Expenses

RESULTS OF OPERATIONS
Operating Expenses:
		Three months ended						Six months ended
		June 30						June 30
(Percent of net sales)		2009		2008		Change		2009		2008		Change
Cost of sales		52.1	%	52.1	%	—	%	53.2	%	51.9	%	1.3	%
Selling, general and administrative expenses		21.7		20.7		1		22.5		20.2		2.3
Research, development and related expenses		5.4		5.4		—		5.9		5.4		0.5
(Gain)/loss on sale of business		—		0.3		(0.3	)	—		0.2		(0.2	)
Operating income		20.8	%	21.5	%	(0.7	)%	18.4	%	22.3	%	(3.9	)%
Interest Expense and Income:
		Three months ended						Six months ended
		June 30						June 30
(Millions)		2009			2008			2009			2008
Interest expense		$	55		$	51		$	110		$	106
Interest income		(7		)	(18		)	(18		)	(48		)
Total		$	48		$	33		$	92		$	58
Provision for Income Taxes:
		Three months ended				Six months ended
		June 30				June 30
(Percent of pre-tax income)		2009		2008		2009		2008
Effective tax rate		30.8	%	32	%	30.5	%	31.9	%
Noncontrolling Interest:
		Three months ended						Six months ended
		June 30						June 30
(Millions)		2009			2008			2009			2008
Noncontrolling Interest		$	9		$	18		$	21		$	36