</div>
            </td>
            <td valign="top" width="17">&#160;</td>
            <td valign="top" width="7">&#160;</td>
            <td valign="bottom" width="56">
              <div style="MARGIN: 0pt" align="right">[_]</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="489">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">Miscellaneous</div>
            </td>
            <td valign="top" width="17">&#160;</td>
            <td valign="top" width="7" style="border-bottom: #000000 0.5pt solid;">&#160;</td>
            <td valign="bottom" width="56" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt" align="right">[_]</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="489">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt; LINE-HEIGHT: 10.35pt">TOTAL</div>
            </td>
            <td valign="top" width="17">&#160;</td>
            <td valign="top" width="7" style="border-bottom: #000000 3pt double;">&#160;</td>
            <td valign="bottom" width="56" style="border-bottom: #000000 3pt double;">
              <div style="MARGIN: 0pt" align="right">[_]</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>Item 15.
      Indemnification of Directors and Officers.</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 0pt"><strong>Indemnification
      Under the Delaware Revised Uniform Limited Partnership Act and the American
      Real
      Estate Partners, L.P. Amended and Restated Agreement of Limited
      Partnership</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">AREP
      is
      organized under the laws of Delaware. Section 17-108 of the Delaware Act,
      provides that a limited partnership may, and shall have the power to, indemnify
      and hold harmless any partners or other persons from and against any and all
      claims and demands whatsoever, subject to such standards and restrictions set
      forth in the partnership agreement.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">Section
      6.15 of the AREP partnership agreement, dated as of May 12, 1987, as amended,
      provides that the general partner, its affiliates, and all officers, directors,
      employees and agents of the general partner and its affiliates (individually,
      an
&#8220;Indemnitee&#8221;), to the fullest extent permitted by law, will be indemnified and
      held harmless from and against any and all losses, claims, demands, costs,
      damages, liabilities, joint and several, expenses of any nature (including
      attorneys&#8217; fees and disbursements), judgments, fines, settlements, and other
      amounts arising from any and all claims, demands, actions, suits or proceedings,
      whether civil, criminal, administrative or investigative, in which the
      Indemnitee may be involved, or threatened to be involved, as a party or
      otherwise by reason of its status as (x) the general partner or an affiliate
      thereof or (y) a partner, shareholder, director, officer, employee or agent
      of
      the general partner or an affiliate thereof or (z) a person serving at the
      request of the partnership in another entity in a similar capacity, which relate
      to, arise out of or are incidental to the partnership, its property, business
      or
      affairs, including, without limitation, liabilities under the federal and state
      securities laws, regardless of whether the Indemnitee continues to be a general
      partner, an affiliate, or an officer, director, employee or agent of the general
      partner or of an affiliate thereof at the time any such liability or expense
      is
      paid or incurred, if (i) the Indemnitee acted in good faith and in a manner
      it
      believed to be in, or not opposed to, the best interests of the partnership,
      and, with respect to any criminal proceeding, had no reasonable cause to believe
      its conduct was unlawful and (ii) the Indemnitee&#8217;s conduct did not constitute
      willful misconduct. Our partnership agreement further provides that an
      Indemnitee shall not be denied indemnification in whole or in part under Section
      6.15 by reason of the fact that the Indemnitee had an interest in the
      transaction with respect to which the indemnification applies if the transaction
      was otherwise permitted by the terms of the partnership agreement. Any
      indemnification under Section 6.15 shall be satisfied solely out of the assets
      of the partnership. The record holders of the depositary units shall not be
      subject to personal liability by reason of the indemnification provision.</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>Item 16.
      Exhibits</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">(a)
      Exhibits</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">See the
      accompanying Exhibit Index.</div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt"><strong><i>Item 17.
      Undertakings</i></strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">The
      undersigned registrants hereby undertake:</div>
    <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 36pt; MARGIN-BOTTOM: -12pt; TEXT-INDENT: -18pt">(1)</div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt">To file, during any period in which
      offers or sales are being made, a post-effective amendment to this registration
      statement</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">II-1</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">

    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: -12pt; PAGE-BREAK-BEFORE: always;"></div>

  <p align="left"><strong><a href="#toc">Back to Table of Contents</a></strong></p>
  <p></p>

    <div style="PADDING-LEFT: 54pt; TEXT-INDENT: -18pt">(i)</div>
    <div style="PADDING-LEFT: 54pt; MARGIN: 0pt">To include any prospectus required
      by Section 10(a)(3) of the Securities Act;</div>
    <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 54pt; MARGIN-BOTTOM: -12pt; TEXT-INDENT: -18pt">(ii)</div>
    <div style="PADDING-LEFT: 54pt; MARGIN: 0pt">To reflect in the prospectus any
      facts or events arising after the effective date of the Registration Statement
      (or the most recent post-effective amendment thereof) which, individually or
      in
      the aggregate, represent a fundamental change in the information set forth
      in
      the Registration Statement. Notwithstanding the foregoing, any increase or
      decrease in volume of securities offered (if the total dollar value of
      securities offered would not exceed that which was registered) and any deviation
      from the low or high end of the estimated maximum offering range may be
      reflected in the form of prospectus filed with the commission pursuant to Rule
      424(b) if, in the aggregate, the changes in volume and price represent no more
      than a 20% change in the maximum aggregate offering price set forth in the
      &#8220;Calculation of Registration Fee&#8221; table in the effective Registration Statement;
      and</div>
    <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 54pt; MARGIN-BOTTOM: -12pt; TEXT-INDENT: -18pt">(iii)</div>
    <div style="PADDING-LEFT: 54pt; MARGIN: 0pt">To include any material information
      with respect to the plan of distribution not previously disclosed in the
      Registration Statement or any material change to such information in the
      Registration Statement; provided, however, that paragraphs (1)(i), (1)(ii)
      and
      (1)(iii) do not apply if the information required to be included in a
      post-effective amendment by those paragraphs is contained in periodic reports
      filed with or furnished to the SEC by the registrants pursuant to Section 13
      or
      15(d) of the Exchange Act that are incorporated by reference in the registration
      statement, or is contained in a form of prospectus filed pursuant to Rule 424(b)
      that is a part of the Registration Statement.</div>
    <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 36pt; MARGIN-BOTTOM: -12pt; TEXT-INDENT: -18pt">(2)</div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt">That, for the purpose of
      determining any liability under the Securities Act, each such post-effective
      amendment shall be deemed to be a new registration statement relating to the
      securities offered therein, and the offering of such securities at that time
      shall be deemed to be the initial bona fide offering thereof.</div>
    <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 36pt; MARGIN-BOTTOM: -12pt; TEXT-INDENT: -18pt">(3)</div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt">To remove from registration by
      means of a post-effective amendment any of the securities being registered
      that
      remain unsold at the termination of the offering.</div>
    <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 36pt; MARGIN-BOTTOM: -12pt; TEXT-INDENT: -18pt">(4)</div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt">That, for the purpose of
      determining liability under the Securities Act to any purchaser:</div>
    <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 54pt; MARGIN-BOTTOM: -12pt; TEXT-INDENT: -18pt">(i)</div>
    <div style="PADDING-LEFT: 54pt; MARGIN: 0pt">If the registrant is relying on
      Rule 430B:</div>
    <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 72pt; MARGIN-BOTTOM: -12pt; TEXT-INDENT: -18pt">(A)</div>
    <div style="PADDING-LEFT: 72pt; MARGIN: 0pt">Each prospectus filed by the
      registrant pursuant to Rule 424(b)(3) shall be deemed to be part of the
      registration statement as of the date the filed prospectus was deemed part
      of
      and included in the Registration Statement; and</div>
    <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 72pt; MARGIN-BOTTOM: -12pt; TEXT-INDENT: -18pt">(B)</div>
    <div style="PADDING-LEFT: 72pt; MARGIN: 0pt">Each prospectus required to be
      filed pursuant to Rule 424(b)(2), (b)(5), or (b)(7) as part of a registration
      statement in reliance on Rule 430B relating to an offering made pursuant to
      Rule
      415(a)(l)(i), (vii) or (x) for the purpose of providing the information required
      by section 10(a) of the Securities Act shall be deemed to be part of and
      included in the Registration Statement as of the earlier of the date such form
      of prospectus is first used after effectiveness or the date of the first
      contract of sale of securities in the offering described in the prospectus.
      As
      provided in Rule 430B, for liability purposes of the issuer and any person
      that
      is at that date an underwriter, such date shall be deemed to be a new effective
      date of the Registration Statement relating to the securities in the
      Registration Statement to which that prospectus relates, and the offering of
      such securities at that time shall be deemed to be the initial bona fide
      offering thereof. Provided, however, that no statement made in a registration
      statement or prospectus that is part of the Registration Statement or made
      in a
      document incorporated or deemed incorporated by reference into the Registration
      Statement or prospectus that is part of the Registration Statement will, as
      to a
      purchaser with a time of contract of sale prior to such effective date,
      supersede or modify any statement that was made in the Registration Statement
      or
      prospectus that was part of the Registration Statement or made in any such
      document immediately prior to such effective date; or</div>
    <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 54pt; MARGIN-BOTTOM: -12pt; TEXT-INDENT: -18pt">(ii)</div>
    <div style="PADDING-LEFT: 54pt; MARGIN: 0pt">If the registrant is subject to
      Rule 430C, each prospectus filed pursuant to Rule 424(b) as part of a
      Registration Statement relating to an offering, other than Registration
      Statements relying on Rule 430B or other than prospectuses filed in reliance
      on
      Rule 430A, shall be deemed to be part of and included in the Registration
      Statement as of the date it is first used after effectiveness. Provided,
      however, that no statement made in a Registration Statement or prospectus that
      is part of the Registration Statement or made in a document incorporated or
      deemed incorporated by reference into the Registration Statement or prospectus
      that is part of the Registration Statement will, as to a purchaser with a time
      of contract of </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">II-2</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 54pt; MARGIN-BOTTOM: 0pt; PAGE-BREAK-BEFORE: always">

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  <p></p>

sale
      prior to such first use, supersede or modify any statement that was made in
      the
      Registration Statement or prospectus that was part of the Registration Statement
      or made in any such document immediately prior to such date of first use.</div>
    <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 36pt; MARGIN-BOTTOM: -12pt; TEXT-INDENT: -18pt">(5)</div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt">That, for the purpose of
      determining liability of the registrant under the Securities Act to any
      purchaser in the initial distribution of the securities, in a primary offering
      of securities of the undersigned registrants pursuant to the Registration
      Statement, regardless of the underwriting method used to sell the securities
      to
      the purchaser, if the securities are offered or sold to such purchaser by means
      of any of the following communications, the undersigned registrants will be
      a
      seller to the purchaser and will be considered to offer or sell such securities
      to such purchaser:</div>
    <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 54pt; MARGIN-BOTTOM: -12pt; TEXT-INDENT: -18pt">(i)</div>
    <div style="PADDING-LEFT: 54pt; MARGIN: 0pt">Any preliminary prospectus or
      prospectus of the undersigned registrant relating to the offering required
      to be
      filed pursuant to Rule 424;</div>
    <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 54pt; MARGIN-BOTTOM: -12pt; TEXT-INDENT: -18pt">(ii)</div>
    <div style="PADDING-LEFT: 54pt; MARGIN: 0pt">Any free writing prospectus
      relating to the offering prepared by or on behalf of the undersigned registrants
      or used or referred to by the undersigned registrant;</div>
    <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 54pt; MARGIN-BOTTOM: -12pt; TEXT-INDENT: -18pt">(iii)</div>
    <div style="PADDING-LEFT: 54pt; MARGIN: 0pt">The portion of any other free
      writing prospectus relating to the offering containing material information
      about the undersigned registrant or its securities provided by or on behalf
      of
      the undersigned registrant; and</div>
    <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 54pt; MARGIN-BOTTOM: -12pt; TEXT-INDENT: -18pt">(iv)</div>
    <div style="PADDING-LEFT: 54pt; MARGIN: 0pt">Any other communication that is
      an
      offer in the offering made by the undersigned registrant to the purchaser.</div>
    <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 36pt; MARGIN-BOTTOM: -12pt; TEXT-INDENT: -18pt">(6)</div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt">That, for purposes of determining
      any liability under the Securities Act, each filing of the registrant&#8217;s annual
      report pursuant to Section 13(a) or 15(d) of the Exchange Act (and, where
      applicable, each filing of an employee benefit plan&#8217;s annual report pursuant to
      Section 15(d) of the Exchange Act) that is incorporated by reference in the
      Registration Statement shall be deemed to be a new registration statement
      relating to the securities offered therein, and the offering of such securities
      at that time shall be deemed to be the initial bona fide offering thereof.</div>
    <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 36pt; MARGIN-BOTTOM: -12pt; TEXT-INDENT: -18pt">(7)</div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt">Insofar as indemnification for
      liabilities arising under the Securities Act may be permitted to directors,
      officers and controlling persons of the registrant pursuant to the foregoing
      provisions, or otherwise, the registrants have been advised that in the opinion
      of the SEC such indemnification is against public policy as expressed in the
      Securities Act and is, therefore, unenforceable. In the event that a claim
      for
      indemnification against such liabilities (other than the payment by the
      registrant of expenses incurred or paid by a director, officer of controlling
      person of the registrant in the successful defense of any action, suit or
      proceeding) is asserted by such director, officer or controlling person in
      connection with the securities being registered, the registrants will, unless
      in
      the opinion of its counsel the matter has been settled by controlling precedent,
      submit to a court of appropriate jurisdiction the question whether such
      indemnification by it is against public policy as expressed in the Securities
      Act and will be governed by the final adjudication of such issue.</div>
    <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 36pt; MARGIN-BOTTOM: -12pt; TEXT-INDENT: -18pt">(8)</div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt">For purposes of determining any
      liability under the Securities Act, the information omitted from the form of
      prospectus filed as part of a registration statement in reliance upon Rule
      430A
      and contained in the form of prospectus filed by the registrants pursuant to
      Rule 424(b)(1) or (4) or 497(h) under the Securities Act shall be deemed to
      be
      part of the Registration Statement as of the time it was declared
      effective.</div>
    <div style="MARGIN-TOP: 6.65pt; PADDING-LEFT: 36pt; MARGIN-BOTTOM: -12pt; TEXT-INDENT: -18pt">(9)</div>
    <div style="PADDING-LEFT: 36pt; MARGIN: 0pt">For the purpose of determining
      any
      liability under the Securities Act, each post-effective amendment that contains
      a form of prospectus shall be deemed to be a new registration statement relating
      to the securities offered therein, and the offering of such securities at that
      time shall be deemed to be the initial <i>bona fide</i> offering thereof.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt"><br></div>
    <div style="MARGIN: 0pt" align="center"><br><br></div>
    <div style="MARGIN: 0pt" align="center">II-3</div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt" align="center">

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  <p></p>

<strong>SIGNATURES</strong></div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 6.65pt; TEXT-INDENT: 18pt">Pursuant
      to
      the requirements of the Securities Act of 1933, as amended, the registrant
      certifies that it has reasonable grounds to believe that it meets all of the
      requirements for filing a Form S-3 and has duly caused this Registration
      Statement to be signed on its behalf by the undersigned, thereunto duly
      authorized, in New York, New York on June 21, 2007.</div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="191">
            </td>
            <td width="19">
            </td>
            <td width="93">
            </td>
            <td width="162">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="255">&#160;</td>
            <td colspan="3" valign="bottom" width="368">
              <div style="MARGIN: 0pt">AMERICAN REAL ESTATE PARTNERS, L.P.</div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="255">&#160;</td>
            <td colspan="2" valign="bottom" width="151">&#160;</td>
            <td valign="bottom" width="217">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="255">&#160;</td>
            <td valign="bottom" width="26">
              <div style="MARGIN: 0pt">By:&#160;</div>
            </td>
            <td colspan="2" valign="bottom" width="341">
              <div style="MARGIN: 0pt">American Property Investors, Inc., its general
                partner</div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="255">&#160;</td>
            <td valign="bottom" width="26">&#160;</td>
            <td colspan="2" valign="bottom" width="341">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="255">&#160;</td>
            <td valign="bottom" width="26">
              <div style="MARGIN: 0pt">By:&#160;</div>
            </td>
            <td colspan="2" valign="bottom" width="341" style="border-bottom: #000000 0.5pt solid;">
              <div style="MARGIN: 0pt">/s/ Keith A. Meister</div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="255">&#160;</td>
            <td valign="bottom" width="26">&#160;</td>
            <td colspan="2" valign="bottom" width="341">
              <div style="MARGIN: 0pt">Keith A. Meister<br>Principal Executive Officer
                and <br>Vice Chairman of the Board</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18pt">KNOW
      BY
      ALL MEN BY THESE PRESENTS that each person whose signature appears below hereby
      constitutes and appoints Keith A. Meister as his true and lawful
      attorney-in-fact and agent with full power of substitution and resubstitution,
      to act for him and in his name, place and stead, in any and all capacities,
      to
      sign any or all amendments (including pre-effective and post-effective
      amendments) to this Registration Statement, including any subsequent
      registration statement for the same offering that may be filed under Rule 462(b)
      and to file the same, with all exhibits thereto, and other documents in
      connection therewith, with the Securities and Exchange Commission, granting
      unto
      said attorney-in-fact and agent full power and authority to do and perform
      each
      and every act and thing requisite and necessary to be done in and about the
      premises, as fully to all intents and purposes as he might or could do in
      person, hereby ratifying and confirming all that said attorney-in-fact and
      agent
      or his substitute may lawfully do or cause to be done by virtue hereof.</div>
    <div style="MARGIN-TOP: 6.65pt; MARGIN-BOTTOM: 6.65pt; TEXT-INDENT: 18pt">Pursuant
      to
      the requirements of the Securities Act of 1933, as amended, this Registration
      Statement has been signed by the following persons in the capacities and on
      the
      dates indicated:</div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="138">
            </td>
            <td width="12">
            </td>
            <td width="214">
            </td>
            <td width="12">
            </td>
            <td width="89">
            </td>
          </tr>
          <tr>
            <td valign="top" width="184" style="border-bottom: #000000 0.5pt solid;">
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                Keith
                A. Meister</div>
            </td>
            <td rowspan="2" valign="top" width="17">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td rowspan="2" valign="top" width="286">
              <div style="MARGIN: 0pt">Principal Executive Officer <br>and Vice Chairman
                of the Board<br>(Principal Executive Officer)</div>
            </td>
            <td rowspan="2" valign="top" width="17">
              <div style="MARGIN: 0pt">&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td rowspan="2" valign="top" width="118">
              <div style="MARGIN: 0pt" align="center">June 21, 2007</div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="184">
              <div style="PADDING-LEFT: 6pt; MARGIN: 0pt; TEXT-INDENT: -6pt">Keith
                A.
                Meister</div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="184">&#160;</td>
            <td valign="top" width="17">&#160;</td>
            <td valign="top" width="286">&#160;</td>
            <td valign="top" width="17">&#160;</td>
            <td valign="top" width="118">&#160;</td>
          </tr>
          <tr>
            <td valign="top" width="184" style="border-bottom: #000000 0.5pt solid;">
              <div style="PADDING-LEFT: 6pt; MARGIN: 0pt; TEXT-INDENT: -6pt">/s/
                Andrew
                Skobe</div>
            </td>
            <td rowspan="2" valign="top" width="17">&#160;</td>
            <td rowspan="2" valign="top" width="286">
              <div style="MARGIN: 0pt">Chief Financial Officer (Principal Financial
                Officer) <br>and Chief Accounting Officer <br>(Principal Accounting
                Officer)</div>
            </td>
            <td rowspan="2" valign="top" width="17">&#160;</td>
            <td rowspan="2" valign="top" width="118">
              <div style="MARGIN: 0pt" align="center">June 21, 2007</div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="184">
              <div style="PADDING-LEFT: 6pt; MARGIN: 0pt; TEXT-INDENT: -6pt">Andrew
                Skobe</div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="184">&#160;</td>
            <td valign="top" width="17">&#160;</td>
            <td valign="top" width="286">&#160;</td>
            <td valign="top" width="17">&#160;</td>
            <td valign="top" width="118">
              <div style="MARGIN-TOP: 3.35pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="184" style="border-bottom: #000000 0.5pt solid;">
              <div style="PADDING-LEFT: 6pt; MARGIN: 0pt; TEXT-INDENT: -6pt">/s/
                Jack G.
                Wasserman</div>
            </td>
            <td rowspan="2" valign="top" width="17">&#160;</td>
            <td rowspan="2" valign="top" width="286">
              <div style="MARGIN: 0pt">Director</div>
            </td>
            <td rowspan="2" valign="top" width="17">&#160;</td>
            <td rowspan="2" valign="top" width="118">
              <div style="MARGIN: 0pt" align="center">June 21, 2007</div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="184">
              <div style="PADDING-LEFT: 6pt; MARGIN: 0pt; TEXT-INDENT: -6pt">Jack
                G.
                Wasserman</div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="184">
              <div style="MARGIN-TOP: 3.35pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: -6pt">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
            </td>
            <td valign="top" width="17">&#160;</td>
            <td valign="top" width="286">&#160;</td>
            <td valign="top" width="17">&#160;</td>
            <td valign="top" width="118">&#160;</td>
          </tr>
          <tr>
            <td valign="top" width="184" style="border-bottom: #000000 0.5pt solid;">
              <div style="PADDING-LEFT: 6pt; MARGIN: 0pt; TEXT-INDENT: -6pt">/s/&#160;William&#160;A.&#160;Leidesdorf</div>
            </td>
            <td rowspan="2" valign="top" width="17">&#160;</td>
            <td rowspan="2" valign="top" width="286">
              <div style="MARGIN: 0pt">Director</div>
            </td>
            <td rowspan="2" valign="top" width="17">&#160;</td>
            <td rowspan="2" valign="top" width="118">
              <div style="MARGIN: 0pt" align="center">June 21, 2007</div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="184">
              <div style="PADDING-LEFT: 6pt; MARGIN: 0pt; TEXT-INDENT: -6pt">William
                A.
                Leidesdorf</div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="184">&#160;</td>
            <td valign="top" width="17">&#160;</td>
            <td valign="top" width="286">&#160;</td>
            <td valign="top" width="17">&#160;</td>
            <td valign="top" width="118">&#160;</td>
          </tr>
          <tr>
            <td valign="top" width="184" style="border-bottom: #000000 0.5pt solid;">
              <div style="PADDING-LEFT: 6pt; MARGIN: 0pt; TEXT-INDENT: -6pt">/s/
                James
                L. Nelson</div>
            </td>
            <td rowspan="2" valign="top" width="17">&#160;</td>
            <td rowspan="2" valign="top" width="286">
              <div style="MARGIN: 0pt">Director</div>
            </td>
            <td rowspan="2" valign="top" width="17">&#160;</td>
            <td rowspan="2" valign="top" width="118">
              <div style="MARGIN: 0pt" align="center">June 21, 2007</div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="184">
              <div style="PADDING-LEFT: 6pt; MARGIN: 0pt; TEXT-INDENT: -6pt">James
                L.
                Nelson</div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="184">&#160;</td>
            <td valign="top" width="17">&#160;</td>
            <td valign="top" width="286">&#160;</td>
            <td valign="top" width="17">&#160;</td>
            <td valign="top" width="118">&#160;</td>
          </tr>
          <tr>
            <td valign="top" width="184" style="border-bottom: #000000 0.5pt solid;">
              <div style="PADDING-LEFT: 6pt; MARGIN: 0pt; TEXT-INDENT: -6pt">/s/
                Vincent
                J. Intrieri</div>
            </td>
            <td rowspan="2" valign="top" width="17">&#160;</td>
            <td rowspan="2" valign="top" width="286">
              <div style="MARGIN: 0pt">Director</div>
            </td>
            <td rowspan="2" valign="top" width="17">&#160;</td>
            <td rowspan="2" valign="top" width="118">
              <div style="MARGIN: 0pt" align="center">June 21, 2007</div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="184">
              <div style="PADDING-LEFT: 6pt; MARGIN: 0pt; TEXT-INDENT: -6pt">Vincent
                J.
                Intrieri</div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="184">&#160;</td>
            <td valign="top" width="17">&#160;</td>
            <td valign="top" width="286">&#160;</td>
            <td valign="top" width="17">&#160;</td>
            <td valign="top" width="118">&#160;</td>
          </tr>
          <tr>
            <td valign="top" width="184" style="border-bottom: #000000 0.5pt solid;">
              <div style="PADDING-LEFT: 6pt; MARGIN: 0pt; TEXT-INDENT: -6pt">&#160;</div>
            </td>
            <td rowspan="2" valign="top" width="17">&#160;</td>
            <td rowspan="2" valign="top" width="286">
              <div style="MARGIN: 0pt">Chairman of the Board</div>
            </td>
            <td rowspan="2" valign="top" width="17">&#160;</td>
            <td rowspan="2" valign="top" width="118">
              <div style="MARGIN: 0pt" align="center">&#160;</div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="184">
              <div style="PADDING-LEFT: 6pt; MARGIN: 0pt; TEXT-INDENT: -6pt">Carl
                C.
                Icahn</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="MARGIN: 0pt" align="center"><br><br></div>
    <div style="MARGIN: 0pt" align="center"><br></div>
    <div style="MARGIN: 0pt"><br></div>
    <hr style="PADDING-BOTTOM: 7.2pt; PADDING-TOP: 7.2pt" noshade size="1">
    <div style="PAGE-BREAK-BEFORE: always; MARGIN: 0pt" align="center">

  <p align="left"><strong><a href="#toc">Back to Table of Contents</a></strong></p>
  <p></p>

<strong>EXHIBIT
      INDEX</strong></div>
    <div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 6.65pt"><strong><i>Item 16.
      Exhibits</i></strong></div>
    <div>
      <table align="center" cellspacing="0" style="FONT-SIZE: 10pt">

          <tr>
            <td width="54">
            </td>
            <td width="12">
            </td>
            <td width="402">
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="72" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Exhibit
                No.</strong></div>
            </td>
            <td valign="top" width="16">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt" align="center"><strong>&#160;&#160;&#160;&#160;&#160;</strong></div>
            </td>
            <td valign="bottom" width="536" style="border-bottom: #000000 0.5pt solid;">
              <div style="FONT-SIZE: 8pt; MARGIN: 0pt; LINE-HEIGHT: 10pt" align="center"><strong>Description</strong></div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="72">&#160;</td>
            <td valign="top" width="16">&#160;</td>
            <td valign="bottom" width="536">&#160;</td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="top" width="72">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 10.35pt">4.1</div>
            </td>
            <td valign="top" width="16">&#160;</td>
            <td valign="top" width="536">
              <div style="MARGIN: 0pt">Indenture, dated as of April 5, 2007, by
                and
                among American Real Estate Partners, L.P., American Real Estate Finance
                Corp., AREH, as guarantor and Wilmington Trust Company, as Trustee
                (incorporated by reference to Exhibit 10.43 to AREP&#8217;s Form 8-K (SEC File
                No.&#160;1-9516), filed on April 5, 2007). </div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="72">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 10.35pt">4.2</div>
            </td>
            <td valign="top" width="16">&#160;</td>
            <td valign="top" width="536">
              <div style="MARGIN: 0pt">Form of Variable Rate Senior Convertible
                Notes
                due 2013 (incorporated by reference to Exhibit 10.44 to AREP&#8217;s Form 8-K
                (SEC File No. 1-9516), filed on April 17, 2007). </div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="top" width="72">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 10.35pt">4.3</div>
            </td>
            <td valign="top" width="16">&#160;</td>
            <td valign="top" width="536">
              <div style="MARGIN: 0pt">Registration Rights Agreement, dated as of
                April
                4, 2007 (incorporated by reference to Exhibit 10.42 to AREP&#8217;s Form 8-K
                (SEC File No. 1-9516), filed on April 5, 2007).</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="72">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 10.35pt">5.1</div>
            </td>
            <td valign="top" width="16">&#160;</td>
            <td valign="bottom" width="536">
              <div style="MARGIN: 0pt">Opinion of Proskauer Rose LLP.(1)</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="72">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 10.35pt">23.1</div>
            </td>
            <td valign="top" width="16">&#160;</td>
            <td valign="bottom" width="536">
              <div style="MARGIN: 0pt">Consent of Grant Thornton LLP.</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="72">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 10.35pt">23.2</div>
            </td>
            <td valign="top" width="16">&#160;</td>
            <td valign="bottom" width="536">
              <div style="MARGIN: 0pt">Consent of Grant Thornton LLP.</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="72">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 10.35pt">23.3</div>
            </td>
            <td valign="top" width="16">&#160;</td>
            <td valign="bottom" width="536">
              <div style="MARGIN: 0pt">Consent of KPMG LLP.</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="72">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 10.35pt">23.4</div>
            </td>
            <td valign="top" width="16">&#160;</td>
            <td valign="bottom" width="536">
              <div style="MARGIN: 0pt">Consent of KPMG LLP.</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="72">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 10.35pt">23.5</div>
            </td>
            <td valign="top" width="16">&#160;</td>
            <td valign="bottom" width="536">
              <div style="MARGIN: 0pt">Consent of KPMG LLP.</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="72">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 10.35pt">23.6</div>
            </td>
            <td valign="top" width="16">&#160;</td>
            <td valign="bottom" width="536">
              <div style="MARGIN: 0pt">Consent of Ernst &amp; Young LLP.</div>
            </td>
          </tr>
          <tr bgcolor="#ccffcc">
            <td valign="bottom" width="72">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 10.35pt">23.7</div>
            </td>
            <td valign="top" width="16">&#160;</td>
            <td valign="bottom" width="536">
              <div style="MARGIN: 0pt">Consent of Proskauer Rose LLP (included in
                Exhibit 5.1).(1)</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="72">
              <div style="MARGIN-TOP: 1.65pt; PADDING-LEFT: 6pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 10.35pt">24.1</div>
            </td>
            <td valign="top" width="16">&#160;</td>
            <td valign="bottom" width="536">
              <div style="MARGIN: 0pt">Power of Attorney (included on the signature
                page
                to the S-3).</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="FONT-SIZE: 11pt; MARGIN: 0pt; LINE-HEIGHT: 13pt">&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;</div>
    <div style="MARGIN-TOP: 0pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: -12pt; TEXT-INDENT: -18pt">(1)</div>
    <div style="MARGIN-TOP: 0pt; PADDING-LEFT: 18pt; MARGIN-BOTTOM: 2.5pt">To be
      filed by amendment.</div>
    <div style="MARGIN: 0pt"><br></div>
    <div style="MARGIN: 0pt"><br><br></div>
    <div style="MARGIN: 0pt" align="center">E-1</div>
    <div style="MARGIN: 0pt"><br></div>
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<DOCUMENT>
<TYPE>EX-23.1
<SEQUENCE>2
<FILENAME>v077570_ex23-1.htm
<TEXT>
<html>
  <head>
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      Unassociated Document
</title><!-- Licensed to: vf-->
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Exhibit
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><br></font>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">CONSENT
        OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><br></font>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
        have
        issued our reports dated March 2, 2007, accompanying the consolidated financial
        statements and management<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8217;</font>s assessment
        of
        the effectiveness of internal control over financial reporting included in
        the
        Annual Report of American Real Estate Partners, L.P. on Form 10-K for the
        year
        ended December 31, 2006 which are incorporated by reference in this Registration
        Statement and Prospectus. We hereby consent to the incorporation by reference
        of
        said reports in this Registration Statement and Prospectus, and to the use
        of
        our name as it appears under the caption &#8220;Experts.&#8221; Our audit report on the
        consolidated financial statements expressed an unqualified opinion and contains
        an explanatory paragraph relating to the change in accounting for the
        Partnership's&#160; investment in Imclone Systems Incorporated and Subsidiary
        from an available for sale security to the equity method.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
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            <td width="40%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td width="40%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
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          <tr valign="top" bgcolor="#ffffff">
            <td width="40%">&#160;</td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
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            </td>
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          <tr valign="top" bgcolor="#ffffff">
            <td align="left" width="40%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">/s/
              Grant Thornton LLP</font></td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td align="left" width="40%">
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            <td width="40%">&#160;</td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
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<DOCUMENT>
<TYPE>EX-23.2
<SEQUENCE>3
<FILENAME>v077570_ex23-2.htm
<TEXT>
<html>
  <head>
    <title>
</title>
</head>
  <body bgcolor="#ffffff">
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">
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        23.2</strong></font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">CONSENT
        OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM </font></div>
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        have
        issued our </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">report
        dated June 15, 2007, accompanying the balance sheet of American Property
        Investors, Inc. as of December 31, 2006, which is included in this Registration
        Statement and Prospectus. We consent to the use of the aforementioned report
        in
        the Registration Statement and Prospectus, and to the use of our name as
        it
        appears under the caption &#8220;Experts.&#8221;</font></div>
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      <table align="center" bgcolor="#ffffff" border="0" cellpadding="0" cellspacing="0" width="100%">

          <tr valign="top" bgcolor="#ffffff">
            <td width="40%">&#160;</td>
            <td width="5%">&#160;</td>
            <td width="5%">&#160;</td>
            <td width="40%">&#160;</td>
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          <tr valign="top" bgcolor="#ffffff">
            <td width="40%">&#160;</td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td width="40%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
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            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
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            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
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            <td width="40%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">New
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            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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  </body>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-23.3
<SEQUENCE>4
<FILENAME>v077570_ex23-3.htm
<TEXT>
<html>
  <head>
    <title>
</title>
</head>
  <body bgcolor="#ffffff">
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Exhibit
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>CONSENT
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
        consent to the use of our report dated March 1, 2007, with respect to the
        consolidated balance sheets of ImClone Systems Incorporated and subsidiary
        as of
        December 31, 2006 and 2005, and the related consolidated statements of
        operations, stockholders&#8217; equity (deficit) and comprehensive income, for the
        years then ended, incorporated herein by reference and to the reference to
        our
        firm under the heading &#8220;Experts&#8221; in the prospectus. Our report on the
        consolidated financial statements refers to the Company&#8217;s adoption of the
        provisions of Statement of Financial Accounting Standards No. 123R, &#8220;Share-Based
        Payment.&#8221; </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    </div>
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      <table align="center" bgcolor="#ffffff" border="0" cellpadding="0" cellspacing="0" width="100%">

          <tr valign="top" bgcolor="#ffffff">
            <td width="40%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td width="40%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
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            <td width="40%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">/s/
              KPMG
              LLP</font></td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td width="40%">
            </td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td align="left" width="40%">
            </td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td align="left" width="40%">
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            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
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              2007</font>&#160;</td>
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            <td width="5%">&#160;</td>
            <td width="40%">&#160;</td>
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    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
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      <div id="PN">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
        </div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
  </body>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-23.4
<SEQUENCE>5
<FILENAME>v077570_ex23-4.htm
<TEXT>
<html>
  <head>
    <title>
</title>
</head>
  <body bgcolor="#ffffff">
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Exhibit
      23.4</strong></font></div><br>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><br></font>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>CONSENT
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
        consent to the use of our report dated March 1, 2007, with respect to the
        consolidated balance sheets of ImClone Systems Incorporated and subsidiary
        as of
        December 31, 2006 and 2005, and the related consolidated statements of
        operations, stockholders&#8217; equity (deficit) and comprehensive income and cash
        flows for each of the years in the three year period ended December 31, 2006,
        incorporated herein by reference and to the reference to our firm under the
        heading &#8220;Experts&#8221; in the prospectus. Our report on the consolidated financial
        statements refers to the Company&#8217;s adoption of the provisions of Statement of
        Financial Accounting Standards No. 123R, &#8220;Share-Based Payment.&#8221;
</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
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          <tr valign="top" bgcolor="#ffffff">
            <td width="40%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            <td width="40%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
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            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            <td width="40%">
            </td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td align="left" width="40%">
            </td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
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            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
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            <td width="40%">&#160;</td>
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            <td width="5%">&#160;</td>
            <td width="5%">&#160;</td>
            <td width="40%">&#160;</td>
          </tr>

      </table><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
        </div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-23.5
<SEQUENCE>6
<FILENAME>v077570_ex23-5.htm
<TEXT>
<html>
  <head>
    <title>
</title>
</head>
  <body bgcolor="#ffffff">
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Exhibit
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Consent
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<DOCUMENT>
<TYPE>EX-23.6
<SEQUENCE>7
<FILENAME>v077570_ex23-6.htm
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        Statement (Form S-3) and related Prospectus of American Real Estate Partners,
        L.P. for the registration of 4,525,058 depositary units. </font></div>
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            <td width="40%"><font size="2">/s/ Ernst &amp; Young LLP</font></td>
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            </td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
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            <td width="40%">&#160;</td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
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            <td width="40%"><font size="2">Detroit, Michigan<br>June 18,
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